ABU DHABI: Lulu Retail Group, one of the UAE’s leading retail giants, is set to expand its presence in the outskirts of major cities as part of a strategic move to meet the growing demand driven by the country’s rapidly expanding population.
Senior officials revealed that the company is planning to open 15 new projects across Dubai and the Northern Emirates in response to the increasing migration of residents from city centers to suburban areas.
Yusuffali MA, founder of Lulu Group, highlighted the company’s expansion strategy, which is based on the population growth in these outlying areas. “Fifteen new projects are coming in Dubai and the Northern Emirates.
The population is growing from towns to outskirts in all the major cities of the UAE, therefore, we are exploring those areas. Whether it will be a hypermarket or an express store, it will depend on the density of the population of those areas,” said Yusuffali.
The rapid population growth in the UAE, particularly in cities like Dubai, Abu Dhabi, and Sharjah, has been fueled by the influx of foreign workers.
However, the soaring rents in downtown and central districts have led many residents to seek more affordable housing options on the outskirts, contributing to the rise in demand for retail spaces in these areas.
Saifee Rupawala, CEO of Lulu Retail, emphasized that the expanding population and shifting demographics present a significant opportunity for growth.
“We are in discussion with several developers. We thank the main developers who have considered us as a cornerstone and put trust in us to have Lulu everywhere in the UAE,” Rupawala said. “We have 30 projects under discussion in the UAE, but they are not yet finalized.”
Beyond the UAE, the company has also set its sights on expanding its operations in Saudi Arabia. “We are pan-GCC number one retailer, so we need to grow in Saudi Arabia,” Rupawala explained.
The group plans to open 37 new stores in Saudi Arabia, with a target of 100 stores by 2028. Lulu is currently present in 16 cities in the Kingdom, and the company sees substantial room for growth, particularly as Saudi Arabia pushes for more organized retail under its Vision 2030 plan.
As Lulu continues to expand across the UAE and GCC region, it will also contribute to the creation of thousands of new jobs.
The company revealed in its IPO prospectus that a hypermarket typically employs around 290 individuals, while express stores hire approximately 55 and mini-markets require three employees.
As of June 30, 2024, Lulu employs around 55,000 full-time staff members, with more job opportunities on the horizon.
Rupawala also spoke about new developments in Kuwait, where the company is set to be the first retailer in two new towns. “It’s exciting times as the UAE and GCC region is growing,” he noted.
Lulu’s expansion plans include the opening of new stores in key areas such as Al Jaddaf, JLT, Nad Al Hammar, Dubai Expo City, Khorfakhan, and Oud Al Mutina.
The company recently opened its 252nd store in the GCC at Al Satwa, Dubai, marking the 23rd store since Lulu went public.
With these plans in motion, Lulu Retail Group is poised to strengthen its foothold across the GCC, bringing jobs and retail services to emerging communities in the UAE and beyond.