For healthcare providers, retail settings provide an opportunity to redefine patient engagement, finds a new Knight Frank report
Retail clinics, popularly termed as ‘disruptive innovation in healthcare’ are outpatient healthcare facilities located within a retail setting- examples include pharmacies, shopping malls and residential community spaces. Retail clinics evolved within the healthcare landscape during the early 2000s, primarily in the US, where they were considered a convenient, affordable alternative to medical centres, urgent care centres, or emergency rooms.
According to insights by Definitive Healthcare, a data analytic company, in the five years leading up to 2023, the US retail clinic market has increased by 200 per cent, while emergency room utilisation decreased by 1 per cent over the same time period. This indicates that retail clinics are reducing the burden on urgent care clinics by managing non-critical cases, albeit to a limited extent.
In 2009, Emaar established the region’s first retail clinic, The Dubai Mall Medical Center, in partnership with US-based healthcare provider Methodist International. It is a premium facility offering care in cardiology, orthopaedics, general surgery, endocrinology and more. Additionally, the clinic is equipped with radiology and laboratory services as well. Over the following years, this model of care has gained immense popularity in the region, prompting leading healthcare providers such as Burjeel Holdings and American Hospital to establish similar retail clinics across the UAE.
Drivers for retail clinics in the UAE
Urbanisation
More than 85 per cent of the UAE’s population lives in urban areas, so retail clinics located in shopping malls and community centre provide easy access for time-constrained urban residents.
Rising Chronic Disease Burden
As per the latest available information, in UAE, 12.8 per cent of the population suffer from diabetes, 29 per cent have hypertension and 18 per cent are obese. This indicates the increasing burden of chronic diseases driving demand for preventive and wellness services which are addressed by retail clinics.
Health Tourism
Dubai ranked 6th and Abu Dhabi ranked 9th on the Medical Tourism Overall Ranking (2020-2021), establishing UAE as a popular hub for medical tourists. In 2023, Dubai welcomed 691,000 medical tourists driving demand for specialised medical services. This has paved way for integrating healthcare and retail experiences where the retail clinic model offers patients and companions both medical care and leisure opportunities under one roof.
Type of retail clinics
Retail clinics can be segmented into:
• Hospital-owned retail clinics – healthcare facilities operated or managed by hospital providers and positioned in retail settings such as malls and pharmacies. These clinics aim to extend the hospital’s reach to the community.
Examples of hospital-owned retail clinics in the UAE:
• Mediclinic and Burjeel Holdings – strategically located within Dubai and Abu Dhabi. They offer accessible and comprehensive healthcare services in specialties such as obstetrics and gynaecology, paediatrics, dermatology, and telemedicine, seamlessly integrating with their hospitals for continuity of care.
• Mubadala Day Surgery Center – a comprehensive healthcare facility offering day surgery, outpatient consultation, laboratory and diagnostic facilities in more than 30 medical specialties including rehabilitation. Furthermore, the centre has international medical provider satellite clinics, such as Imperial College of London and Moorfields Eye Hospital, thus evolving the retail clinic concept from primary care to an advanced care model.
• Retail-owned clinics – These are chains operated by retail providers such as pharmacies, hypermarkets, or large retail-based groups.
Examples of retail-owned clinics in the UAE:
• Al Futtaim Group: The group’s Health Hub Clinic concept provides a one-stop healthcare experience with specialised medical specialties with a focus on primary care. The clinics are located in populated areas of Dubai, such as Dubai Festival City and Barsha Heights.
• Life Healthcare Group: The group commenced operations with multiple pharmacies across the UAE. In 2022, the group launched its first walk-in clinic, which provided primary care services within its pharmacies, offering quick health check-ups and consultations.
Convergence of retail providers and healthcare
The convergence between retail and healthcare creates synergies benefitting both sectors.
Benefits for healthcare providers in a retail setting:
• Increased Foot Traffic and Visibility: Retail locations, especially in high-traffic areas like shopping malls, offer healthcare providers greater visibility, attracting more patients who otherwise may not have considered healthcare services.
• Convenience and Accessibility for Patients: Patients benefit from the convenience of receiving healthcare services during routine errands, such as grocery shopping or other retail activities.
• Cross-Selling and Upselling Opportunities: Retail clinics can leverage their position within retail settings to cross-sell additional services, such as wellness programmes or specialist consultations, as well as related products such as supplements, personal care items, or prescriptions.
• Enhancing the Experience of Families: Bystanders accompanying patients to retail clinics also benefit from the setting, as they can engage in other retail activities while their family members undergo consultations and examinations. Such convenience enhances the overall experience for families and caregivers, making healthcare visits hassle-free.
• Comfort-Oriented Environment for Patients: For some patients, receiving treatment within a retail clinic is less intimidating than a traditional hospital or doctor’s office. The retail setting offers a distinctive atmosphere from the traditional clinics or hospitals, making the visit less stressful for anxious patients.
Benefits for retail provider having a healthcare facility:
• Expanding customer base: Retail outlets with healthcare facilities not only attract regular shoppers but also individuals seeking medical services. This enhances foot traffic and expands customer segments to the business.
• Long-Term Lease Model: Healthcare providers often enter long-term lease agreements with retail operators, ensuring stable and predictable rental income for the retail space. These long-term partnerships are mutually beneficial, with healthcare providers securing a reliable location and retailers ensuring a steady tenant.
• Activation of remote locations in the mall: These clinics typically utilise locations closer to the parking such as entrances and exits, leading to activation of these zones in the mall, which typically are not preferred by prominent retailers.
• ‘Anchor Tenant’ Status: Healthcare operators, such as larger clinics or day surgery centres, can serve as anchor tenants in retail locations.
For healthcare providers, retail settings provide an opportunity to redefine patient engagement, offering an integrated care experience. For retail providers, healthcare clinics are not just tenants—they are anchors that can support retailers by driving foot traffic and encouraging longer visits, as patients and their families often engage in shopping, dining, or other retail activities during their visit, thus creating a destination where health and convenience are intertwined. As these sectors continue to converge, a more connected, accessible, and resilient healthcare ecosystem is being formed, reshaping how people experience health and well-being.
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