Majid Al-Futtaim expands luxury retail footprint in region

Updated 12 April 2025

Arab News

April 12, 2025 21:32

Majid Al-Futtaim has announced an ambitious expansion of its luxury retail portfolio for 2025. Following a record-breaking 2024, which saw a 26 percent growth in its lifestyle business, the expansion will be anchored by renowned Italian brands Eleventy, Corneliani, and Poltrona Frau, with a series of store openings planned across key locations in Saudi Arabia and the UAE.

As part of its strategic growth agenda, Majid Al-Futtaim will launch more than 30 new stores, spanning both luxury and high- street brands across the region. The expansion will include five standalone Eleventy stores, the regional debut of Corneliani, and the first Poltrona Frau store outside the UAE in Saudi Arabia.

Fahed Ghanim, CEO of Majid Al-Futtaim Lifestyle, said: “In a region where customers have an abundance of choice, our ambition is to curate a portfolio of luxury brands that offer something truly distinctive. By introducing brands like Eleventy, Corneliani, and Poltrona Frau, we are bringing new dimensions to the luxury market — combining timeless craftsmanship with modern sensibilities that resonate with the refined tastes of our customers.”

He added: “At Majid Al-Futtaim, our work with luxury brands has been deeply rooted in THAT Concept Store, which has been instrumental in identifying and nurturing brands with the potential to thrive in this market. Eleventy’s journey, from its initial shop-in-shop to standalone stores, is a testament to how we test, scale, and grow global luxury brands. This strategic approach allows us to continuously evolve the luxury retail experience, delivering fresh, distinctive offerings that resonate with our customers.”

The five standalone Eleventy stores opening in key locations this year include Solitaire Mall in Saudi Arabia, Mall of the Emirates, Marsa Al-Arab, which all open this month, with Dubai Mall and The Grove in the UAE to follow later in the year. This growth builds on Eleventy’s successful presence in the region, which includes a shop-in-shop at THAT Concept Store, a pop-up at Mall of the Emirates, and its first standalone location in Marina Mall Abu Dhabi, which opened in November 2024.

Majid Al-Futtaim is further strengthening its partnership with Poltrona Frau, the iconic Italian luxury furniture brand, by introducing its first store in the region outside the UAE at Centria Mall, Riyadh, in May. Poltrona Frau achieved remarkable success in 2024, with its revenue increasing fivefold following the launch of its second UAE store at Mall of the Emirates

Italian luxury menswear brand Corneliani also made its regional store debut in April at Solitaire Mall in the Kingdom. Corneliani is one of Italy’s oldest independent luxury brands, renowned for its meticulous craftsmanship and presence in more than 70 countries.

Marco Baldassari, co-founder and menswear creative director at Eleventy, said: “Eleventy’s philosophy of understated elegance and commitment to sustainability resonates strongly with the sophisticated Middle Eastern consumer. We are excited to strengthen our partnership with Majid Al-Futtaim, whose visionary approach to luxury retail is shaping a new vision with a growing focus on customer needs. Together, we aim to redefine luxury retail by offering timeless craftsmanship, sustainable practices, and innovative experiences.”

Nicola Coropulis, CEO of Poltrona Frau, said: “Since partnering with Majid Al-Futtaim more than two years ago, we have focused on strategic growth and elevating the customer experience across the region. The revitalization of our flagship store in Jumeirah and our successful debut at Mall of the Emirates have been key milestones in our journey. We are now excited to bring this momentum to the Kingdom of Saudi Arabia with our first store in Riyadh, further solidifying our presence in the GCC and expanding our reach in this dynamic market.”

Majid Al-Futtaim’s expansion in luxury retail builds on a record-breaking 2024, which saw a 26 percent increase in revenue across its portfolio and a 31 percent surge in digital sales. The year also marked the opening of 17 new stores across the region, bringing the total to 87 stores, including flagship locations for brands such as lululemon, Psycho Bunny, Shiseido, Crate and Barrel, and CB2, alongside 27 e-commerce platforms. Looking ahead, 2025 is set to be another milestone year for its lifestyle business, with plans to open 30 new stores across the region, including seven in Saudi Arabia — a key priority market for the group.

