Recently Piggly Wiggly has been looking into taking their services abroad and opening grocery stores in the State of Kuwait. In order for them to have a successful business abroad, they must abandon the customs of business that they have been used to and adhere to the ways of the Kuwaiti people. Research up front is vital as to not offend the customers, the vendors, and/or the government.
Company Background
Piggly Wiggly was founded in 1916 by Clarence Saunders. The first location was in Memphis, TN. What set Piggly Wiggly apart from other grocery stores was that it was the first self-service grocery store. Up until that point, a grocery list was handed to an employee who then picked all the items behind the counter and rang the items up. This innovation paved the way for checkout stations, high volume/low profit margin shopping, and having all products marked with their price. They pride themselves on value and freshness of product coupled with a clean environment.
Kuwait Information
Kuwait is located in the Middle East between Iraq and Saudi Arabia and borders the Persian Gulf. It is relatively small at 6,880 square miles, which is a little smaller than the state of New Jersey. There are about 2.6 million people in Kuwait as of 2012. It was in conflict with Iraq in 1990 and had to rebuild it’s infrastructure. The relationship was volatile until 2003 when Iraq’s leader was overthrown. Since then the economy has vastly improved and it is the 8th richest country in the world per capita. Though some of the Kuwaiti people sometimes try to take advantage of Americans, as a whole, they have respect for them and are glad to have them in their country. The most widely used language is Arabic, but English is often used as a second language, especially in business affairs. Islam is the primary religion and greatly affects the way business is performed. Their Holy day falls on Friday and everything shuts down. Thursday is the start of the weekend and many businesses are shut down then as well. The Holy month of Ramadan requires Muslims to fast during the day. During this month they are only allowed to work six hours a day. Expatriates are not required to follow the Islamic policies, but they cannot do so in public. Though 95% of Kuwaitis are Muslim, they are very tolerant of other religions and are the only Middle Eastern country to have ties to the Vatican.
Family Life
Family is very important to Kuwaitis as well as friends, tribe members, and neighbors. Nepotism, showing favoritism to family members in business and politics, is viewed in a positive way. This has more to do with trust than anything else. Like in most surrounding countries, females are protected and it is inappropriate to even ask about them. Social interaction is done with people of the same sex. If invited to someone’s home, it is custom to take a small gift. Unless it is known that the host partakes in alcoholic beverages, this should not be given.
Dining Etiquette
Often times dining will take place at a residence. If this is the case, conservative dress is expected. Upon entering the residence, check to see if the host is wearing shoes. Shoes should be removed only when the host is not wearing them. Greetings should start in rank of oldest to youngest in same sex. If men and women are both partaking in the meal, sometimes the women will be seated in a separate room. Socializing is done for a lengthy period before the meal. Partake in any food or drink you are offered as to not offend the host. When the meal is served, guests are served first, then the eldest to the youngest. Only eat with the right hand. The left hand is considered unclean. When finished eating, leave food on the plate. An empty plate signifies a request for more food. Appreciation is welcomed by the host and should be spoken several times throughout the meal. When the host stands, it signifies the end of the meal and it is time to leave.
Hurdles to Conducting Business in Kuwait
When scheduling a time to meet, it is very important to keep their schedule in mind. Prayers happen five times a day and meetings can be cut short if it interferes with prayer. During Ramadan, mornings would be best due to the six hour work day. During the hot summer months, many Kuwaitis leave the country in search of cooler climates. Plan on keeping important dates outside of this time frame. While meeting it is important to expect interruptions. Do not try to rush the intruder out. Rushing is seen as offensive to their customs and can set back or completely end a deal. Deals are made very slowly. Trust is such a major issue that they will want to meet for a while and build a friendship before they talk about any deal. High pressure tactics are offensive to them and will often result in them not wanting to do business anymore. Once a deal is reached, a contract is written in Arabic. It is greatly beneficial to continue to meet with associates to progress. The closer your bond between associates gets, the more comfortable they will be in doing business.

Possible Problems in Business Dealings
The most obvious problem is the name of the business itself. Pigs are considered unclean animals to the people that practice Islam. Just the logo would probably ruin the chances of business completely. It is recommended to change the name to a more Muslim-friendly name. It is highly recommended to have a legal team that is fluent in the laws of Kuwait to read over documents as well as a translator to make sure that the documentation is iron clad. With Ramadan and the hot months being impractical to conduct business, dealings should be pursued between these times.
Possible Problems in Customer Dealings
With a totally different culture comes a different business from the ground up. Certain types of foods will not be tolerated in a grocery store such as unclean foods that contain pork. Customers would shop earlier in the day because the evenings are spent with family. Ramadan would put a damper on sales while everyone fasts.
Reasons to Overcome
With Kuwait being the 8th wealthiest country in the world, people can afford to pay for the convenience and cleanliness of an upscale grocery store. Since Piggly Wiggly stores are family owned and operated, it would be viewed in a positive light already by the Kuwaiti people.
Conclusion
Though the customs differ from that of our own, the Kuwaiti people are more than willing to start a relationship with American businesses. Though it might take time to build their trust, they are very loyal to their friends and business associates. Kuwait is the most tolerant country in the Middle East and Americans are respected. Patience and an understanding of the customs is the key to this business venture.