JEDDAH, 5 May 2005 — Giordano clothes wear brand is rapidly expanding its presence in the Middle East focusing on the United Arab Emirates (UAE) and Saudi markets, with five new stores for the UAE market and nine stores in Saudi Arabia opening this year.
Ishwar Chugani, executive director for Giordano’s regional operations, said: “the retail sales surge has allowed us to expand the brand much further than we had earlier anticipated. The projected growth of populations in key markets, investment in tourism and the ease of trade in the region, have all combined to improve the retail industry and we are looking forward to further growth over the next five years.”
The brand experienced strong sales throughout 2004, with positive trends and growth already noted for the first quarter of 2005. Giordano is opening a flagship outlet store in Dubai Mall which is opening in 2007. In addition, the brand has taken sizeable locations in the UAE’s Dubai Festival City, Ibn Battuta Mall, Mall of the Emirates, and Khalidiyah Mall in Abu Dhabi, as well as space at Jeddah’s Serafi Mega Mall and Mahmoud Saeed Malls, Dammam’s Marina Mall and Riyadh’s Granada Center. Giordano is also looking at new markets during 2005, with plans to sign franchise agreements for the Lebanon, Egypt, India, Romania and Kazakhstan markets, as well as the addition of six new stores in Iran.
“Currently we have 36 stores around the Kingdom and by the end of the year we should have 45,” said Ahmedullah, assistant general manager of Giordano in Jeddah. “Our target market is the youth 13-years-old and above. When we first opened our stores 10 years ago most of our customers were expatriates because they were familiar with the brand but now Saudi nationals account for 60 percent of our regular customers,” he told Arab News.
The stores have seen a 30-35 percent annual sales growth by focusing on product quality, functionality and value-added services to the customer. The brand continues to offer its customers basic casual wear at competitive prices and improved product quality and customer service. The company is also involved in community projects such as the Disabled Children Association. “For every SR200 of purchases, SR10 is given to DCA,” said Ahmedullah.
In 2004, Giordano’s 1,300 stores around the world saw the start of an ambitious global refurbishment program, which has also been implemented in the Middle East, and will take approximately two years to complete. The new look Giordano stores will feature wider aisles, new lighting concepts, larger fitting rooms, with direct communications to sales staff and separation of product, to make it easier for customers.
Giordano Middle East celebrated its 10th anniversary last year. Established in Hong Kong in 1981, Giordano International now operates more than 1,300 stores in 30 countries, serving more than 1.5 billion customers across Asia, the Middle East, Australia and Europe. In March 1993, Giordano Middle East was established as a joint venture between Emirates Trading Agency, Dubai, and Giordano International Ltd., Hong Kong.