Hypermarkets in the GCC: Loyalty Programs Need a Loyalty Upgrade

Rajnish Kautia
Aug 7
4 min read

In the highly competitive world of GCC hypermarkets, retailers like LuLu, Carrefour, Nesto, and Union Coop have created sprawling ecosystems that offer everything from fresh groceries to electronics under one roof. With billions in revenue and millions of customers walking through their aisles every month, these retail giants have invested heavily in loyalty programs to drive repeat business.

But as consumer expectations rise and global benchmarks like Costco redefine the value of loyalty, it's clear that GCC hypermarkets need to do more than just points and discounts.

The next phase of growth in this segment will depend not on what they sell — but how they build real, meaningful loyalty.

The State of Loyalty Today: Points, Discounts & Promos

Here’s how the top players are faring:

🔹 LuLu – Happiness Loyalty Program

Members: ~6.3 million (Q1 2025)
Sales Linked to Members: ~65%
Strength: Rapid adoption, frequent promotional tie-ins, and private label growth
Weakness: Program is largely transactional – driven by price sensitivity, not emotional loyalty

🔹 Carrefour (Majid Al Futtaim) – SHARE / MyClub

Members: ~4 million (as reported in 2024)
Points on Purchases: Earned across Carrefour, VOX Cinemas, MAF malls
Strength: Ecosystem-wide usage, seamless app experience
Weakness: Limited perceived value for grocery shoppers, low cashback rate (~0.5%)

🔹 Nesto, Union Coop, Grand

Offer point-based or app-based loyalty, often limited in value or use case
Programs often act as discount conduits, rather than community or lifestyle builders

Loyalty ≠ Discounts. Time to Rethink.

Most GCC hypermarket programs are built on basic loyalty mechanics:

Points per dirham
Cashbacks
Weekend deals for members

These methods do drive short-term traffic, but they don’t build long-term customer relationships. They fail to differentiate, especially in a region where price wars are common and choice is abundant.

What’s missing is personalisation, exclusivity, emotional connection, and community.

What Needs to Change? The Future of Hypermarket Loyalty

Here’s what regional hypermarkets must start doing to build real brand love and stickiness:

1. Tiered Loyalty Programs

Like airlines and credit cards, offer tiered benefits based on spend or visits.

Example: Silver, Gold, Platinum tiers with increasing perks — early access to offers, express checkout lanes, or exclusive shopper events.
Tiering drives aspirational behaviour, increasing basket size and frequency.

2. Hyper-Personalisation

Move beyond “10% off on milk” to AI-powered offers based on actual buying behaviour.

Reward frequency, brand preferences, dietary patterns, etc.
Send relevant coupons before the customer thinks of buying — not after.

3. Experiential Loyalty

Offer members real-life experiences:

Exclusive food tastings
Private shopping hours during Ramadan
Member-only cooking or product demo events

This builds emotional memory, not just savings.

4. Cross-Ecosystem Integration

Carrefour has a head start here with SHARE, but there's more to explore:

Tie-ins with fuel stations, pharmacies, delivery apps, wellness centers
Make loyalty points usable beyond the store

Imagine redeeming LuLu points for a gym membership or cinema ticket. That’s real utility.

5. Gamification & Micro-Rewards

Borrow ideas from Duolingo and Starbucks or even Temu:

Earn badges, streaks, surprise bonuses
“Spin the wheel” weekly for loyal app users
Celebrate birthdays, anniversaries, or spend milestones

This builds habit loops — and habits drive revenue.

Bottom Line: Loyalty Should Feel Like a Club, Not a Coupon

Costco’s success is proof that when you make customers feel like members, not just buyers, they stick — even if the prices aren’t always the lowest. GCC hypermarkets have the scale, the data, and the digital infrastructure. What they need now is a bolder strategy — one that turns loyalty programs into loyalty movements.

Because the future of retail is not just about being cheaper — it's about being irreplaceable.

About SRK Online

SRK Online is a Dubai based strategic brand and digital solutions company committed to helping businesses unlock their full market potential. We specialise in building impactful brand experiences, integrating digital strategy with creative storytelling, and driving growth across online and offline channels.

With a deep understanding of evolving consumer behaviour, especially in retail, lifestyle, and startup ecosystems, SRK Online delivers tailored solutions—from brand identity and e-commerce development to social media marketing, content creation, and customer engagement strategy.

How We Help You Grow Your Brand

Strategic Brand Positioning
We help define your unique brand voice, visual identity, and market differentiation to ensure long-term relevance.
Digital Presence Optimisation
From website development to social media strategy, we build digital touchpoints that convert and connect.
Creative Content & Campaigns
We craft high-impact visuals, stories, and campaigns that inspire loyalty and drive emotional engagement.
Growth & Performance Marketing
Our data-led approach ensures your brand not only gains visibility but also scales profitably across the right audiences.
E-commerce & Omni-Channel Retail Solutions
Whether launching your online store or integrating retail tech, we streamline operations to support seamless customer journeys.

Let’s Build Something That Lasts

At SRK Online, we don’t just design brands—we grow them. Partner with us to create a brand people remember and results you can measure. Get in touch today !!

#GCCRetail #LoyaltyPrograms #RetailStrategy #CustomerExperience #LuLuHypermarket #Carrefour #RetailTransformation #MAF #CXStrategy #SRKOnline #BrandStrategy #DigitalMarketing #CreativeAgency #StartupSupport #BrandGrowth #EcommerceSolutions #OmniChannelRetail #PerformanceMarketing #SocialMediaStrategy #ContentMarketing #VisualBranding #CustomerExperience #MarketingForStartups #DigitalTransformation #RetailBranding #BusinessGrowthPartner