Lulu reports Q1 2025 revenue of $2.1 billion, up 7.3% year-on-year

Updated 15 May 2025

Arab News

May 15, 2025 17:33

Lulu reports Q1 2025 revenue of $2.1 billion, up 7.3% year-on-year

Updated 15 May 2025

Arab News

May 15, 2025 17:33

Lulu, the largest and fastest-growing pan-GCC full-line retailer, has announced its financial results for the three months ended 31 March.

Its key highlights are:

Q1 2025 revenue of $2.1 billion, up 7.3% YoY, with like-for-like sales up 3.6% YoY driven by strong sales during Ramadan and volume growth in certain product categories.
EBITDA of $214.1 million, up 6.4% YoY, with EBITDA margin of 10.3%, stable vs. Q1 2024.
Net profit of $69.7 million, up 15.8% YoY, with net profit margin of 3.4%, up 25 bps vs. Q1 2024.
Good strategic progress with five new stores opened in Q1 2025 including in Makkah and Madinah, with the target for 20 new stores in 2025 unchanged.
E-commerce sales grew strongly, up 25.3% YoY to $93.4 million; now 4.7% of retail revenue.
Strong growth in revenue from Private Label products, up 9.5% YoY; 29.3% of retail revenue.
Happiness loyalty program members reached c.6.3 million in Q1 vs. c.5.5 million in FY24; linked to 65% of sales.

Saifee Rupawala, chief executive officer of Lulu, said: “We are pleased to have demonstrated good growth in the first quarter of this year, with revenue up 7.3% YoY.

"This was underpinned by a combination of like-for-like sales growth, supported by strong trading during the Ramadan period, and our store rollout program, which remains well on track with five stores opened in the quarter, in line with our plan to roll out a total of 20 stores in 2025.

"The first quarter also saw Lulu make good progress on delivering on our overall growth strategy, supported by robust sales in Private Label and e-commerce, which remain key components of our strategy.”

Rupawala added: “Looking ahead, we expect our growth momentum to continue as we remain focused on several initiatives under each of our four key pillars, including driving growth in existing store network, opening new stores, driving operational efficiencies and delivering further upside through our private label and e-commerce offerings.

"Overall, we are pleased with the performance in the first quarter, marking a good start to 2025, and we look forward to continuing to deliver on our strategy throughout the rest of the year.”

Financial summary

Fresh food category revenue grew 7.9% YoY in the first quarter, driven by the Ramadan period, improved consumption trends.
The electrical goods category witnessed revenue growth of 29.0% YoY, mainly due to an increase in sales across higher value items.
Lifestyle products grew 6.9% YoY despite pressure as customers opted for more value products.
Consumer Packaged Goods sales grew steadily at 1.4% YoY, with the sales increase mainly driven by strong volume growth, which was partly offset by some pricing pressure as a result of promotional campaigns.
E-commerce remains an important component of Lulu’s growth strategy, with sales +25.3% YoY and customer count +26.1% YoY.

Lulu delivered revenue growth across all segments in Q1 2025, with particularly strong performances in Saudi Arabia and Oman.

The UAE, Lulu’s largest market, recorded a mid-single-digit revenue increase of 5.2% YoY, led by particularly strong performance in the fresh food segment, which grew 15.6% YoY. This was further supported by strong e-commerce sales in the UAE, which saw robust growth, rising 40.1% YoY, supported by an increase in sales through aggregators.
In Saudi Arabia, revenue rose by 10.3% YoY, primarily driven by new store openings in the last 12 months and strong LFL growth.

Other key markets also delivered solid results in Q1 2025, with revenue in Oman increasing 7.8% YoY as a result of strong growth in the electrical goods product category, Qatar up 6.7% YoY following a good trading period during festive season, and Kuwait up 4.8% YoY, with supermarket sales contributing c.50% of overall growth in the region, further supported by a strong uptick in e-commerce sales.

