Latest news with #HappinessLoyaltyProgram
Trade Arabia
14-05-2025
- Business
- Trade Arabia
Lulu reports 7.3% increase in Q1 revenue to $2.1bn
Lulu Retail Holdings, the largest and fastest growing pan GCC full line retailer, has reported a revenue of $2.1 billion for the first quarter of 2025, up 7.3% YoY, with like-for-like sales up 3.6% YoY driven by strong sales during Ramadan period and volume growth in certain product categories. EBITDA of $214.1 million was up 6.4% YoY, with EBITDA margin of 10.3%, which remained stable vs Q1 2024. Net profit was $69.7 million, up 15.8% YoY, with a net profit margin of 3.4%, up 25bps vs Q1 2024. Other highlights of the result: • Good strategic progress with five new stores opened in Q1 2025 including in Makkah and Madinah with the target for 20 new stores in 2025 unchanged • E-commerce sales grew strongly, up 25.3% YoY to $93.4 million - now 4.7% of retail revenue • Strong growth in revenue from Private Label products, up 9.5% YoY - 29.3% of retail revenue • Happiness loyalty program members reached around 6.3 million in Q1 vs 5.5 million in FY24 - linked to 65% of sales. Saifee Rupawala, Chief Executive Officer of Lulu, commented: 'We are pleased to have demonstrated good growth in the first quarter of this year, with revenue up 7.3% YoY. This was underpinned by a combination of like-for-like sales growth, supported by strong trading during the Ramadan period, and our store rollout programme, which remains well on track with five stores opened in the quarter, in line with our plan to rollout a total of 20 stores in 2025. The first quarter also saw Lulu make good progress on delivering on our overall growth strategy, supported by robust sales in Private Label and e-commerce, which remain key components of our strategy. 'Looking ahead, we expect our growth momentum to continue as we remain focused on several initiatives under each of our four key pillars, including driving growth in existing store network, opening new stores, driving operational efficiencies and delivering further upside through our private label and e-commerce offerings. Overall, we are pleased with the performance in the first quarter, marking a good start to 2025, and we look forward to continuing to deliver on our strategy throughout the rest of the year,' he said. -
Zawya
14-05-2025
- Business
- Zawya
Lulu Retail reports Q1 2025 revenue of $2.1bln
Abu Dhabi, UAE: Lulu Retail Holdings PLC ('Lulu' or the 'Company'), the largest and fastest growing pan GCC full line retailer, today announced its financial results for the three-month period ended 31 March 2025 ('Q1 2025'). Key highlights Q1 2025 revenue of $2.1 billion, up 7.3% YoY, with like-for-like sales up 3.6% YoY driven by strong sales during Ramadan period and volume growth in certain product categories EBITDA of $214.1 million, up 6.4% YoY, with EBITDA margin of 10.3%, stable vs. Q1 2024 Net profit of $69.7m, up 15.8% YoY, with net profit margin of 3.4%, up 25bps vs. Q1 2024 Good strategic progress with five new stores opened in Q1 2025 including in Makkah and Madinah with the target for 20 new stores in 2025 unchanged E-commerce sales grew strongly, up 25.3% YoY to $93.4 million; now 4.7% of retail revenue Strong growth in revenue from Private Label products, up 9.5% YoY; 29.3% of retail revenue Happiness loyalty program members reached c.6.3 million in Q1 vs. c.5.5 million in FY24; linked to 65% of sales Saifee Rupawala, Chief Executive Officer of Lulu, commented: 'We are pleased to have demonstrated good growth in the first quarter of this year, with revenue up 7.3% YoY. This was underpinned by a combination of like-for-like sales growth, supported by strong trading during the Ramadan period, and our store rollout programme, which remains well on track with five stores opened in the quarter, in line with our plan to rollout a total of 20 stores in 2025. The first quarter also saw Lulu make good progress on delivering on our overall growth strategy, supported by robust sales in Private Label and e-commerce, which remain key components of our strategy.' 