Dubai-based Al Sayegh Brothers is investing more than Dh100 million in retail expansion that will oversee the development of 40 new concept retail stores by 2008, said a senior company representative.
The company which has experienced 20 per cent year-on-year growth in the last few years, has an annual turnover exceeding Dh400 million, of which its retail earnings would gross Dh100 million.
This move is part of the company's ambitious expansion as the country's retail sector is witnessing both qualitative and quantitative change.
In 2004, the UAE's retail area was estimated to have reached 21.4 million square feet, of which approximately 60 per cent was located in shopping malls, according to Godo Research and Marketing Consultancy (GRMC).
Dubai attracted 88.5 million visits to malls, representing 52 per cent of the total UAE visit base, GRMC said in its report.
Shahzad Ahmad, Al Sayegh Brothers' Group Marketing director and head of Retail, told Gulf News: "With 23 million square feet of retail space opening up to consumers by 2008 and in flow of tourist traffic set to increase 10 times from the present 4 million in the next 10 years, branded retail is going to be our ticket to future growth.
"We already have a portfolio of world leading electronics brands with us. I think it will be a missed opportunity if everyone else continues to make money on our products while we remain in trading and distribution only."
Established in 1980 by Abdul Jabbar Al Sayegh and Ahmad Al Sayegh, the group has today evolved into a thriving multinational, multi-faceted company.
Comprising 100 per cent wholly owned companies, divisions, and joint ventures, the group's current product portfolio is a judicious mix of reputable brands and innovative new products and services.
Al Sayegh Brothers Group are at present the master distributors Electronics including Plasmas, LCDs, mobiles and entertainment electronics Olympus opto-digital products such as cameras and binoculars, SAGEM mobiles, AIWA electronics and Sharp, among others.
"Our portfolio in entertainment electronics is very strong," said Shahzad.
"Therefore as a strategic move aimed towards future growth, we decided to move into the branded retail business offering a one stop experience for all entertainment needs.
"Showcasing both hardware and software and addressing all age groups and ethnicities, this new brand is in the making and is scheduled to be unveiled early next year."