Abu Dhabi-based retail giant Lulu has unveiled plans to open 100 new stores across the GCC countries over the next five years, a move that is expected to generate thousands of jobs. Yusuffali MA, the founder, chairman, and non-executive director of Lulu Retail, made the announcement during a press conference where the company's massively oversubscribed initial public offering (IPO) was also revealed.
"The GCC is a robust economy, and as a pan-GCC retailer, we see a growing population that demands more retail outlets," Yusuffali stated. The IPO, which was increased from 25% to 30% of the company's shares, was oversubscribed by 25 times and is set to list on the Abu Dhabi Securities Exchange on November 14.
Saifee Rupawala, CEO of Lulu Retail, further elaborated on the expansion plans in an interview with Khaleej Times. He revealed that 91 stores are already in the pipeline, with discussions ongoing that could potentially bring the total to 100. "Currently, we employ 50,000 staff across our 240 stores. With 91 more stores on the horizon, job creation is inevitable," Rupawala noted, though he acknowledged it would be challenging to pinpoint the exact number of new hires due to varying store sizes.
Lulu Retail, which operates hypermarkets and supermarkets in various countries, anticipates that the addition of 100 new outlets will create thousands of new jobs across the region. The retailer has also identified the UAE and Saudi Arabia as key markets for growth and expansion, driven by the increasing expatriate population in these countries.
In addition to traditional retail expansion, Lulu is exploring autonomous store technology and plans to roll out this innovation once trials are complete. This service is expected to be introduced in smaller stores initially. The company currently serves over 600,000 shoppers daily across its 240 outlets, sourcing products from 85 countries worldwide.
Yusuffali expressed gratitude for the trust and confidence placed in the Lulu brand by UAE and GCC leaders. He explained that the decision to increase the IPO from 25% to 30% was driven by overwhelming demand from international and regional investors. "Our IPO was oversubscribed within an hour of its launch, and we quickly realized it was one of the largest IPOs globally for the year," Yusuffali concluded.
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