Dukan: Responsible Retail
Achieving the Group’s ambitions of net zero and nature positive cannot be done by our businesses in isolation. Dukan’s work to lead change and bring its customers with them, is an important part of creating the broader changes needed for us to be able to achieve our ambitions.
- Quality Education
- Gender equality
- Decent work and economic growth
Dukan is a chain of neighborhood, or proximity stores opened in 2014 and is dedicated to changing the grocery shopping experience in Saudi Arabia. By 2019, Dukan had 100 stores. They are dedicated to introducing Saudi Arabian customers to new ways to be a sustainable consumer from recycling to reusable shopping bags.
These stores, based in Jeddah, Makkah, and soon also in Taif and Riyadh, offer a full range of fresh produce, basic groceries and a differentiated assortment of private label and exclusive brand products. Importantly, this means residents can shop sustainably, in their local neighborhood store, with a nice shopping experience, whilst avoiding additional car trips to large supermarkets.
Awareness of the impact of individual actions on sustainability is still limited within the general public across Saudi Arabia. Neighbourhood retail stores are a great place to raise awareness that small changes in our daily habits are an important part of creating the changes we all need. At the same time, Dukan needs to be leading by example.
For example, Dukan stores have been encouraging their customers to learn about recycling by installing recycling bins. These bins have started many conversations about the importance of recycling and thinking about how to reduce waste as an individual or family.
While seemingly trivial, these conversations begin to set a trend of behavioural changes in the way locals shop.
Monthly shopping eco bag usage
- No. of eco bags purchase as result of campaign impact
The response and results
A new business model introduced in 2021 sees the Dukan chain leading on sustainable practices in retail for Saudi Arabia and working hard to raise awareness of key issues with their customer base.
In July 2021 Dukan launched a campaign to encourage their customers to use eco bags and the effects are clear. The monthly usage of standard shopping bags dropped by approximately 50% in July when compared with the month March 2021, while sales of eco bags jumped to nearly 6 times the monthly average.
Dukan finished implementing first-line energy saving practices such as replacing all light fittings with LED bulbs. Other measures, likes ensuring cooling units are operating optimally by fitting doors on chillers and freezers are being implemented. Alongside these activities, other simple initiatives such as making the most of the available daylight in store rather than turning on electric lights have made a good impact on overall energy savings.
During 2021 a new logistics optimization strategy reduced the number of trucks delivering to the stores, which has equated to approximately 30% reduction in CO2 emissions per month.
Overall, in 2021 stores have saved 2,866,668 KW of energy and more reductions are expected in 2022.