Lulu set to open 100th outlet in Ras Al Khaimah

Dubai: Emke Group, operator of Lulu supermarkets and hypermarkets, said it will open its 100th supermarket in Ras Al Khaimah this week.

The 100th outlet will be located in the RAK Mall, developed by the group as the region's largest retailer strengthens its shopping mall portfolio.

Last year, the group earned revenues of $4.5 billion (Dh16.5 billion) and forecasts 20 per cent growth this year.

The company is also set to launch an online store in July. The ‘Lulu Webstore' will initially be available to shoppers in the UAE and then expanded to other Gulf markets early next year. It represents the first major web-based venture by a regional retailer in consumer durables.

Shoppers will have to place online orders of at least Dh500 and deliveries will be made within 24 hours on average (fresh produce will not be available online).

Logistics provider

A third-party logistics service provider will be confirmed next month from a shortlist of four. This company will handle all door-to-door deliveries.

"Any sales that come in through the online format represent a bonus for the group since our upfront investments in technology and the back-end operations weren't that high in the first place," Yousuf Ali M.A., managing director, said.

"That gives a huge competitive advantage from day one.

"It's also an opportunity to tap into a high-income shopper base that's adept at technology. It would also help if it manages to get us new shoppers."

The online store will operate on an existing SAP platform deployed across the group's operations five years ago.

For a market such as Saudi Arabia, the intention is to deploy the Webstore in key cities first and then scale up.

According to retail industry sources, the Emke Group will likely try to pull in traffic to the portal through daily deals and other marketing tie-ins.

It already has a sizeable base of users for its co-branded credit cards with Abu Dhabi Commercial Bank. While online will provide a new buzz, the group continues with the opening of new physical locations.

Emke officials said more outlets are on the way in the UAE, principally in under-tapped locations such as Abu Dhabi's Western Region. Between now and 2014, the retailer is assigning top priority to the Saudi Arabian market, launching multiple locations there.

"Currently, the UAE accounts for 50 per cent of sales, followed by Oman; but with all the new possibilities that Saudi Arabia offers, it will soon become number two," Saifee Rupawala, CEO of Lulu Hypermarkets, said.

"We have five locations now and that will be strengthened by another 12 in the coming months."

While its neighbourhood stores under the Lulu Express branding continue to serve their purpose, senior officials said that the emphasis will still be on the hypermarket format.

"First off, it gives the scale, and consumers in the UAE still prefer if they have access to the full merchandising options," Rupawala said.

"The Express outlets will only work in select locations."