This UAE retailer among world’s 50 fastest growing
Abu Dhabi-headquartered Lulu Group International has ranked among the 50 fastest-growing retailers in the world in a Deloitte Global survey.
The group, which owns LuLu Hypermarket chain, has also featured among the top 250 global retailers in the Global Powers of Retailing 2017: The art and science of customers report released by the leading international auditing firm on Thursday.
Majid Al Futtaim Holding was the only other UAE-based company to make it to the rankings by taking the 160th place.
Saudi Arabia’s Savola Group also appeared in the report making the total number of retailers to be ranked from the Middle East and Africa three.
Nonetheless, no regional company showed up in the rankings of top 50 e-retailers.
133 and still growing
Founded by Indian businessman M. A. Yousuf Ali, the LuLu Group ranked at the 153rd place with a $6.2 billion annual retail revenue for the year 2015. It came at 27th position in the growth ranking.
The group has 133 stores including hypermarkets and supercenters, and has presence in 9 countries in Asia and Middle East.
The group opened its eighth hypermarket in Saudi Arabia in the north-western city of Hail on Sunday. It has plans to open 20 new stores by 2020.
Despite the poor show on the rankings in which North America represented more than one third of all top 250 companies, the MEA region remains an attractive destination for retailers, according to Deloitte.
The region’s 19.1 per cent growth rate and 5.8 per cent net profit margin were the highest among the five geographic regions in the financial year of 2015.
American retailing giant Wal-Mart Stores topped the rankings with an annual revenue of $400 billion in 2015.
The top 250 global retailers generated aggregated revenues of $4.31 trillion in, representing composite growth of 5.2 per cent.
However, the report finds that 2017 will be yet another challenging year for retailers.
“Slow economic growth in major developed economies, high levels of debt in emerging countries, deflation or low inflation in rich countries and a protectionist backlash against globalization were among dynamics which contributed to a challenging economic environment for retailers,” says Dr. Ira Kalish, Deloitte Global Chief Economist.
“And yet people still need to shop, so the industry carries on. In some places and with some cohorts of shoppers, the outlook for retailers is favourable.”