BMI added that leading hypermarket and supermarket retailers like EMKE Group and Spinneys Dubai have had to review their pricing by placing a greater emphasis on value.
But the research company said that both remained well placed to capitalise on a forecast 33 percent increase in headline MGR sales to AED7.28bn ($1.98bn) through to 2014.
"While consumers have undoubtedly lost some of their appetite for premium products, the downturn has not curbed the structural development of the MGR industry, which is still less developed than most comparably high income states," BMI added.
Through to 2014, BMI said it expected industry wide convenience store sales to outperform wider MGR sales, strengthening 54.5 percent to AED0.43bn.
"Despite weaker near-term demand for premium products, a strong forecast recovery (we expect GDP growth to register 3.6 percent in 2010) and untapped multi segment store launch potential continues to provide opportunities to existing retailers," the BMI report added.