GMG, a Dubai-based retail firm, announced that it had acquired aswaaq LLC from the Investment Corporation of Dubai (ICD).
ICD is the investment arm of the Dubai government, and the deal will see 11 community malls, 22 supermarkets and 800 employees moved to GMG.
Speaking on the deal, Mohammad A. Baker, Deputy Chairman and CEO of GMG, told Arabian Business that aswaaq possessed a “natural synergy” with GMG, and the move was part of his company’s plans to add further vertical integration.
“It is part of our Farm to Fork strategy. We have quite a lot of manufacturing capabilities that we will be announcing soon. We’ve already announced and we have a few more coming in the pipeline. We will go from manufacturing, distribution, retailing and building communities to be closer to our customers and serving their needs,” Baker said.
GMG already employees around 8,700 people across its verticals, with the aswaaq deal adding another 800 workers.
The aswaaq purchase represents a doubling down on GMG’s vision of the future of retail. While digitalisation and ecommerce have reshaped consumer purchasing in the future, Baker, who describes himself as a “hardcore retailer” shook off any suggestion that physical stores would be disappearing anytime soon.
“I’ve heard this question millions of times throughout the last 10 years. Everyone continues to say that brick and mortar will disappear. Actually, it will stick around, brick and mortar and retailing have been around for hundreds of years. It is not going anywhere,” he said.
However, this doesn’t mean that the company is immune to the march of digitalisation, with the company betting big on its “phygital” approach to the future of retail.
“With technology the consumer is expecting different kinds of service, and the consumer is king. If the consumer decides to buy in store, or buys from his house to get products delivered, it’s about an omni-channel technology approach, rather than just online or brick and mortar,” he said.
On the aswaaq purchase, Khalifa Al Daboos, Deputy CEO, Investment Corporation of Dubai, said in a statement: “We, at ICD, are very proud of all that has been achieved at aswaaq in the last 12 years. We believe that aswaaq and its employees will thrive and grow under the guidance of a diversified family-owned business with immense experience and a glowing track record in the retail sector, where aswaaq will play the leading role in GMG’s push to become the main player in UAE food retail.”
GMG’s portfolio includes a wide range of difference segments, such as consumer goods with brands like Géant, Franprix, Monoprix, and Monop, food, with dividsions including Farm Fresh, Klassic, Sapora, Noor Al Islami, RUH, and Quality, and sports with home-grown brands such as Sun & Sand Sports, along with international brands like Nike, Columbia, Jordan, and The North Face.
Last month, GMG also unveiled new plans to expand in Southeast Asia, with plans to open 100 new stores by 2025. In addition, the company opened its Asian HQ in Malaysia.
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