Lulu Retail Group Expands Operations in the UAE and Saudi Arabia
Major expansion plans will generate thousands of jobs across the region as Lulu Group explores new retail opportunities.
The UAE-based Lulu Retail Group is set to expand its operations in response to the growing population in the outskirts of major cities within the Emirates.
Senior officials of the group reported plans to open new outlets that will potentially create hundreds, if not thousands, of job vacancies in the retail sector across the UAE.
According to Yusuffali MA, the founder of Lulu Group, the company is exploring new opportunities to establish 15 new projects in Dubai and the Northern Emirates.
He noted, "The population is growing from towns to outskirts in all the major cities of the UAE, therefore, we are exploring those areas.
Whether it will be a hypermarket or an express store, it will depend on the density of the population of those areas."
The population growth in major cities such as Dubai, Abu Dhabi, and Sharjah has been fueled by an influx of foreign workers, leading many residents to seek housing in less expensive outskirt areas.
This trend has prompted retailers like Lulu to look beyond traditional downtown locations.
Saifee Rupawala, CEO of Lulu Retail, stated that the group's ongoing discussions with numerous developers indicate a strong future for retail expansion in the UAE.
"We are in discussion with several developers.
We thank the main developers who have considered us as a cornerstone and they have given us the opportunity.
We have 30 projects under discussion in the UAE, but not yet finalized,” he said.
Additionally, Rupawala highlighted that the UAE and Saudi Arabia are the primary target markets for the retailer's growth.
Lulu Retail plans to open 37 new stores in Saudi Arabia and aims for a total of 100 stores by 2028. The company's current presence is limited, with operations in only 16 cities, while plans are in place to expand to 31 cities as part of Saudi Vision 2030, which seeks to enhance the retail sector.
Recently, Lulu has opened new outlets in the holy cities of Makkah and Madinah, further solidifying its presence in the Saudi market.
The job creation potential from these expansions is significant, as each store typically requires a varying number of employees based on its size.
The group disclosed in its IPO prospectus that a hypermarket employs about 290 staff, while express stores hire approximately 55, and mini-markets typically staff three.
As of June 30, 2024, Lulu Retail reported employing around 55,000 full-time employees across its stores.
With expansion plans underway in the UAE, Saudi Arabia, and other Gulf nations, the company anticipates substantial job creation.
In a recent conversation, Rupawala expressed optimism about growth prospects in the region, mentioning that Kuwait is also identifying new towns for future openings, indicating a strategic approach to retail development across the Gulf.
The latest hypermarket opened in Al Satwa, Dubai, marked as the 23rd store since Lulu went public last year.
As of now, Lulu operates a total of 252 stores throughout the Gulf Cooperation Council (GCC), with additional openings planned in key areas including Al Jaddaf, JLT, Nad Al Hammar, Dubai Expo City, Khorfakkan, and Oud Al Mutina.
Senior officials of the group reported plans to open new outlets that will potentially create hundreds, if not thousands, of job vacancies in the retail sector across the UAE.
According to Yusuffali MA, the founder of Lulu Group, the company is exploring new opportunities to establish 15 new projects in Dubai and the Northern Emirates.
He noted, "The population is growing from towns to outskirts in all the major cities of the UAE, therefore, we are exploring those areas.
Whether it will be a hypermarket or an express store, it will depend on the density of the population of those areas."
The population growth in major cities such as Dubai, Abu Dhabi, and Sharjah has been fueled by an influx of foreign workers, leading many residents to seek housing in less expensive outskirt areas.
This trend has prompted retailers like Lulu to look beyond traditional downtown locations.
Saifee Rupawala, CEO of Lulu Retail, stated that the group's ongoing discussions with numerous developers indicate a strong future for retail expansion in the UAE.
"We are in discussion with several developers.
We thank the main developers who have considered us as a cornerstone and they have given us the opportunity.
We have 30 projects under discussion in the UAE, but not yet finalized,” he said.
Additionally, Rupawala highlighted that the UAE and Saudi Arabia are the primary target markets for the retailer's growth.
Lulu Retail plans to open 37 new stores in Saudi Arabia and aims for a total of 100 stores by 2028. The company's current presence is limited, with operations in only 16 cities, while plans are in place to expand to 31 cities as part of Saudi Vision 2030, which seeks to enhance the retail sector.
Recently, Lulu has opened new outlets in the holy cities of Makkah and Madinah, further solidifying its presence in the Saudi market.
The job creation potential from these expansions is significant, as each store typically requires a varying number of employees based on its size.
The group disclosed in its IPO prospectus that a hypermarket employs about 290 staff, while express stores hire approximately 55, and mini-markets typically staff three.
As of June 30, 2024, Lulu Retail reported employing around 55,000 full-time employees across its stores.
With expansion plans underway in the UAE, Saudi Arabia, and other Gulf nations, the company anticipates substantial job creation.
In a recent conversation, Rupawala expressed optimism about growth prospects in the region, mentioning that Kuwait is also identifying new towns for future openings, indicating a strategic approach to retail development across the Gulf.
The latest hypermarket opened in Al Satwa, Dubai, marked as the 23rd store since Lulu went public last year.
As of now, Lulu operates a total of 252 stores throughout the Gulf Cooperation Council (GCC), with additional openings planned in key areas including Al Jaddaf, JLT, Nad Al Hammar, Dubai Expo City, Khorfakkan, and Oud Al Mutina.
