Lulu Group’s Retail Empire Continues to Thrive with Strong 2025 Performance and Global Expansion
Strong Financial Performance and Market Leadership
Lulu Retail Holdings, the largest grocery retailer in the GCC, has demonstrated robust performance in the first half of 2025, with net earnings increasing by 9 percent year-on-year to $127 million.
The company currently maintains a substantial market presence with a market capitalization of $3.4 billion and trailing twelve-month revenue of $7.85 billion.
Expanding Retail Footprint
As a pan-GCC retailer, Lulu operates across multiple formats, including hypermarkets averaging 9,200 square meters, express stores of 2,400 square meters, and mini markets of 160 square meters. The company maintains a strong presence across the UAE, Saudi Arabia, Oman, Qatar, Kuwait, and Bahrain.
The group’s impressive portfolio includes 175 hypermarkets, express stores, and mini-markets in the UAE alone, with additional locations across Saudi Arabia, Oman, Qatar, India, Bahrain, Kuwait, Egypt, Yemen, Indonesia, Suriname, and Malaysia. The company also owns 13 shopping malls in the Gulf and commands approximately 13% of the GCC modern offline grocery market.
Digital Innovation and Future Growth
The supermarket chain has reported growth across multiple categories, with fresh foods showing a 10 percent increase compared to the previous year. The company has also seen strong performance in electrical goods, particularly in mobile phones, supported by promotional campaigns. Notably, their ecommerce sales have shown remarkable growth, increasing by 70 percent year-on-year to $326 million in 2024.
In a significant development, Lulu Retail Holdings has increased its initial public offering stake from 25 to 30 percent due to high demand on the Abu Dhabi Securities Exchange, aiming to raise up to AED6.32 billion. The company plans to offer over 2.5 billion shares to both retail and professional investors through a structured offering.
Market Outlook
The UAE’s retail sector shows promising growth potential, with retail sales projected to reach $70.5 billion by 2025, representing an annual growth of 6.6 percent. Despite global headwinds and rising inflation, the retail sector continues to expand, with global retail sales revenue expected to grow from US$26 trillion in 2021 to more than US$30 trillion in 2024.
