The move into malls

The Middle East's biggest supermarket chains are eager to tap the wealth of opportunities within the wider retail industry.

Aadham Junaidallah, executive vice president of support and CIO of Saudi Arabia's Othaim Markets told Retail News the Holy City of Medina holds considerable potential for retail players. The retailer will open its own mall in 2010 targeting local families and Muslim expatriates.

The company's convenience concept Othaim Corners could now be adapted and transformed into a franchise operation, Junaidallah revealed. "We will be providing them with the operations and management know-how, and this will be a scheme whereby the two partners benefit from the revenue generated."

There are currently 20 Othaim Corners stores in the Kingdom, and "they have proved there is big demand for the concept."

Dubai-based chain Union Coop will roll out Neighbourhood Malls as part of the upcoming extension to its portfolio. Owned by the company, these "smaller malls" will have up to 120 stores.

The UAE's Emke Group also plans to boost its Lulu hypermarket business by opening five shopping malls in Oman, and will invest RO 70 million in its expansion drive, which will raise the number of Omani employees from 1340 to 2200 by 2010.

The projects will feature more than 150 international brands, a food court with 30 outlets and an amusement centre.

The company has already invested RO 90 million on its existing outlets in Oman, according to Ashraf Ali M.A, executive director, and he described the country as "one of our key focus markets in the region.

The "multi-level retailer" is "constantly looking at offering new shopping and leisure experiences to both residents and tourists," he added. And it would seem - judging by all of these revelations to be featured in full in Retail News' April issue - it is not alone, as the industry excitingly chases growth beyond groceries.

As FMCG players pump more investment into non-food sections at hypermarkets and mini malls to feature their stores and a varied tenant mix often led by entertainment, a pattern is most certainly emerging.

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