Lulu to open 50 stores in GCC between 2026 and 2028, a move expected to generate hundreds of new jobs as Lulu Retail Holdings reported record financial results and strong e-commerce growth across the region. The expansion follows 20 new store openings in 2025, taking Lulu’s total network to 267 outlets across the United Arab Emirates, Saudi Arabia, Kuwait and Bahrain.
New locations included hypermarkets, express stores and mini-market formats designed to capture neighbourhood demand and convenience retail growth.
Lulu to open 50 stores in GCC as revenue hits record high
Lulu reported Dh29.1 billion in 2025 revenue, marking a 4.1% year-on-year increase driven by store expansion and rapid digital adoption. Net profit reached Dh753 million, slightly ahead of earlier guidance, highlighting steady operational performance despite regional cost pressures. The retailer also announced a second-half dividend of 3.5 fils per share, bringing the total 2025 dividend to 7 fils, equivalent to about Dh724 million in shareholder returns.
Chief executive Saifee Rupawala said the company’s growing store base and digital ecosystem position it for disciplined long-term expansion across the GCC, supported by strong cash generation and customer demand.
E-commerce surge and private labels boost margins
Online sales rose 38.6% year-on-year and accelerated to 51.8% growth in the fourth quarter, with digital penetration reaching 7.3% of total retail sales. Lulu said investment in its proprietary e-commerce platform delivered faster growth than third-party aggregator channels, strengthening profitability and customer retention.
At the same time, private-label products increased to 29.8% of total sales, supporting both revenue expansion and margin improvement across categories.
Expansion supports jobs and regional retail growth
The plan to open 50 additional stores by 2028 is expected to create hundreds of employment opportunities while deepening Lulu’s footprint across the GCC.
Despite continued investment, the company reported net debt of Dh9.18 billion, reflecting a slight decline and improved leverage under IFRS 16, signalling balance-sheet discipline as growth accelerates.
