Lulu Retail Holdings, the region’s largest pan-GCC full-line retailer, has announced an aggressive expansion plan to open 50 new outlets between 2026 and 2028. The announcement comes as the company reported record revenues of Dh29.1 billion for 2025, marking an increase of 4.1 per cent.
The retailer attributed the surge in profits to its disciplined store expansion and robust e-commerce growth across the GCC markets.
Expansion and Job Creation
Lulu successfully opened 20 new stores in 2025, effectively meeting its guidance and taking the total store count to 267 by year-end. The expansion included a mix of large-format hypermarkets, express stores, and mini markets across the UAE, Saudi Arabia, Kuwait, and Bahrain.
Looking ahead, the 50 new outlets planned by 2028 are expected to create hundreds of job opportunities across the GCC, reinforcing Lulu’s position as a major private-sector employer in the region.
Financial Highlights & Dividends
Net profit for the year reached Dh753 million, coming in slightly ahead of the guidance provided in the third quarter of 2025.
Reflecting its strong financial health, the company proposed a second-half dividend of 3.5 fils per share. This takes the total dividend for 2025 to 7 fils per share (approximately Dh724 million), offering a solid return to investors.
Saifee Rupawala, CEO of Lulu Retail, commented on the performance:
“The year concluded with 20 new store openings, taking our total to 267 stores and delivering record revenue of almost $8 billion. Our existing portfolio and growing e-commerce presence position us to continue our disciplined expansion strategy across the GCC. Our high cash generation and confidence in the outlook allow us to propose a total dividend of 7 fils per share for 2025.”
E-Commerce Boom
Lulu’s digital channels continued to be a key growth driver. E-commerce sales increased by 38.6 per cent year-on-year, accelerating to a massive 51.8 per cent growth in the fourth quarter alone. Online penetration reached 7.3 per cent of total retail sales in Q4, reflecting steady customer adoption.
The company noted that investments in its own digital platform are delivering strong returns, with sales through Lulu’s proprietary app and website growing at nearly double the rate of aggregator channels.
Private Labels & Debt Reduction
In addition to digital growth, Lulu’s focus on its own-brand products paid off. Private label products increased their share of total sales to 29.8 per cent, supporting both revenue growth and profit margins.
On the balance sheet side, the company’s net debt reduced slightly to Dh9.18 billion, with leverage improving on an IFRS 16 basis.
