Electronics retailer Sharaf DG to open five new showrooms in Gulf

Dubai: Sharaf DG, one of the largest electronics retailers in the Gulf region, has embarked upon a major expansion plan to double its showroom space for which it is currently in the process of adding five new showrooms in the region by the end of this year.

Of the five new outlets, four will be in the UAE and other in Bahrain. "We are also looking into other markets such as Saudi Arabia and Kuwait. By the end of the next calendar year we will have at least 20 outlets in the region. That will help up to stake claim as the largest electronics retailer in the region. The current expansion plan is geared towards that," said Yasser Sharaf, managing director of the company.

In Dubai, new Sharaf DG shops are coming up in Dubai Mall, at Mankhool and another one in the new Union Co-operative hypermarket that is being built behind Shangri-La Hotel on Shaikh Zayed Road. The fourth shop is located in Sharjah's Safeer Mall. All the shops are scheduled to open by September this year.

Sharaf feels the current economic boom will enable the company to sustain its profit level for some time at least. He said the development that is happening in the region is mostly concentrated in the real estate and tourism sectors, which is attracting people from all over the world for short and long stays. That is creating a necessity for home and industrial electronic appliances.

"All of this is a market for us and it is growing. The industry is growing [overall electronics] by seven per cent when the market is stable," said Sharaf.

Sharaf DG has a retail space of 154,000 square feet now. That will grow by 150,000 square feet after conclusion of the current expansion plan. The company has lined up several "themed promotions" to make the best of the increased demand that is seen with the start of the festive season that usually begins with Dubai Summer Services and ends with Christmas, with Gitex and Dubai Shopping Festival in between.

Nilesh Khalkho, chief executive of Sharaf DG, said despite costs on all heads moving up, the company grew by 400 per cent last year in revenue terms, mainly because it opened more stores. "In two years from 2005, when we started, to 2007 we have grown 700 per cent."

Sharaf DG made a net profit of 15 per cent last year, informed Khalkho, adding that this year the company expects its revenues to grow by 100 per cent and net profit to remain steady at last year's level.