LuLu capitalises on Saudi economic boom

Dubai: LuLu Hypermarkets has anchored itself firmly to the Saudi retail landscape with the opening of a 100,000 square foot facility in Riyadh.

The centre called LuLu Shopping is located in Rabwa, on exit 14 of Omar Bin Abdul Aziz Road. It is the chain's second outlet in the kingdom after the first one in Al Khobar.

"We have to expand aggressively here as the nation is investing in its industries — that mean more jobs and business," said Yousuf Ali M.A., managing director of the LuLu Group.

The group intends to open four hypermarkets in Riyadh in addition to one hypermarket and a supermarket in Jeddah.

Plans are in place for three hypermarkets and a department store in the Eastern Province in the next 18 months.

In the Eastern Province, LuLu's new stores will be located in Dammam, Jubail and Hofuf, joining the present hypermarket in Al Khobar.

"Our immediate plans include the upcoming Mushrif Mall or the Central Fish Market project in Abu Dhabi, besides a shopping mall in Al Ain and Ras Al Khaimah," Yousuf Ali added.

The opening in Saudi Arabia comes just days after a LuLu Hypermarket opened in Oman. The LuLu Khaboura cost 15 million Omani riyals to build, and additional outlets in a 70 million riyal programme are expected to be completed by 2011.

The 15,000 square metre outlet in Khaboura, the chain's eighth in Oman, is located 178 kilometres north of Muscat. "Our immediate plans include the upcoming hypermarkets in Khasab, Salalah, Nizwa and Buraimi in Oman," Yousuf Ali said.

"In Oman, LuLu intends to take the stores to different vilayats [provinces] to be as close to the shoppers as possible and provide a shopping experience that is second to none."

The expansion will double LuLu's local headcount from the present 1,800 workers.

The group operates more than 80 outlets in the region. Its aim is to hit the 100-outlet mark next year.