'Looking ahead, we expect our growth momentum to continue as we remain focused on several initiatives under each of our four key pillars, including driving growth in existing store network, opening new stores, driving operational efficiencies and delivering further upside through our private label and e-commerce offerings. Overall, we are pleased with the performance in the first quarter, marking a good start to 2025, and we look forward to continuing to deliver on our strategy throughout the rest of the year.' Financial summary Revenue performance driven by LFL sales and new store expansion Revenue grew a healthy 7.3% YoY to $2.1 billion in Q1 2025 driven by LFL sales growth of 3.6%, supported by strong trading during the Ramadan period. The good revenue performance was also driven by new store openings and high-volume growth across certain product categories, particularly in fresh food and lifestyle products. Fresh food category revenue grew 7.9% YoY in the first quarter, driven by the Ramadan period, improved consumption trends. Electrical goods category witnessed revenue growth of 29.0% YoY, mainly due to an increase in sales across higher value items. Lifestyle products grew 6.9% YoY despite pressure as customers opted for more value products. Consumer Packaged Goods (CPG) sales grew steadily at 1.4% YoY, with the sales increase mainly driven by strong volume growth, which was partly offset by some pricing pressure as a result of promotional campaigns. E-commerce remains an important component of Lulu's growth strategy, with sales +25.3% YoY and customer count +26.1% YoY. Segment revenue performance driven by growth across all markets Lulu delivered revenue growth across all segments in Q1 2025, with particularly strong performances in KSA and Oman. The UAE, Lulu's largest market, recorded a mid-single digit revenue increase of 5.2% YoY, led by particularly strong performance in the fresh food segment, which grew 15.6% YoY. This was further supported by strong e-commerce sales in the UAE which saw robust growth, rising 40.1% YoY, supported by an increase in sales through aggregators. In the Kingdom of Saudi Arabia, revenue rose by 10.3% YoY, primarily driven by new store openings in last 12 months and strong LFL growth. Other key markets also delivered solid results in Q1 2025, with revenue in Oman increasing 7.8% YoY as a result of strong growth in the electrical goods product category, Qatar up 6.7% YoY following a good trading period during festive season, and Kuwait up 4.8% YoY, with supermarket sales contributing c.50% of overall growth in the region, further supported by a strong uptick in e-commerce sales. Profitability margins supported by cost efficiencies amidst promotional activity Gross profit increased 4.0% YoY to $464.5 million, with gross margins reaching 22.3% in the period, down 70 basis points compared to the prior year. This margin reduction was mainly due to promotional campaigns to drive higher footfall into Lulu stores during the festive period. EBITDA grew 6.4% YoY to $214.1 million, supported by improved operational cost efficiencies, which helped offset the lower gross margin. As a result, Q1 2025 EBITDA margin remained broadly stable at 10.3% compared to 10.4% in Q1 2024. On a post-lease expense basis, EBITDA margin improved by approximately 8 bps, reflecting Lulu's continued operational discipline. Net profit increased by 15.8% to $69.7 million, with net profit margins improving by 25 basis points as a result of stronger EBIT margin and lower interest expense, despite higher taxes in the period. Robust balance sheet During the quarter, net debt decreased to $2.3 billion, with net debt/EBITDA improved from 3.2x in December 2024 to 2.9x at the end of Q1 2025. Excluding lease liabilities, leverage improved from 1.3x to 0.9x over the same period. Strategic progress Lulu continues to make good progress on delivering on its growth strategy, having rolled out five new stores in the period, delivered good LFL growth within its existing stores and also benefitting from further upside opportunities across Private Label and e-commerce sales. During Q1 2025, Lulu opened two hypermarkets and three express stores, adding 22,339 sqm of retail space in the period, with the Company's total retail space up 2% to 1.34 million sqm, as at the end of Q1 2025. Within this, Lulu was pleased to open a 10k+ sqm hypermarket in Makkah and an express store in Madinah, two uniquely located stores with high footfall given the proximity to religious landmark cities in KSA. In addition to the two stores in KSA, Lulu also opened two express stores in the UAE, alongside a Hypermarket in Bahrain. Lulu remains on track with