Hardware chain Speedex retools its sales strategy as wholesale falls flat

Speedex, the Dubai-based hardware seller, is reshaping its business strategy following a dip in its wholesale business, according to the company’s owner and managing director Mustafa Moiz.

In a recent interview with Gulf News, Moiz said that whilst his retail business had grown, the company had fallen flat elsewhere.

“My retail business grew 5 percent so far in 2017, and we are expecting a growth of between 10 and 12 percent compared to 2016 by the end of the year,” Moiz said, adding: “Wholesale is more susceptible to geopolitics however.”

According to the founder, the company used to do good business with countries from the former Soviet Union, and more recently found some success in Iraq, before they both eventually dried up due to regional issues.

Overall, Moiz says, “Wholesale is stagnant, and we are facing challenges.”

Despite these obstacles, Moiz has overhauled his market approach to be more focused on retail instead.

“Retail has given us more hope, so we shifted our focus towards that market” he said. “Customer spending is going to go up towards 2020 … The government is not holding back, they’re very, very confident.”

As for Speedex’s plan to capture the retail market in the face of stiff competition, Moiz noted his company’s pricing strategy.

According to the executive, his company’s competitive advantage comes from its focus on affordable pricing.

“We can meet all pockets,” Moiz said, adding: “Some people find Dubai a bit expensive, so retailers need to be very careful to be correctly priced.”

Today’s customers can’t be fooled, according to Moiz, but the managing director remains confident: “If we have the right pricing, I don’t think we can fail.”