Around the world, there are 250 top retailers that generate $4.4 trillion in revenue with a net profit of 3.2 percent. Two of these firms are in the retail market in the UAE, including Lulu Group with a 32 percent share of the market and 131 stores in GCC, Egypt, India, Indonesia, and Malaysia. Also in the retail market in the UAE is Majid Al Futtaim Holding. Both retailers are listed at number 141 and 151 respectively.
Lulu Group, a chain of hypermarkets and superstores in 10 countries raked in $6.9 billion (Dh47.34 billion) in 2016, with a compound annual growth rate of 10.2 percent. While Majid Al Futtaim Holding generated revenues of $6.5 billion with group revenues reaching $8.14 billion. Lulu Group operates 120 supermarkets and 90 hypermarkets in 15 regions, posting group net income of $758 million with CAGR retail revenue of eight percent, according to a Deloitte report.
Meanwhile, Saudi Arabia’s Savola Group, which manages the Panda brand, ranked 244 with $3.67 billion revenues. The company is present in three countries and generated 6.7 percent CAGR in 2016.
In the Middle East and Africa, the top 250 global retailers have expanded their market share from 0.6 percent in 2006 to 1.6 percent.
“Retailers from China, Japan and the rest of Asia-Pacific are gaining ground, along with some players from emerging markets in Africa and the Middle East,” the report said.
According to Deloitte, the retail market in the UAE is increasingly popular with retailers.
“Together, the Africa/Middle East region’s 10.9 percent growth rate and 4.8 percent net profit margin composite in 2016 were among the highest of the five geographic regions. Top 250 retailers based in the region have a large geographic footprint. All 10 companies operated internationally in 2016 in an average of 11.2 countries. Nearly 35 percent of their combined retail revenue was generated outside their home countries,” the report said.
Carrefour, the French giant operated by Majid Al Futtaim in the Middle East is the 9th most influential retailer in the world, generating $84.13 billion in revenues.
The top 10 includes US companies such as Wal-Mart, Costco, Kroger Co., Schwarz Group, Walgreens Boots Alliance, Amazon.com, The Home Depot, Aldi Group, Carrefour and CVS Health Corp.
Aside from Lulu Group and Majid Al Futtaim Holding, other significant brands in the retail market in the UAE include Ikea, Apple, H&M, LVMH, Macy’s, The Gap, Nordstrom, M&S, Toys ‘R’ Us, Nike and Woolworths.