While there is a lot of short-term uncertainty in the retail market today, it is undeniable that the mid-term and long-term outlook is very positive, driven by population growth, rising homeownership, deliberate and sustained government initiatives to transform the economy, and the growing number of women in the workforce.

Matthew Shay, President & CEO, National Retail Federation, USA and Mohamed Galal, Group Managing Director & CEO, United Electronic Company – eXtra discussed these uncertainties and opportunities for the region, in a conversation moderated by Pavlos Exarchos, Senior Partner, McKinsey & Company.

To deliver on the expectations of customers, the old way of managing retail is no longer sustainable. The modern environment requires complete integration of the retail experience. That in turn requires a reimagination of the structure, composition and investment focus of businesses to deliver a truly seamless experience. This is not just the Middle East phenomenon – it’s happening in every market around the world.

Ultimately, consumers want an experience. They want easy access to information, transparency, technology, payments, all in a single place. Consumer demand is driving integration in retail, because that’s where consumers want to play.

At the same time, consumers will continue to be price conscious and value driven for the foreseeable future. Companies need to take a thoughtful, strategic approach to understanding their consumers, their markets and their competition. They need to have the vision and the team to execute and a healthy balance sheet to withstand short-term uncertainties.

For publicly listed companies, there is a need to marry short-term investment to long term goals. That means that companies need to communicate the vision to the board, to investors and to the capital markets clearly and transiently so they don’t get punished when they deliver their quarterly results. There will be shorter-term pain, but the long-term benefits of investment will be substantial.

Retail is a different industry today compared to ten years ago. Companies still need to be good at supply chain, product placement and everything else that contributes to a successful business. But to compete in the current environment needs another level of scale and competency. It’s an environment that creates opportunity for new skills and new experiences and new opportunities.