Choithrams, the popular UAE supermarket chain, will embark on a major expansion, which will see it opening a series of new stores in the UAE, Bahrain and Qatar, besides launching online shopping services in Bahrain and Qatar, its top executive told Arabian Business.
The supermarket chain also struck a partnership deal with Sainsbury’s to retail the UK major’s products in the UAE, Qatar and Bahrain as a preferred partner, as it marks the milestone of 50 years of operations in the UAE.
The company management, however, ruled out any plans to go for listing of the company on stock exchanges ‘anytime soon’, and said it would fund the proposed expansion plans from internal resources and bank finances.
“We will soon be kicking off a major expansion drive as part of our ambitious plans to expand our footprint far and wide in the GCC markets. This year alone, we have plans to open 4-5 stores in UAE, and three each in Bahrain and Qatar,” Rajiv Warrier, CEO of T Choithram & Sons, told Arabian Business.
“Apart from the new stores we will be also launching Megamart.bh and Megamart.qa, our online shopping websites for Bahrain and Qatar to cater to the growing demand of online shopping,” he said.
Warrier said the supermarket chain’s UAE website choithrams.com will also be relaunched with more features, loyalty benefits through its Bounz loyalty programme and exclusive promotions.
The UAE expansion plans come on top of the chain opening 10 new stores last year.
The chain operates its stores under the Choithrams banner in the UAE, while in Bahrain and Qatar it operates under the Megamart banner.
Choithrams focuses on e-commerce, warehouse expansion
Warrier also announced kicking off a year-long golden jubilee anniversary celebration by the supermarket chain, which will see a range of in-store activities, stakeholder and employee engagement programmes and new strategic partnerships.
“We will also explore investments in new forms of e-commerce based on consumer behaviour and market needs, in line with our growth plans in the next phase of the company,” he said, adding that e-commerce and online shopping via different channels will be a major focus area for it to continue to grow in the region in its next phase.
The Choithrams top executive said over the course of the next couple of years, the company will also explore strengthening its warehouse infrastructure in the markets it operates “based on current and future assessed needs”.
On whether the company has plans to get listed on either any of the UAE stock exchanges or anywhere else in near or mid-term, Warrier said: “We are not looking at listing our company’s stock in the near future.
“Expansion will be funded by internal accruals and banking facilities.”
Incidentally, Choithrams’ move to keep the company as a private entity comes even as another UAE-based hypermarket chain and mall operator Lulu Group International recently indicating its plans to get listed on a Gulf stock exchange through an initial public offering (IPO) in the first half of 2024.
50 years and still going strong
Choithrams, which opened its first outlet in the UAE 50 years ago, traces its origin story to West Africa, going back 80 years.
Over the years, the supermarket chain founded by Thakurdas Choithram Pagarani has become a household name in Dubai – as also across many parts of the UAE – and a go-to destination for everyday needs.
The supermarket chain is also known for bringing several global retail products to the UAE market through strategic partnerships.
Its latest tie-up with Sainsbury’s follows similar deals to bring Britain’s Tesco range of products, and Ireland’s SuperValu to the retail stores of UAE.
“Behind every moment of customer delight in the UAE and the region, there is an efficient system of trade support that Choithrams has grown over the past 50 years into a business advantage for partners,” Warrier said.
The Choithrams currently has a significant presence across trade channels, including modern trade, groceries, convenience stores, petrol pumps, cafeteria and tea shops and duty-free outlets.
“Seamless integration of retail, distribution and manufacturing capabilities give Choithrams a unique competitive advantage to participate in and benefit from UAE’s all-round growth,” the company’s top executive said.
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