LuLu Group has made a huge leap in the latest list of global retailer rankings published by Deloitte. The Group which was ranked at 183rd in the 2013 list of the top 250 global retailers, has risen 14 places in the 2014 latest rankings.
Deloitte, a professional services firm that has published these rankings, has said that LuLu Group averaged a compound annual growth rate of more than 18 % between 2008 and 2013. They also added that the group's revenues in 2013 was estimated at $5 billion, up from $4.5 billion in the previous year.
LuLu Group is the only entry from the Middle East in the global 250 list, which has put US giant Wal-Mart whose revenues in 2013 was at more than $ 476 billion, on top. LuLu group is set to open 15 new hypermarkets in UAE, Oman, Bahrain, Kuwait, KSA and Egypt in the next few months. LuLu Group had earlier announced its plan to open hypermarkets in Malaysia and Indonesia, thus setting its foothold in Far-East Asia.
Deloitte added that the top 250 global retailers generated a revenue of $4.4 trillion in 2013, each with an average size of more than $17.4 billion. Its 2015 ‘Global Powers of Retailing, Embracing Innovation’ report added that revenue growth for the top 250 retailers, which began declining in 2011, continued to slow in fiscal year 2013. According to the report, sales-weighted, currency-adjusted retail revenue growth was 4.1 % for the top 250, following a 4.9 % gain in the year 2012.
Says Herve Ballantyne, partner and consumer business leader at Deloitte Middle East, “The sluggish global economy in 2014 left many consumers financially constrained and retail sales under pressure. Thus, the prosperity of the global retail sector in 2015 will very much depend on the economic stability of several of the largest economies. Despite the recent fall in oil prices, there is little evidence at this stage that it will negatively impact consumer spending in the Middle East. Although European grocers might be slowing expansion, no such problems are affecting those in the Middle East.”
The LuLu Group has signed an MOU with Malaysia’s Federal Land Development Authority (FELDA), the world’s most successful land development and resettlement agency, for the establishment of LuLu Hypermarkets in Malaysia. The memorandum was signed by the Director General of FELDA, Y. Bhg. Datuk Faizoull Ahmad and Mr. Yusuff Ali M.A., Managing Director, LuLu Group International.
It was signed at LuLu Hypermarket, Mushriff Mall, Abu Dhabi, where the Malaysian Prime Minister Y.A.B. Dato’ Sri Mohd Najib Tun Abdul Razak, Tan Sri Hj. Mohd Isa Abdul Samad - Chairman of FELDA, and other delegates from FELDA had come for a visit. The Prime Minister was briefed by Yusuff Ali about various sections of the Hypermarket including products from Malaysia. The Malaysian PM was highly impressed with the variety of products available at the hypermarket.
The proposed locations for the establishment of LuLu Hypermarket in Malaysia are Kota Bharu Kelantan, Bukit Katil Malacca, Ipoh Perak, Nilai Icon City Negeri Sembilan, and Shah Alam Selangor. Other locations are also being surveyed. FELDA is also interested in developing other potentially strategic areas such as the Klang Valley, Johor Bharu and Penang.
LuLu Hypermarket hopes to begin operations in Malaysia by early 2016 and this will add value to the Malaysian market by introducing the unique concept of Halal Hypermarkets. New halal products as well as FELDA SME products will be promoted in the LuLu Hypermarket chains in Malaysia and the Middle East.
LuLu Hypermarket was on a winning spree at the coveted Middle East Retail Academy (MERA) awards at the ‘MERA: 2014 Awards’ Gala Dinner held in Abu Dhabi in conjunction with DISTREE Middle East Events on 21st May 2014.
LuLu Hypermarket bagged two Retailer Awards namely, the Retailer of the Year Bahrain and Retailer of the Year Oman, and also three Individual Awards - Retail Executive of the Year Qatar (Mr. Satheesan), Retail Executive of the Year Oman (Mr. Zohair Jamali), and Retail Executive of the Year KSA (Mr. Rimeesh).
LuLu Hypermarket was also given a special commendation and inducted into the ‘Hall of Fame’ for their overall contribution to the retail sector across the Middle East.
'Middle East Retail Academy: 2014 Awards' were decided during a live voting session by an audience of pre-qualified ICT and CE retail executives from across the Middle East market attending DISTREE Middle East. Prior to the live voting session, five nominated brands for each award were selected based on continuous channel feedback received during the last 12 months through the MERA Monthly Monitor Report (MMR).
Other than the awards it won, LuLu Hypermarket made it to the top 5 nominees in the Overall UAE Retailer of the Year, Saudi Arabia Retailer of the Year, Kuwait Retailer of the Year, and Qatar Retailer of the Year categories.