Business | Investment
Union Coop to build largest hypermarket in Middle East
Union Coop will spend Dh120 million to build the largest hypermarket in the Middle East, a company manager said.
- By Nermeen Alireza, Staff Reporter
- Published: 00:00 April 5, 2005
Union Coop will spend Dh120 million to build the largest hypermarket in the Middle East, a company manager said.
Situated in Al Barsha, near the Mall of the Emirates, the grounds of the Union Coop Hypermarket will measure 52,000 square metres.
The hypermarket alone will measure 18,000 square metres. The largest existing supermarket in Dubai, owned by Carrefour, measures 11,000 square metres.
"This outlet is [projected] to generate Dh1.5 million per day [in sales] and to serve between 15,000 and 20,000 customers," Khalid Humaid Al Falasi, assistant general manager of Union Coop, told Gulf News.
With sales increasing year on year, reaching Dh715.7 million in 2004, the management of Union Coop sees this new step as the answer to the increasing competition it faces.
"Multinational companies have arrived, such as Carrefour and Géant, so if we don't change and become one of the big guys, they will beat us.
"Competition is getting tougher, and you need to differentiate yourself. The giant has awakened," Al Falasi said.
Construction of the hypermarket is set to begin in July. It will open its doors in August 2006.
The leasing of over 100 shop and restaurant spaces has already reached 100 per cent capacity, Al Falasi said.
The project is part of a five year, Dh380 million strategy adopted in 2004 by the Union Coop Management.
In addition to the hypermarket, two new Union Coop branches will open in August, bringing the total number in Dubai to nine.
According to Al Falasi, this expansion boom has been a long time coming for the 23-year-old organisation.
"We've lost so much ground. We've built only seven outlets in this time.
"But the management was changed three years ago and we need to lock the market and gain as much ground before other people move in," Al Falasi said.
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