Landmark says on track for $5bn turnover goal

Gulf retail conglomerate behind Babyshop, New Look reports 28% rise in revenues
Landmark says on track for $5bn turnover goal
Landmark Group founder Micky Jagtiani
By Claire Ferris-Lay
Tue 01 Nov 2011 11:21 AM

Landmark Group, the retailer behind fashion chains New Look and Reiss, expects to see an annual turnover of $5bn by 2015, the CEO of the retail conglomerate has said. 

The brand operates more than 1,000 outlets across the Middle East and India and has seen a 28 percent rise in revenues in 2010-2011, the company said in an emailed statement Tuesday.

“We aim to grow our retail footprint, expand our reach to five new countries, and introduce new brands and achieve revenue of over $5bn by 2015,” said Vipen Sethi.

“From annual revenue of $1.1bn in 2006, we have garnered a consistent annual growth of 25 percent every year, in the last five years.”

Landmark, one of the largest retail conglomerates in the region, is ramping up its expansion through buying franchise rights of international firms and developing its own brands.

The firm said in September said it planned to open another 200 stores in the Middle East over the next twelve months and increase its retail space by approximately 15-20 percent.

“Expansion for all the brands is pretty much on the cards,” Sethi told Arabian Business. “We are opening new stores all the time.

“We have 1,000 stores today - that includes all the retail brands. This is likely to grow by about 20 percent. So [we will open] about 200 more stores.

In the year ending June 2011, the firm’s retail segment recorded top line growth of around 24 percent, Sethi said, followed by strong sales during the month of Ramadan.

Among the best performing brands are those selling necessities or value goods, including Maxx Fashion, Splash, the Babyshop and the Home Centre.

The group also plans to expand its Fitness First chain of gyms across the Middle East to 100 branches over the next five years, after buying the regional franchise to the brand in 2010/

“We’ve got 13 clubs in the UAE at the moment and we’ve got big plans for Abu Dhabi, Sharjah – we’re looking at all of the other emirate states to open clubs,” said George Flooks, COO of Fitness First Middle East.

“Over a five year period we will look to get ourselves to 35 clubs in the UAE. The broader strategy is 100 clubs in five years, that’s across the Middle East.”

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