Expanded Net Profit of Lulu Retail in First Half of 2025 Reaches $127 Million, Indicating Successful Continuation of Its Growth Strategy in UAE
Lulu Retail Expands Its Footprint with 20 New Stores in 2025
Lulu Retail, a leading retail conglomerate, is set to continue its expansion strategy with the opening of 20 new stores in 2025. By the end of July, the company had already opened 11 stores, with 9 more targeted for the remainder of the year [1][2][3]. This move will bring the total store count to 259 by the end of the year.
The expansion plan primarily focuses on key markets such as the UAE, Saudi Arabia, and Kuwait. In the UAE, Lulu's largest market, the company reported a strong revenue growth of 9.4% year-on-year in Q2 2025, driven by demand for fresh food and supported by an omni-channel strategy [2][3]. Saudi Arabia and Kuwait also showed steady revenue growth, with increases of 3.8% and 4.9% respectively [2][3].
Lulu Retail's CEO, Saifee Rupawala, stated that the expansion is aligned with the company’s strategic pillars, including launching new outlets, operational efficiency, and growth in private labels and e-commerce offerings [2][3]. The company's loyalty program is also expanding rapidly, with over 7.3 million members as of Q2 2025 [1][5].
During Q2 2025, Lulu Retail opened one hypermarket and one express store, adding 9,245 square metres of retail space [3]. The total retail space of Lulu Retail is now 1.35 million square metres, comprising 120 hypermarkets, 112 express stores, and 24 mini-markets [3].
The company's e-commerce sales grew by 43% in the second quarter of 2025, accounting for 5.6% of its retail revenue [1]. In addition, Lulu Retail's EBITDA for H1 2025 was recorded at $418 million, up 7% year-on-year [1]. The company also announced an interim dividend of $98.4 million and reported a net profit of $127 million in the first half of 2025, up 9.1% year-on-year [1].
However, not all markets have seen growth. Qatar's revenue in Q2 2025 increased by a mere 0.1%, while Oman's revenue declined by 1% due to flat supermarket sales [1]. Despite this, Lulu Retail's CEO reported a positive increase in average basket value, customer count, and sales per square metre [3].
In summary, Lulu Retail's 2025 expansion plan involves opening 20 new stores, focusing primarily on the UAE, Saudi Arabia, and Kuwait markets, leveraging both physical retail and online growth channels [1][2][3]. The company's strong financial performance, coupled with its strategic expansion, positions it well for continued growth in the future.
[1] - Lulu Retail Press Release [2] - Arabian Business [3] - Gulf News [4] - Zawya [5] - Lulu Retail Loyalty Program Press Release
- With the expansion of 20 new stores in 2025, Lulu Retail aims to diversify its food offerings and possibly venture into entertainment, news, real estate, business, sports, and retail industries.
- The financial health of Lulu Retail, as shown by its EBITDA of $418 million and net profit of $127 million in H1 2025, suggests a strong foundation for future growth and potential investments in various sectors.
- As Lulu Retail strengthens its presence in the UAE, Saudi Arabia, and Kuwait, there's a possibility of collaboration with local businesses and industries, particularly within finance and finance-related services.
- The success of Lulu Retail's e-commerce platform, with sales growing by 43% in Q2 2025, opens doors for potential partnerships with technology and digital marketing companies.
- As Lulu Retail's retail space and customer base continue to grow, they might explore opportunities in the local entertainment and sports industries to attract more shoppers and create a more engaging experience.
