UAE's Landmark Group to invest $1bn to open 400 shops as it bets on retail growth

Three-year investment plan will result in retail footprint growth of 20 per cent by 2028

The Landmark Group offices in Dubai Marina. Photo: Landmark Group

The UAE’s Landmark Group plans to invest $1 billion over the next three years to open 400 new shops in the Gulf, India and South-east Asia as it bets on continued strong demand for bricks-and-mortar retail.

The planned three-year investment in shops will expand the company's retail footprint by 20 per cent by 2028, Landmark Group said in a statement on Tuesday. The retailer will also invest in e-commerce, supply chain and technology as it seeks to boost revenue across all markets.

"Physical stores remain a vital part of the retail experience and we continue to upgrade store design while we invest in e-commerce and in the latest technology and innovation," said Renuka Jagtiani, chairwoman of Landmark Group. "We believe that this is key to staying relevant to ensure a seamless customer experience, both on and offline."

The retailer's online business is growing by more than 20 per cent per year and the company is recording "great momentum" with its shops, said Kabir Lumba, chief executive of Landmark Retail.

The expansion comes as the Gulf retail industry has been projected to expand at a compounded annual rate of 4.6 per cent between 2023 to 2028, with the UAE and Saudi Arabia leading the region’s growth, a report by advisory Alpen Capital found in September.

Retail sales in Saudi Arabia and the UAE are projected to grow at an annual rate of 5.1 per cent and 5.4 per cent to reach $161.4 billion and $139.1 billion, respectively, during the period, the report found. Growth drivers include an expanding population base and strong infrastructure that makes each country a top international shopping destination. The Arab world's two biggest economies are expected to cumulatively account for 77.7 per cent of the total Gulf's retail sales by 2028, Alpen Capital said.

Landmark Group was founded in 1973 with a shop in Bahrain by businessman Micky Jagtiani – who died in May 2023 – and has since expanded into one of the largest retail and hospitality conglomerates in the Middle East and India. The group owns and runs 22 home-grown brands across a network of more than 2,200 outlets, spanning a gross leasable area of 33 million square feet in 17 countries.

It has more than 53,000 employees across brands including Centrepoint, Babyshop, Splash, Lifestyle, Max, Home Centre, Shoemart and Emax. Landmark Group has also diversified into the leisure, fitness and hospitality sectors, with brands including Fitness First, Citymax, Zafran and Carluccio’s.

As part of its latest expansion plans, the group will introduce its grocery brand Viva in Saudi Arabia in 2025, and launch Babyshop in four cities in India over the next six months, Landmark Group said.

The group, which runs 12 independent e-commerce shops that account for 20 per cent of total sales, currently has 12 million square feet of warehousing and distribution capacity, with high automation capabilities. This includes its $350 million flagship depot in Jebel Ali.

Landmark also established Logistiq in 2022, a third-party logistics company, that caters to clients outside the group. “In just 18 months, we have rapidly scaled our last-mile delivery services to handle over 20,000 daily shipments across [Saudi Arabia] and UAE for more than 50 clients, with a fleet of over 800 vehicles,” Mr Lumba said.

“Looking ahead, our vision is to build a leading logistics business by developing our end-to-end supply-chain offering, including freight, warehousing and cross-border delivery solutions; while expanding our coverage across the GCC.”