MENA: FY results, Egypt

Date : 17 March 2017

As Morocco-based Label’Vie and Qatar-based Al Meera announce full year 2016 results and, in Egypt, Spinneys and Tawfeer for Food Products discuss expansion plans, we round up news from the region.

Label’Vie enjoys robust growth in 2016

Label’Vie saw total revenues rise 12.3% to MAD7.557 bn (US$749.5m). The company said that the additional sales were driven by a mixture of like-for-like growth and the addition of new stores in 2015 and 2016. Label’Vie’s expansion saw it add 16,700 sq. m of selling space in 2016.

In 2017 the retailer said it was aiming to open 15 new stores as it looked to build out its national coverage. During 2017 Label’Vie said it would invest MAD764m (US$75.8m), with continued expansion in the medium term set to see it invest about MAD600m (US$59.5m) annually. To do this Label’Vie said it was particularly targeting the north of the country for new stores. One of the new stores will be under the Carrefour Gourmet concept, which Label’Vie said it was aiming to open in Q2.

Al Meera sees sales rise 6.3% in 2016

Al Meera said sales rose 6.3% to QAR2.6 bn (US$714.6m) in 2016, aided by the addition of new stores. At the end of 2016 it said it had 47 stores, 42 in Qatar and five in Oman, with 68,000 sq. m of selling space. The retailer is aiming to open 14 stores in Qatar as part of an expansion programme announced in 2015. Al Meera has identified 11 sites, with a memorandum of understanding signed in 2016 for six sites. In Oman it said that it had opened a 1,800 sq. m supermarket, taking its presence to five stores.

Spinneys to expand in Upper Egypt

Spinneys has opened a new 1,600 sq. m store in Upper Egypt, in the Cityscape Mall in Menya. The retailer’s chief executive, Mohanad Adly, said the store represented its ‘ongoing commitment to the Egyptian market’, which has seen it triple its store base in recent years. The store in Menya marks Spinneys’ expansion into its fifth city in the country, adding to its presence in Cairo, Alexandria Giza and Hurghada. At the opening Spinneys said it was planning to open a further four stores in 2017, adding to the four it added in 2016.

Tawfeer sets out ambitious expansion plans for Egypt

Tawfeer for Food Products, which operates the Kazyon fascia, has said it is aiming to open more than 100 stores in Egypt in 2017. At the end of 2016 there were 175 Kazyon stores, which had grown to 185 by March 2017. The expansion plans are part of its aim to open 1,000 over the next five years as it looks to become a nationwide retailer. To support this pace of growth the retailer’s head of marketing, Ismail Hafez, said that it was looking for new warehouses in the Delta and Lower Egypt.

Mars Hypermarket opens its largest store in Oman

Mars Hypermarkets has added a new c. 18,500 sq. m hypermarket in Al Khoudh, its 18th across Oman and UAE. Mars International’s managing director, V T Vinod, said: “With a spacious area, the new outlet has been stocked with the best brands, both domestic and international, at reasonable prices.