Majid Al Futtaim Retail, the supermarkets unit of the Dubai conglomerate, is aiming for 10 per cent year-on-year revenue growth in 2018, as it expands its Carrefour regional franchise and weighs acquisition opportunities in Saudi Arabia, its chief executive said.
The company plans to invest between Dh1.5 billion and Dh2bn in expanding Carrefour's store portfolio by 2021, with Saudi Arabia, Egypt, Pakistan and East Africa the key growth markets outside the UAE, Hani Weiss told The National.
“We continued to see a very robust performance in 2017 and are forecasting even higher, growth this year – far above 10 per cent.”
MAF Retail has around 250 Carrefour stores – in either supermarket or hypermarket format – across 14 markets in the Middle East and Africa and plans to double that figure within the next five years. It has the rights to operate in 38 markets.
It is a private company and does not disclose detailed financials.
MAF Retail has operated the Middle East Carrefour franchise since 1995 and Mr Weiss does not oversee its other segments, which include fashion and specialist retail (merchandise).
The supermarkets business – of which 70 per cent is food and 30 per cent is non-food – witnessed 8 per cent revenue growth for the full-year 2017, driven largely by MAF Retail’s acquisition of another supermarket franchise holder Retail Arabia last year. Under the deal, it acquired 26 Geant hypermarkets in the UAE, Bahrain and Kuwait and four GulfMart stores in Bahrain, and rebranded them to Carrefour.
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The company is scouting for a potential acquisition of a supermarket operator in Saudi Arabia, the Arabian Gulf’s largest market. No talks are ongoing yet but Mr Weiss hopes to sign a deal in 2019 or 2020.
It was reported last year that MAF Retail was eyeing a stake in the Lebanon operations of another UAE supermarket chain, Spinneys. Mr Weiss said no discussions are taking place at the moment and, “Spinneys is not for sale”. Spinneys’ products retail at a higher price point than Carrefour and MAF Retail does not wish to start tapping a broader demographic than it already does, he said.
Growth in 2018 and beyond will be driven by both digital and bricks-and-mortar expansions, Mr Weiss said. The UAE will have around 95 stores by the end of 2018, while Saudi Arabia will have around 70 stores by 2021 from 17 at present, and Kenya, with six stores at present, has another four in the pipeline. MAF Retail announced plans in February to open 100 stores in Egypt, and it plans to enter Uganda in 2019.
At the same time, MAF Retail has invested "hundreds of millions of dirhams" this year in improving Carrefour's digital operations. Investments include the establishment of a team of up to 150 data scientists to analyse customer data, a "Scan and Go" payment system using a mobile app, and the Carrefour UAE online delivery system, which promises one-hour delivery across the UAE by the end of 2018.
MAF Retail is also in talks with a “large European logistics provider” to develop a point-to-point distribution network for Carrefour in the Middle East, with a deal expected in the coming months, Mr Weiss said.
The company opened a 1.5 million square feet storage warehouse in Dubai’s Jebel Ali in June, and wants to open at least two more, in Saudi Arabia and Egypt. It wants to become a regional e-commerce giant for the hypermarket sector and reduce dependence on importing products to each of its markets directly from France. “We are actively seeking to automate the sourcing and delivery process for Carrefour in the next 2-3 years,” the chief executive said.
The introduction of VAT has had no impact on MAF Retail’s Carrefour business because it decided to offset the tax on around 400 of its items – amounting to 40 per cent of total stock. The company was able to do this by negotiating with its suppliers on increased bulk buying in line with store openings.
It would consider increasing the subsidy if there was a need in future, Mr Weiss added. This year, Carrefour launched a policy to refund customers the equivalent of 20 times a product’s cost in loyalty points if they found it cheaper somewhere else.
MAF Retail’s parent, Majid Al Futtaim Holding this week reported a 13 per cent year-on-year increase in revenues to Dh17.8bn in the first half of 2018.
All you need to know about Formula E in Saudi Arabia
What The Saudia Ad Diriyah E-Prix
When Saturday
Where Diriyah in Saudi Arabia
What time Qualifying takes place from 11.50am UAE time through until the Super Pole session, which is due to end at 12.55pm. The race, which will last for 45 minutes, starts at 4.05pm.
Who is competing There are 22 drivers, from 11 teams, on the grid, with each vehicle run solely on electronic power.
It Was Just an Accident
Director: Jafar Panahi
Stars: Vahid Mobasseri, Mariam Afshari, Ebrahim Azizi, Hadis Pakbaten, Majid Panahi, Mohamad Ali Elyasmehr
Rating: 4/5
The National Archives, Abu Dhabi
Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.
Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en
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Tips for taking the metro
- set out well ahead of time
- make sure you have at least Dh15 on you Nol card, as there could be big queues for top-up machines
- enter the right cabin. The train may be too busy to move between carriages once you're on
- don't carry too much luggage and tuck it under a seat to make room for fellow passengers
BMW M5 specs
Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
Power: 727hp
Torque: 1,000Nm
Transmission: 8-speed auto
Fuel consumption: 10.6L/100km
On sale: Now
Price: From Dh650,000
The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
On sale: Now
Abu Dhabi GP schedule
Friday: First practice - 1pm; Second practice - 5pm
Saturday: Final practice - 2pm; Qualifying - 5pm
Sunday: Etihad Airways Abu Dhabi Grand Prix (55 laps) - 5.10pm
Barbie
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The biog
Hometown: Cairo
Age: 37
Favourite TV series: The Handmaid’s Tale, Black Mirror
Favourite anime series: Death Note, One Piece and Hellsing
Favourite book: Designing Brand Identity, Fifth Edition
if you go
The flights
Etihad and Emirates fly direct from the UAE to Seoul from Dh3,775 return, including taxes
The package
Ski Safari offers a seven-night ski package to Korea, including five nights at the Dragon Valley Hotel in Yongpyong and two nights at Seoul CenterMark hotel, from £720 (Dh3,488) per person, including transfers, based on two travelling in January
The info
Visit www.gokorea.co.uk
UAE currency: the story behind the money in your pockets
Tonight's Chat on The National
Tonight's Chat is a series of online conversations on The National. The series features a diverse range of celebrities, politicians and business leaders from around the Arab world.
Tonight’s Chat host Ricardo Karam is a renowned author and broadcaster who has previously interviewed Bill Gates, Carlos Ghosn, Andre Agassi and the late Zaha Hadid, among others.
Intellectually curious and thought-provoking, Tonight’s Chat moves the conversation forward.
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Fixtures
Sunday, December 8, Sharjah Cricket Stadium – UAE v USA
Monday, December 9, Sharjah Cricket Stadium – USA v Scotland
Wednesday, December 11, Sharjah Cricket Stadium – UAE v Scotland
Thursday, December 12, ICC Academy, Dubai – UAE v USA
Saturday, December 14, ICC Academy, Dubai – USA v Scotland
Sunday, December 15, ICC Academy, Dubai – UAE v Scotland
Note: All matches start at 10am, admission is free
UAE currency: the story behind the money in your pockets
England's all-time record goalscorers:
Wayne Rooney 53
Bobby Charlton 49
Gary Lineker 48
Jimmy Greaves 44
Michael Owen 40
Tom Finney 30
Nat Lofthouse 30
Alan Shearer 30
Viv Woodward 29
Frank Lampard 29
The five pillars of Islam
The Sand Castle
Director: Matty Brown
Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea
Rating: 2.5/5
57%20Seconds
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How to donate
Send “thenational” to the following numbers or call the hotline on: 0502955999
2289 – Dh10
2252 – Dh 50
6025 – Dh20
6027 – Dh 100
6026 – Dh 200
WOMAN AND CHILD
Director: Saeed Roustaee
Starring: Parinaz Izadyar, Payman Maadi
Rating: 4/5
HAJJAN
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SPECS
Engine: Two-litre four-cylinder turbo
Power: 235hp
Torque: 350Nm
Transmission: Nine-speed automatic
Price: From Dh167,500 ($45,000)
On sale: Now
Name: Brendalle Belaza
From: Crossing Rubber, Philippines
Arrived in the UAE: 2007
Favourite place in Abu Dhabi: NYUAD campus
Favourite photography style: Street photography
Favourite book: Harry Potter
THE SPECS
Engine: 1.5-litre
Transmission: 6-speed automatic
Power: 110 horsepower
Torque: 147Nm
Price: From Dh59,700
On sale: now
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
Sarfira
Director: Sudha Kongara Prasad
Starring: Akshay Kumar, Radhika Madan, Paresh Rawal
Rating: 2/5
The years Ramadan fell in May
Sole survivors
- Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
- George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
- Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
- Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
How to vote in the UAE
1) Download your ballot https://www.fvap.gov/
2) Take it to the US Embassy
3) Deadline is October 15
4) The embassy will ensure all ballots reach the US in time for the November 3 poll