Marka, the retailer that listed on the Dubai Financial Market last month, said it would open a further four fashion outlets in the emirate next year.
The company will open Sonia by Sonia Rykiel, Berenice, Essentiel Antwerp, as well as a fourth, affordable luxury brand, in the later part of next year at Dubai’s City Walk.
“Marka will open the four new concepts once Meraas Holding completes Phase II of its City Walk development,” said Nick Peel, the chief executive of Marka. “This is anticipated to be in September 2015.”
Before then, unnamed outlets are slated for early next year at The Beach in Dubai Marina, Galleria Mall on Al Wasl Road in Dubai and Yas Mall in Abu Dhabi.
Marka holds exclusive franchise rights for the UAE and other GCC countries – with some minor exceptions – for brands including Cristiano Ronaldo’s CR7 Footwear line and Laurel.
“The retail sector in the UAE was worth Dh374.7 billion in 2013, with apparel and footwear specialist stores worth Dh36.6bn, growing on average of 8 per cent in current value terms” said Fatemah Sherif, a senior analyst with Euromonitor International. “Fashion is an excellent sector that is growing alongside demand by the fashion-conscious as well as consumers seeking differentiation in their shopping experience.
“City Walk is also a prime location for dining currently and with its growing target audience, further fashion concepts are expected to drive more consumers to visit.”
Its shares commenced trading on the DFM on September 25. It was a “greenfield” IPO, meaning it has no trading track record or substantial assets. However, the company’s strategy is focused on the sports, hospitality and fashion segments of the retail business and high-quality casual dining outlets in retail centres.
The plan is to offer these high-value products through top-end malls in Dubai and Abu Dhabi, then expand in Saudi Arabia, Kuwait and Qatar, aiming to become the “leading retail operator in the GCC”, the company said last month.
“While premium retail space is expensive, we believe the increasing resident population, as well as tourists, will generate the necessary traffic to generate the volumes that will drive our revenue and profit expectations,” said Mr Peel.
“We are working on several initiatives in the fashion and sports retail segments, as well as in the hospitality sector. Some of these are unique and innovative concepts. We are in the process of signing up suitable locations for our upcoming stores and this would be a blend of super-regional malls and community malls to address the expectations of a wide range of customers.”
Marka stock closed at Dh1.26, down 4.55 per cent.
ascott@thenational.ae
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