We look at how UAE-based Lulu and Dubai-based Union Coop are expanding in the Middle East.
Lulu opens hypermarket in Saudi Arabia…
As part of its expansion plans, Lulu has opened its 15th hypermarket in Saudi Arabia located in Al Kharj. The 15,000 sq m store is Lulu’s 158th hypermarket globally. The retailer has said the stores features a spacious layout with organised category displays.
LuLu’s chairman Yusuff Ali M A said, “we have already announced that as part of our expansion plans, 15 new hypermarkets will be opened in the Kingdom by 2020 at an investment of SAR1bn (US$266.5m)”.
The retailer has signed an agreement with the Saudi Arabian National Guard to open two shopping centres and seven supermarkets in Dammam and Al Ahsa. It also hopes to open three stores in the National Guard campus before the end of 2019.
…And in Oman
Separately, the company has also opened a store at Wadi al Lawami in Al Khoudh, Muscat. The c. 32,000 sq m hypermarket carries a wide range of groceries, fruits and vegetables and bakery products, amongst others. To drive footfall and encourage shoppers to spend time in-store, LuLu also provides a food court, indoor and outside seating areas and children’s play facilities.
Union Coop to triple retail area by 2022
UAE-based Union Coop is planning to triple its retail selling area to 582,000 sq m by 2022. The retailer expects the expansion will help drive an 84% increase in revenue to AED5.7bn (US$1.6bn). It also hopes the expansion will improve its business opportunities and services to shareholders and consumers.
Chairman Majid Hamad Rahmah Al Shamsi said Union Coop will improve its operational efficiency by implementing initiatives designed to support current stores, develop new stores and boost online sales. He added, “We’re keen to keep up with the changing retail landscape by offering various shopping channels for the convenience and happiness of the consumers, in the form of online shopping, Shopper valet, home delivery and many more services”. Union Coop also hopes to expand outside Dubai in the short term.