Gross profit increased 4.0% YoY to $464.5 million, with gross margins reaching 22.3% in the period, down 70 basis points compared to the prior year.

This margin reduction was mainly due to promotional campaigns to drive higher footfall into Lulu stores during the festive period.

EBITDA grew 6.4% YoY to $214.1 million, supported by improved operational cost efficiencies, which helped offset the lower gross margin.

As a result, Q1 2025 EBITDA margin remained broadly stable at 10.3% compared to 10.4% in Q1 2024. On a post-lease expense basis, EBITDA margin improved by approximately 8 bps, reflecting Lulu’s continued operational discipline.

Net profit increased by 15.8% to $69.7 million, with net profit margins improving by 25 basis points as a result of stronger EBIT margin and lower interest expense, despite higher taxes in the period.

During the quarter, net debt decreased to $2.3 billion, with net debt/EBITDA improving from 3.2x in December 2024 to 2.9x at the end of Q1 2025. Excluding lease liabilities, leverage improved from 1.3x to 0.9x over the same period.

Lulu continues to make good progress on delivering on its growth strategy, having rolled out five new stores in the period, delivered good LFL growth within its existing stores and also benefiting from further upside opportunities across Private Label and e-commerce sales.

During Q1 2025, Lulu opened two hypermarkets and three express stores, adding 22,339 square meters of retail space in the period, with the company’s total retail space up 2% to 1.34 million square meters, as at the end of Q1 2025.

Within this, Lulu was pleased to open an over 10,000 square meter hypermarket in Makkah and an express store in Madinah, two uniquely located stores with high footfall given the proximity to holy sites.

In addition to the two stores in KSA, Lulu also opened two express stores in the UAE, alongside a hypermarket in Bahrain. Lulu remains on track with its store rollout plans, with the company expecting to open a total of 20 stores in 2025, with the remaining 15 stores expected to open over the year.

Lulu is also pleased to have signed a memorandum of understanding with Awqaf Dubai for the development of a group of retail stores as part of Dubai’s endowment projects.

Under the partnership, Lulu will collaborate with Awqaf Dubai on upcoming community projects to develop shopping facilities that will better serve and enhance the retail experience of residents and visitors, while also contributing to Awqaf’s broader social and economic objectives.

Following the successful rollout of its loyalty program across all regions in 2024, Lulu’s Happiness Loyalty program continues to see good momentum in new members.

Hyundai Motor Manufacturing Middle East celebrates groundbreaking milestone

Updated 15 May 2025

Arab News

May 15, 2025 15:40

Hyundai Motor Manufacturing Middle East celebrates groundbreaking milestone

Updated 15 May 2025

Arab News

May 15, 2025 15:40

Hyundai Motor Manufacturing Middle East, a joint venture between PIF and Hyundai Motor Company, hosted its groundbreaking ceremony in the King Salman Automotive Cluster within King Abdullah Economic City.

The ceremony is a significant milestone that marks another step in the development of the automotive industry in Saudi Arabia.

PIF owns a 70% stake in HMMME, with Hyundai holding the remaining 30 percent.

The manufacturing plant, Hyundai's first facility in the Middle East, will roll out its first vehicle by the fourth quarter of 2026 and targets an annual production of 50,000 vehicles.

This will include both internal combustion engines and electric vehicles.

Yazeed A. Alhumied, deputy governor and head of MENA Investments at PIF, said: “This groundbreaking is a significant milestone for PIF as it further strengthens the automotive industry in Saudi Arabia.

"PIF will continue to enable and accelerate the growth of Saudi Arabia’s automotive ecosystem through partnerships. This joint venture underscores PIF’s commitment to build local capabilities, attract cutting-edge technology, and create highly skilled jobs in Saudi Arabia’s automotive and mobility sector.”

Jaehoon Chang, Hyundai Motor Group vice chair, said: "Today's groundbreaking marks the beginning of a new chapter for both the Kingdom and Hyundai Motor Company, as we lay the foundation for a new era of future mobility and technological innovation.

