Saudi Arabia- Lulu hopes to shake up competition with SR140m hypermarket 

(MENAFN - Arab News) Lulu Hypermarket, part of the UAE-based EMKE Group, entered Saudi Arabia's retail sector Wednesday with the opening of its SR140 million mega-store on King Fahd Street in Alkhobar.

This is the 76th branch of the group in the region; it accounts for nearly a third of the Gulf's retail market share with a customer flow of 350,000 shoppers daily chainwide. The mega-store's slogan is "Where the world comes to shop," and that was the case on the opening day when people packed the hypermarket. There was no traditional ribbon cutting. Instead an Islamic scholar from the south Indian state of Kerala read verses from the Holy Qur'an, and thus was Alkhobar's newest landmark opened.

"This is our first store in the Kingdom and 76th hypermarket," Managing Director M.A. Yusuffali told Arab News. "We see tremendous market potential in this part of the region and have done extensive research before finalizing this exact location. Each of our mega-stores has a well-defined target shopper base, which ensures that we are easily accessible to the bulk of residents."

The hypermarket covers an area of 250,000 sq. ft. and offers a whole world of shopping with a good selection of brands and product lines under one roof. The main focus of Lulu is the large supermarket section. However, it also carries a wide range of electronics and communications products, linens, household items, garments, sports equipment and more. The hypermarket features a number of other outlets including Giordano, Joy Alukkas, Malabar Gold and Dar Optics. The hypermarket also has parking for more than 1,000 vehicles.

The chain is undertaking a massive Saudization effort and plans further expansion in the Kingdom. "We have employed about 200 local Saudi youth and plan to increase this by another 1,250 by the end of 2010," said Yusuffali.

"The total investment in this project is SR140 million, and we plan to invest another SR600 million by opening two hypermarkets and two department stores in Riyadh next year. We are also finalizing new projects for Jeddah and other parts of the Kingdom."

He thanked Custodian of the Two Holy Mosques King Abdullah and the efforts of the Saudi Arabian General Investment Authority (SAGIA) for the support and cooperation extended to foreign investors in the Kingdom.

In response to a question from Arab News on Wednesday about the secret behind his phenomenal success, Yusuffali just looked up and exclaimed: "It is all thanks to Allah."

By Siraj Wahab