Two UAE-based retailers – Emke Group and Landmark Group – have been named among the world’s fastest 50 growing retail chains by auditing and research firm Deloitte. Emke Group, which operates the region’s largest retail chain LuLu Hypermarkets is the world’s 9th fastest growing retail chain, while Landmark Group has been named as the 16th fastest retailer in the world. They are trailing Amazon.com and Apple Inc — ranked 7th and 8th fastest growing retailer brands in the world, respectively.
“Retail revenue for the 50 fastest-growing retailers increased at a compound annual rate of 22 per cent between 2006 and 2011,” Ira Kalish, author of the report, said. “While the fastest 50 is based on revenue growth over a five-year period, most of the retailers on the list maintained their aggressive growth.”
Global Powers of Retailing 2013, a benchmark report released recently, also named these two UAE-based retailers amongst the world’s top 250 retail groups for the first time.
“The region’s retail sector has displayed strong resilience in the face of global economic downturn and is expected to continue to grow at a steady pace given its attractiveness to tourists and residents in terms of geographic location, developed logistics and availability of diverse and quality shopping options,” Mahboob Murshed, Managing Director, Alpen Capital, said.
According to Alpen Capital, between 2011 and 2016, the GCC’s retail sales are expected to grow at a compound annual growth rate (CAGR) of 7.7 percent to reach $270.3 billion by the end of the forecast period. “While the sector presents attractive opportunities, it is highly competitive and retailers need to continue to innovate so that they can achieve sustainable growth and profitability,” Murshed said. Lulu Group is owned by non-resident Indian (NRI) businessman MA Yusuf Ali based in the UAE. He’s also named as the most powerful Indian businessmen in the Gulf.
MA Yusuf Ali said “last 4-5 years have been very positive for us in spite of the global slowdown. In fact in this period, we opened 30 hypermarkets and malls across the region and recorded a sales growth of $4.25 billion from $2. 7 billion with compound annual growth rate of 30.5 percent. This shows the market is very strong for retailers who can provide world-class quality and service at affordable prices to consumers. Currently, we have 104 stores across the region and this year we intend to open another 12 hypermarkets including the first one in India. This will generate additional employment opportunities of over 4,500. We are also exploring new growth opportunities in Egypt, Iraq and countries in the Far East especially in Malaysia and Indonesia. At, present the group’s total strength is 30,000 from 29 nationalities.”
Emke Group also has a shopping mall development arm, Line Investments that has been building some of the region’s largest shopping mall where its Lulu Hypermarket brand usually drive shoppers and crowds to the shopping centers. Recently, the group has also started a money exchange house, which is expanding fast with the expansion of the group’s shopping mall chain. Emke Group has also developed India’s biggest shopping mall in Kochi in South Indian state of Kerala. – SG