"Through our joint venture, we hope to contribute to the development of talent in the region with advanced skills and capabilities under Saudi Vision 2030."

Wongyun Park, vice president and CEO of Hyundai Motor Manufacturing Middle East, said: "With HMMME, we are driving change forward and paving the way for a new industrial future in the region. The facility will become a platform for growth and industrial excellence in the heart of the Kingdom."

HMMME is building a foundation for a new era of automotive manufacturing in Saudi Arabia.

Harnessing the skills of the local workforce, the new manufacturing plant will create thousands of jobs and allow for knowledge transfer and skills development.

The localization of Hyundai's vehicles will accelerate the growth of Saudi Arabia's automotive and mobility ecosystem and pave the way for a new industrial future.

This partnership is one in a series of PIF initiatives establishing Saudi Arabia as a global automotive player.

Together, these initiatives are driving transformation in the sector and boosting domestic manufacturing capabilities, infrastructure, and supply chains.

Diriyah welcomes Trump to the birthplace of Saudi Arabia

Updated 15 May 2025

Arab News

May 15, 2025 15:34

Diriyah welcomes Trump to the birthplace of Saudi Arabia

Updated 15 May 2025

Arab News

May 15, 2025 15:34

Crown Prince Mohammed bin Salman welcomed US President Donald Trump on Tuesday evening in Diriyah.

During his official visit, Trump toured the UNESCO World Heritage site of At-Turaif, the historic birthplace of the Kingdom, the capital of the First Saudi State, and the ancestral home of the Al-Saud royal family.

Diriyah is located adjacent to the capital city of Riyadh and is a transformative destination contributing to Vision 2030, with At-Turaif standing as a cornerstone of Saudi Arabia’s rich heritage and a symbol of its ambitious future.

Trump was briefed on the significance of At-Turaif and enjoyed a traditional Saudi Samri performance before posing for a commemorative photo in front of Salwa Palace, one of Diriyah’s iconic historical landmarks and once the seat of government.

Commenting on the visit, Jerry Inzerillo, GCEO of Diriyah Company, said: “It was a tremendous honor for us in Diriyah to have hosted President Trump on his visit to At-Turaif, the birthplace of the Kingdom of Saudi Arabia and the ancestral home of the Al-Saud royal family – a place where we celebrate the past and are building the future.

“It was also a unique opportunity to present our future vision for Diriyah and to share with the president the three centuries of history echoing through the palaces and passageways of At-Turaif. President Trump expressed his admiration for what he saw and experienced during this exceptional visit to Diriyah.”

This marks Trump’s first visit to At-Turaif and the Diriyah project.

The site was under restoration during his first official visit to Riyadh during his initial presidential term.

He now joins a distinguished list of world leaders who visited Diriyah in the past year, including French President Emmanuel Macron, UK Prime Minister Keir Starmer, and Bhutan’s king.

Trendyol and Zid partner to drive revenue growth and expansion for SMEs in KSA, UAE

Updated 15 May 2025

Arab News

May 15, 2025 10:35

Trendyol and Zid partner to drive revenue growth and expansion for SMEs in KSA, UAE

Updated 15 May 2025

Arab News

May 15, 2025 10:35

Trendyol, one of the world’s fastest-growing e-commerce marketplaces, and Zid, Saudi Arabia’s leading e-commerce enablement platform, have partnered to accelerate growth opportunities for merchants in the Kingdom and UAE by providing them with the tools to increase reach, scale, and grow digitally. This strategic partnership with Zid enables sellers to connect their stores to Trendyol, giving them instant access to over 3 million customers on the platform.

“Our focus has always been on empowering local businesses and enhancing the regional e-commerce ecosystem,” said Mohamad El-Ansari, CEO, Trendyol Gulf. “Zid shares many core values with us — from being a digital-first business to aiming to make a real impact on the local community and contributing toward the economic development of the region. This partnership opens new doors for brands and entrepreneurs to grow and marks an important step toward our longer-term ambition of enabling two-way commerce to and from Saudi. We’ve already welcomed 1,000 local SMEs to our platform in a short time, and with Zid, we’re well positioned to expand that reach and support even more businesses in their digital journey.”

