Beyond Carrefour: HyperMax, Faces, Tryano, Tribe of 6 change how you shop

Dubai: The Gulf’s biggest retail groups have been quietly rewriting their business models. International franchises once symbolized scale and credibility across the GCC. Today, home-grown brands increasingly sit at the center of expansion plans.

Dubai: The Gulf’s biggest retail groups have been quietly rewriting their business models. International franchises once symbolized scale and credibility across the GCC. Today, home-grown brands increasingly sit at the center of expansion plans.

The shift reflects a push for better margins, tighter supply chains, and faster responses to regional change. It also gives conglomerates more freedom to pivot during geopolitical shocks. Over the past three years, that freedom has moved from optional to operationally critical.

Industry research now places competitive pressure at the heart of the change. Alpen Capital said in its GCC Retail Industry Report: “Intensifying competition is causing operators to adopt aggressive promotional strategies that are impacting profit margins… while niche platforms and local players are gaining prominence.”

Majid Al Futtaim’s transition from Carrefour to its own HyperMax banner signaled the scale of the change. Several other groups now run parallel strategies, launching regional concepts alongside foreign franchises. The result is a retail landscape where local ownership carries increasing strategic weight.

Alshaya Group built its empire by bringing Western brands like H&M and Starbucks to the Middle East. It added Tribe of 6 in 2022, a home-grown sustainable athleisure label designed for regional consumers. The brand targets Middle Eastern climate needs and aesthetics while leaning on a more localized supply chain.

The move reduces reliance on global logistics networks. It also gives Alshaya direct control over pricing, production, and product cycles. Tribe of 6 reflects a shift from pure operator to brand creator.

Chalhoub Group has taken a similar path, evolving beyond luxury distribution. Faces, formerly Wojooh, moved from global perfume distribution into a regional multi-brand beauty retailer. Tryano followed as a home-grown luxury department store concept at Yas Mall in Abu Dhabi.

Tryano allows Chalhoub to shape the entire retail experience. It reduces constraints typically embedded in foreign franchise agreements. The strategy positions the group as both landlord partner and brand architect.

In Saudi Arabia, Savola Group expanded Panda and HyperPanda as fully Saudi grocery brands. The chain grew steadily while international competitors like Spar and Carrefour entered the market. Panda has increasingly moved into high-traffic locations, some of which previously hosted foreign banners.

The local identity became a commercial advantage for Panda. It strengthened consumer familiarity and streamlined sourcing. Over time, Panda established itself as one of the Kingdom’s largest grocery operators.

Apparel Group has focused its local strategy on building and scaling owned or regionally-operated brands. It expanded Beverly Hills Polo Club as a major value-fashion brand across the GCC. While the name sounds American, Apparel Group operates the brand locally and adapts collections for Gulf consumers.

That operating control has helped embed the brand into mall networks across the region. It also gives the group more flexibility across design, sourcing, and pricing. The approach mirrors the wider shift toward brand ownership.

The franchise-to-local transition now defines GCC retail strategy. Majid Al Futtaim’s HyperMax rollout, Alshaya’s Tribe of 6, Chalhoub’s Faces and Tryano, and Apparel Group’s brand operations all reflect the same logic. Groups want greater brand autonomy.

The shift accelerated sharply between 2023 and 2026. What began as private labeling a decade earlier has matured into selective banner replacement. Global names increasingly sit alongside, rather than above, local identities.

Three economic pillars drive the change. Margin expansion sits first. Retail franchise agreements commonly require operators to pay ongoing royalties tied to sales.

By running its own brand, a group keeps that revenue. In grocery, where margins are structurally thin, retaining even small percentages can materially affect performance. HyperMax allows Majid Al Futtaim to internalize more of that value.

Supply chain sovereignty follows closely. Franchise contracts often mandate purchasing from approved global suppliers. Home-grown brands allow retailers to source more directly from local farmers and SMEs.

That reduces shipping costs and food miles. It also insulates operations from global logistics shocks that disrupted the sector in recent years. For many groups, local sourcing has become a core risk strategy.

The third pillar is geopolitical resilience. Global brands sometimes face localized consumer backlash tied to perceived political positions. Local brands lower that exposure.

They present culturally neutral identities rooted in domestic investment. For large portfolios, that perception now carries measurable commercial value.

The evolution unfolded in three phases. Between 2010 and 2019, retailers like LuLu and Carrefour expanded white-label basics. Milk, bread, and staples tested consumer trust.

The pandemic years from 2020 to 2022 forced a sharper turn. Supply disruptions pushed groups like Alshaya and Chalhoub to prioritize local sourcing. Retailers accelerated development of owned concepts during this period.

By 2024, the market entered what executives describe as a mass pivot. International banners began to retire in select markets. Local identities moved from supporting roles to lead positions.

Property advisers say the implications extend beyond retailers. Cushman & Wakefield wrote in its report Beyond Global Chains: “The shift is impacting strategies for both landlords and tenants; local brands are no longer secondary players, but key drivers of footfall, engagement, and long-term asset value.” That assessment increasingly informs leasing strategies across the GCC.

Consumer research supports the commercial case. PwC Middle East’s Voice of the Consumer 2025 report found 47% of Middle East consumers used local retailers. That figure exceeded the global average of 45%.

The report linked purchasing decisions to origin and cultural relevance. It found local identity increasingly differentiates grocery and retail brands. For operators, that sentiment strengthens pricing power.

Fortune Business Insights reached similar conclusions in its 2025 MENA retail analysis. The firm said retailers are expected to localize operations and diversify offerings around regional preferences.

The study pointed to tailored goods and services as growth drivers through 2032. It also highlighted localization as a structural, not cyclical, shift. That framing aligns with recent luxury market signals.

Chalhoub’s internal research echoed the theme. Following its “GCC Personal Luxury: Unstoppable” report, chief strategy officer Jasmina Banda said the sector continues to show resilience. She highlighted “tremendous potential” for regional groups to create their own concepts and tap market gaps.

The Gulf’s retail story now centers on ownership, not distribution. Home-grown brands offer control over margins, messaging, and supply chains. For the region’s largest conglomerates, that control has become the new competitive edge.