Marka, the Dubai-listed retail group, announced another quarter of losses yesterday, but remained confident about its plans to deliver profit in 2016.
The company reported a loss of Dh18.13 million for the first three months of the year. It did not provide a figure for the corresponding period a year earlier.
The retail sector has been hurt by the strong US dollar, to which the UAE dirham is pegged, making purchases more expensive for many visitors.
Still, Marka has aggressive expansion plans for 2016 both in the UAE and regionally and believes its portfolio of brands and franchising operations will drive profit.
“We plan to double the retail space we have now in the next 12 months,” said Nick Peel, the chief executive of Marka.
He said he was confident Marka’s scaleability and brand portfolio would bring profit this year.
“We currently have 50 outlets across our portfolio and Marka is planning to open four new Reem Al Bawadi restaurants, three new Cheeky Monkeys Playland & Sweet Surprises outlets, and a Modell’s outlet in Al Ain, along with our expansion in Qatar and franchising agreements in Saudi Arabia,” he said.
During the third quarter of 2015 Marka acquired the Middle East franchise rights for the ice-cream brand Morelli’s Gelato; dinh van, a French jewellery brand; Carven, a French fashion brand; and City Chic, a fashion brand for plus-size women.
So far this year dinh van, Carven and Essentiel have opened in Dubai’s City Walk Phase 2, City Chic stores opened in Ras Al Khaimah, Dubai and Sharjah and Icons first two store-in-store Dubai outlets opened in Modell’s Mall of the Emirates and City Center Mirdif.
“Despite the challenging economy as a backdrop to its operations, Marka continues to make progress on its business plan to build a portfolio of exciting and profitable hospitality and fashion/beauty brands,” said Khaled Almheiri, vice chairman and managing director of Marka.
ascott@thenational.ae