Zid supports sellers to grow through a unified approach to digital and physical retail. The integration with Trendyol delivers on Zid’s Total Commerce vision, enabling merchants to manage every sales channel — online, offline, physical stores, and social commerce — through a single platform.

“With Trendyol as a key sales channel, Zid merchants can now set up their store and seamlessly sync their inventory, product listings, logistics, and payments, gaining access to one of the region’s fastest-growing digital marketplaces with millions of active, purchase-ready shoppers. Through Zid’s unified dashboard, they can manage all sales channels in one place, online and offline. “This powerful integration expands access to high-growth markets while equipping merchants with the tools and insights they need to scale. It reflects our commitment to being a catalyst for growth, unlocking regional opportunities for our merchants,” added Mazen AlDarrab, CEO of Zid.

This collaboration reflects Trendyol’s ongoing commitment to building a localized, inclusive marketplace that meets the evolving needs of Gulf consumers and businesses. As the company continues to grow its partner ecosystem, it remains focused on enabling more brands to scale seamlessly and succeed in the digital economy, as well as grow across borders.

Saudi brands eyeing global expansion get boost at expo

Updated 14 May 2025

Arab News

May 14, 2025 22:17

Saudi brands eyeing global expansion get boost at expo

Updated 14 May 2025

Arab News

May 14, 2025 22:17

The first International Floating Franchise Exhibition concluded its events with remarkable success aboard the luxurious Aroya Cruise, with wide international participation from representatives of 24 countries. Held under the patronage of the Federation of Saudi Chambers, the event witnessed the signing of several international and local agreements aimed at enhancing the global presence of Saudi brands and positioning the Kingdom as a regional and global hub for franchise business.

The closing ceremony commenced with a keynote speech highlighting the Saudi identity and its mission to promote a global culture of business through the initiative “Saudi Franchise to the World,” which served as the central theme of the exhibition.

During the event, cooperation agreements were signed between the National Franchise Committee and entities from several countries including the UK, South Korea, South Africa, and China, as part of a broader effort to support the international expansion of Saudi brands and attract foreign investments. In addition, local agreements were signed with key government entities such as Monsha’at (Small and Medium Enterprises General Authority) and the Social Development Bank, to strengthen the infrastructure of the franchise sector within the Kingdom.

In his closing remarks, Dr. Khalid Al-Ghamdi, chairman of the National Franchise Committee, emphasized the exhibition’s strategic objectives, including:

• Launching a specialized investment fund to support Saudi brands and empower their expansion into international markets.

• ntroducing an interactive digital platform designed to connect Saudi brands with global investors, providing qualification, marketing, and technical support services to streamline international franchising.

• Establishing a national company for the alliance of Saudi brands, aimed at facilitating collective global expansion through strategic partnerships, joint procurement, and service integration.

The closing ceremony also included the recognition of sponsoring companies, government and international partners, and the Saudi Restaurants and Cafes Owners Association, in appreciation of their vital role in the exhibition’s success.

Dr. Al-Ghamdi announced that preparations are underway to host the next floating exhibition in Istanbul, further reflecting the committee’s commitment to expanding the global footprint of Saudi franchising.

He concluded by expressing his sincere gratitude to the team at the Federation of Saudi Chambers, and the crew of Aroya Cruise, a subsidiary of the Public Investment Fund, praising their dedication and outstanding efforts in delivering this exceptional event.

The exhibition ran for three days, featuring 10 interactive workshops led by experts from various countries, alongside showcases of a wide array of Saudi brands eager to expand internationally — all aligning with Saudi Arabia’s Vision 2030, which seeks to establish the Kingdom as a global center for franchising.

Majid Al-Futtaim expands luxury retail footprint in region