In a culturally diverse area with a varied population, it’s expected that the food and grocery retail sector in the UAE will experience significant growth. The UAE supermarket industry is thriving, dynamic, and profitable, with a strong presence of hypermarkets, a growing online grocery segment, and a focus on food products. Hypermarkets such as Lulu, Carrefour, Spinneys, Choithrams, and Union Cooperate – the major players in the industry – offer a wide variety of products under one roof, making them a popular choice.

Supermarkets and superstores, too, are experiencing steady growth, and this expands to convenience stores as well. For an entrepreneur in the UAE who is looking to break into its grocery industry, there are two exceedingly useful business activities you can choose from. So, let’s explore them both.

It’s good to note that both of these activities are eligible for an instant license from SPC Free Zone upon application. Along with an instant license, SPC Free Zone offers aspiring entrepreneurs a guaranteed banking account in five working days, unlimited visas for partners, investors, and employees, and a host of other benefits. 

4711.00 – Retail sale in non-specialized stores with food or beverages predominating

This type of retail store falls under the category of general stores that sell a wide variety of goods, but with a focus on food and beverages. While they predominantly sell food and beverages, they can carry a selection of other everyday goods. However, the core focus here is food and beverages.

An entrepreneur can think of these stores as a one-stop shop for essentials and household items, with a strong emphasis on food and drinks. Examples include corner stores, convenience stores, and small-scale supermarkets. They are typically smaller than hypermarkets but larger than convenience stores with a more limited selection. They cater to everyday needs and are often located in residential neighbourhoods for easy access.

As a business, a non-specialized grocery store can be incredibly profitable. It involves coordination with suppliers, training employees, focusing on customer satisfaction, and learning the needs of your clientele based on the location and food trends, along with top-notch maintenance, accounting, and business management abilities. 

It’s important to note that this business activity does not allow retail sale of fuel. Essentially, grocery stores that also function as fuel stations do not fall under this activity.

• Third-party Approval: Approval from the Sharjah Food Authority is required for this business activity, post obtaining your trade license.
• Filing of Economic Substance Return: Business activity 4711.00 is exempt from this requirement
• Anti-Money Laundering Compliance: Business activity 4711.00 is exempt from this requirement

4711.01 – Retail sale of a large variety of goods of which, however, food products and beverages should be predominant

An entrepreneur looking to establish a hypermarket or large-scale supermarket would typically veer towards this business activity. It enables the selling of food and beverages, but go beyond just groceries. These stores stock a diverse range of merchandise, including clothing, furniture, appliances, hardware supplies, cosmetics, and more. When it comes to hypermarkets and large-scale supermarkets, the potential for growth is immense, if done right. It entails managing relationships with suppliers, training staff, prioritizing customer satisfaction, understanding local customer preferences and food trends, and maintaining excellent standards in maintenance, accounting, and overall business management.

It’s important to note that this business activity does not allow retail sale of fuel. Essentially, grocery stores that also function as fuel stations do not fall under it.

• Third-party Approval: Approval from the Security Industry Regulatory Agency (SIRA) / Food Safety Department (Sharjah Municipality) is required for this business activity, post obtaining your trade license.
• Filing of Economic Substance Return: Business activity 4711.01 is exempt from this requirement
  
• Anti-Money Laundering Compliance: Business activity 4711.01 is exempt from this requirement

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