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Dubai's Landmark Group to invest $1 billion in 400 new stores across UAE, GCC, India

The group will also invest in e-commerce, supply chain and new technologies as it looks to boost revenues and create hundreds of jobs

Published: Tue 12 Nov 2024, 1:47 PM

Updated: Tue 12 Nov 2024, 4:09 PM

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The Dubai-based conglomerate Landmark Group will invest $1 billion (Dh3.67 billion) in the UAE, GCC, India and Southeast Asia to open 400 new stores over the next three years.

The retail giant, which employs 53,000 people, revealed that the new 400 outlets will create 15 to 20 per cent additional employment opportunities, amounting to 7,950 to 10,600 new jobs in the well-diversified group’s different units.

While speaking during a press conference in Dubai on Tuesday, Renuka Jagtiani, chairwoman of Landmark Group, said the group will also invest in e-commerce, supply chain and new technologies as it looks to boost revenues, which crossed $7 billion during 2023-24 financial year.

“We have been consistently growing and investing in our businesses. In three years, we will be investing more than $1 billion to open 400 new stores. We'll be investing in e-commerce, supply chain, and technology to innovate and upgrade our businesses constantly. E-commerce is a big part of our business, running 12 sites across the Middle East and India,” Jagtiani said during a press conference.

Started in Bahrain in 1973, the retail giant operates 2,200 stores across the UAE, GCC, and other Asian countries. It has 22 brands under its umbrella and a presence in 17 countries. Kabir Lumba, CEO of Landmark Retail, attended the conference.

According to Alpen Capital, retail sales in the GCC are projected to grow at a CAGR of 4.6 per cent to reach $386.9 billion in 2028 from $309.6 billion in 2023. This growth is expected to be supported by an increase in population, a rise in per capita income and a boost in tourism activities. E-commerce is expected to continue to play a critical role as several new players are gaining prominence, and there remains scope for niche platforms to adopt innovative business models to make the GCC retail landscape more competitive.

Brick-and-mortar is key

“We invested a lot in products and supply chain. We run 12 million sqft of warehouses. In Jebel Ali, we set up a $350 million Mega Distribution Centre, the latest semi-automated facility. We believe in brick-and-mortar; therefore, we will continue to invest in our stores. We are investing in new designs for Max and Home Centres,” said the Landmark Group chairwoman.

The company will also expand its supermarket brand Viva into Saudi Arabia, where it plans to open 25 stores.

“In the next 6 months, we plan to have 8 Baby Shop outlets in India. We also see opportunities in logistics and last-mile delivery services. We have a presence in countries which are experiencing good growth. Therefore, we can be positive about the group's growth as well,” she said.

However, Renuka Jagtiani ruled out any plan to take the company public and launch an initial public offering (IPO) as the company enjoys strong cash flow.

“In just 18 months, we have rapidly scaled our last-mile delivery services to handle over 20,000 shipments across Saudi Arabia and UAE for more than 50 clients, with a fleet of over 800 vehicles,” said Kabir Lumba.

“Looking ahead, our vision is to build a leading logistics business by developing our end-to-end supply chain offering, including freight, warehousing and cross-border delivery solutions,” he said.

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