The ICA-AP UAE team visited the Sharjah Co-operative Society as part of a series of engagements with local cooperative societies to better understand their needs and expectations. 

Sharjah Coop is the UAE’s first cooperative - it was set up in 1977 by ministerial decree to provide services to the local community and boost the living standards of people in Sharjah. It has been serving people in Sharjah for over 40 years while adapting to various challenges, including Covid-19 and the shift to online shopping.

Our advisors met with Mr. Zied Hammami, Executive Director; Mr. Salim Obaid Saif Alhajeri, Sourcing and Marketing Director; Mr. Abdullah Issa Al Huraimel, Executive Director, New Enterprises; and Mr. Faisal Khalid Al Naboodah, Marketing and PR Director. 

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Mr Hammami said, “As a coop, our mission and target is different from other competitors around us. We don’t just target profit, but also serve the community.” Sharjah Coop has 48 brick-and-mortar stores and 16 central jail stores. In addition to these, the coop runs MobiCoop, a ‘shop on wheels’, to reach customers in remote locations.

“When it comes to food, people need to smell, to touch,” said Mr Hammami. “Many branches were opened to support communities because no one else would go there. Our message for customers is we are here for you. We will come and serve you.” Mr. Abdullah Issa Al Huraimel added that “we consider participating in society as our main goal.”

Owned by 24,000 member shareholders, the coop is an important economic actor in Sharjah and employs 2,000 people, 25% of them women. Around 60-70% of the population living in the area shop at the cooperative, which has a market share of 25% in Sharjah and 5% in the UAE. Member shareholders get a dividend on the surplus made by the cooperative and 10% cash back on purchases.

Despite its success, Sharjah Coop faces several challenges, including competition from other retailers who can sell at a loss for many years just to gain the market share; and customers’ expectations to buy products at lower prices, a trend that began during the pandemic. In spite of these challenges, Sharjah Coop remains strong and continues to invest in the local community. In April 2021, it launched its first state-of-the-art Rahmania Mall Hypermarket in the city of Sharjah, an impressive US$1m development which our team visited.

Its commitment to the local community and multichannel approach brought Sharjah Coop several awards in 2021. The cooperative was one of the big winners at the 2021 Retail Asia Awards, receiving several accolades: Hypermarket of the Year – UAE, Omnichannel Strategy of the Year - UAE, and CSR Initiative of the Year - UAE.

We thank Sharjah Coop for their hospitality and for sharing their knowledge and experience with our team.

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