Lulu Retail’s expansion strategy: GCC growth and new retail formats
Lulu Retail’s rollout will significantly increase its network footprint, building on a baseline of 267 outlets currently operating across the UAE, Saudi Arabia, Kuwait and Bahrain. According to the company’s plans:
- 50 additional stores including hypermarkets, express outlets and value-format shops, are slated to open by 2028, boosting accessibility to groceries and essentials across urban and suburban areas.
- The expansion complements Lulu’s recent openings, such as a new Lulu Xpress store in Ras Al Khaimah’s Ghalilah Mall, which provides grocery and daily needs in a convenient neighbourhood location.
This multi-year development mirrors Lulu’s broader strategy to not only maintain its leadership in traditional hypermarkets but also grow smaller-format stores that cater to modern shopping patterns and convenience-based buying.
Lulu Retail driving economic impact: Jobs and local development
One of the most direct benefits of Lulu’s expansion is job creation across GCC markets. The new stores are expected to bring hundreds of employment opportunities in retail operations, supply-chain logistics, customer service and store management, a welcome boost for labour markets in the UAE, Saudi Arabia and neighbouring countries.
Lulu has previously been linked to large hiring drives tied to its growth ambitions; in the past, the retailer’s expansion initiatives included plans to recruit workers for newly opened cinemas and retail facilities. In addition to direct jobs, the company’s footprint aids local economies by strengthening supply chains, supporting national agriculture and food suppliers, and contributing to broader economic diversification goals of GCC countries.
Lulu’s expansion reflects broader regional trends in Gulf consumer markets –
- Retail growth resilience: Consumer spending on essentials and digital grocery channels has strengthened, with Lulu’s e-commerce platform reporting rapid year-on-year online sales growth alongside physical store expansion.
- Convenience formats: Smaller formats like express stores and mini-markets are becoming integral to retail ecosystems, mimicking global trends in convenience-oriented shopping behaviour.
- Cross-border retailing: The group’s presence near strategic locations, such as the UAE–Oman border at Al Sila and busy commercial hubs, increases customer reach and reflects Lulu’s adaptive retail strategy.
The expansion also comes amid an evolving retail space in the Gulf, where regional chains are increasingly investing in technology, loyalty programmes and supply-chain integration to improve cost-competitiveness and customer satisfaction.
Lulu Retail’s e-commerce and loyalty as growth pillars
Lulu’s growth is not limited to physical stores. Its digital platform and loyalty ecosystem are central to its long-term strategy:
- In 2025, e-commerce surged with online penetration growing significantly, highlighting a successful omni-channel approach that complements brick-and-mortar retailing.
- The Happiness loyalty programme expanded its membership base, with millions of consumers contributing to sustained sales through repeat purchases and personalised promotions.
This blend of store expansion and digital innovation positions Lulu well to meet shifting consumer expectations in a post-pandemic retail landscape.
Strategic outlook: GCC retail dynamics in 2026–2028
The next three years will be pivotal for retail in the Gulf, and Lulu Retail’s expansion strategy underscores confidence in sustained consumer demand and economic growth across the region. Continued store openings are expected to:
- Enhance competition and choice for shoppers in suburban and rural markets, not just urban centres.
- Support job markets, particularly for young professionals and retail specialists.
- Integrate digital and in-store experiences that reflect global retail best practices.
As GCC economies continue opening up and diversifying, initiatives like Lulu’s expansion, blending physical presence with digital commerce, could shape the future of everyday retailing across the Middle East. Lulu Retail’s announcement of 50 new stores and hundreds of jobs across the GCC by 2028 marks a significant milestone for the region’s retail industry, reflecting an ongoing evolution that blends customer convenience, economic opportunity and digital resilience.
As the company enhances accessibility to essentials and supports local workforces, its strategy embodies the dynamism of Gulf consumer markets in 2026 and beyond.
