By Shane McGinley
Retail giant looking at developing 30 malls across kingdom with four to open within a year
Landmark Group, the UAE-based retail conglomerate, is planning to invest nearly US$250m in opening around 30 Oasis Centres in Saudi Arabia, a senior executive confirmed to Arabian Business.
“Since Saudi Arabia, which contributes over 45 percent of the group’s turnover, is a key market for Landmark Group concepts, we are working towards setting up more Oasis Centre malls in the kingdom,” said Neelesh Bhatnagar, director of the Oasis Centre in Dubai.
Landmark plans to open Oasis Centres in 30 Saudi cities. “Most of the major malls are at locations like Riyadh, Jeddah and Al Khobar, but we see a lot of potential in the retail markets at secondary locations of Saudi Arabia, which are virtually untapped. These will also be cities that truly appreciate quality shopping experience combined with true value for money,” he said.
Four centres will be opened within the next 12 months and the group plans to invest AED30m in each mall, bringing the total investment to around AED900m (US$245m).
“The Oasis Centre properties will be owned and developed by our Saudi partners. We intend to seek ten-year leases plus option on another ten. Such an expansion approach will result in bringing down our initial costs, as compared to developing the property from scratch,” Bhatnagar added.
The latest venture is part of Landmark’s expansion overseas. Earlier this summer it was reported the group is eying sales of US$1bn in India over the next two years, while Splash, Landmark’s mid-market fashion retailer is planning to enter a number of African markets via franchise agreements.
The business, which sells a mixture of Western and its own fashion brands, has signed deals to open outlets in Libya and Kenya, as well as Sri Lanka, Splash’s CEO Raza Beig told Arabian Business earlier this year.
“In the next 18 months we'll be in about in another 15 or 16 cities,” he said, adding that the African continent will be the “first concentration”. The retailer’s only presence in Africa at the moment is in Egypt, where it has two outlets.
Beig added that Splash was also eyeing Far Eastern markets. “There's also a lot of dialogue from the East, but we've not yet finalised it,” he said.
Landmark Group operates 900 stores across the Middle East, India, Turkey and Pakistan and employs more than 31,000 staff.For all the latest retail news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Do not know million of Indians like Micky & others make their fortune in this part of the world - KSA, UAE, BAH etc but still complain about the culture, citizens, society at large. Please be respectful to these countries which have provided you the opportunity to rise from virtually nothing.
Mudhaiheem, can you please provide evidence of Micky Jagtiani talking negatively about this region. Thanks.
In return, these are the people which have change & brought fortunes to these places... do you seriously think local population could /would have contributed somuch to the development of these countries?
That is the reason why the Governments of these countries are not solely dependant of locals, they invite and encourage expats to come here and do the development.