its store roll out plans, with the Company expending to open a total of 20 stores in 2025, with the remaining 15 stores expected to open over the course of the year. Lulu is also pleased to have signed a Memorandum of Understanding (MOU) with The Endowment and Minors Trust Foundation (Awqaf Dubai) for the development of a group of retail stores as part of Dubai's endowment projects. Under the partnership, Lulu will collaborate with Awqaf Dubai on upcoming community projects to develop shopping facilities that will better serve and enhance the retail experience of residents and visitors, while also contributing to Awqaf's broader social and economic objectives. Following the successful roll out of its loyalty program across all regions in 2024, Lulu's Happiness Loyalty programme continues to see good momentum in new members, having added c.904k new members in Q1 2025. Lulu now has a total of c.6.3 million loyalty members enrolled onto the program compared to the c.5.5 million at the end of 2024, with the loyalty program linked to c.65% of sales. Earnings conference call A conference call to present earnings, followed by a Q&A session with management will be held on Wednesday 14 May 2025 at 14.00 (GST) / 11.00 (BST). Interested parties are invited to join the call by clicking here.
Gulf News
17-02-2025
- Business
- Gulf News
E-commerce and data insights driving growth in the private label segment, says Director, Retail Holdings, LuLu
Gulfood 2025 spotlights pioneering developments across the food and beverage landscape. In this dynamic environment, private labels — once seen merely as cost-effective alternatives — are evolving into sophisticated competitors that often rival top national brands. Could you give us an overview of this transformation? Over the past few years, the Gulf region's food and beverage sector has seen remarkable growth, and private labels have taken the opportunity to prove they can offer quality and innovation on par with, or exceeding, well-established names. By incorporating technological advances, data analytics, and e-commerce capabilities, private labels are now redefining consumer perceptions. At LuLu Hypermarket, for instance, we leverage digital tools and market insights to upgrade our offerings, ensuring our products remain fresh, convenient, and competitively priced. You've mentioned e-commerce as a driver of private label success. How is the Gulf region's e-commerce market shaping this growth at LuLu? The Gulf region's e-commerce scene is booming, particularly with busy lifestyles creating demand for convenient, at-home purchasing. LuLu uses dedicated online platforms to highlight our private label lines — ranging from pantry staples to ready-to-cook meal kits — so customers instantly see these products when they browse. We've also refined our search placement, added promotions, and simplified navigation to capture casual browsers. Coupled with strategies like product bundles, cross-promotions, and loyalty rewards, we're transforming one-time buyers into repeat, loyal customers. Data analytics appears to play a critical role. How do you use it to refine private label offerings? Data is crucial in understanding what resonates with consumers. At LuLu, we track popular items — particularly during peak seasons — and adapt our line-up accordingly. Our Happiness Loyalty Program consolidates data from both online and in-store purchases, revealing recurring consumer behaviour. By consistently analysing this information, we can decide which products need tweaking, which ones to discontinue, and where to introduce fresh lines — like our LuLu Goodness range of healthier options. Many Gulf consumers still enjoy visiting physical stores, especially for fresh items. How do you merge online and in-store experiences? We've adopted an omnichannel strategy. A shopper might discover a LuLu-branded energy bar through our e-commerce website, then test it in-store with a discount, and finally reorder via our app. Every step is linked through our Happiness Loyalty Program, ensuring consistent points accumulation and relevant recommendations. How do you leverage social media for private labels? We collaborate with local influencers, chefs, and nutritionists to showcase our LuLu ready meals or LuLu Goodness snacks, presenting them as trend-focused and high-quality choices. This not only generates credibility but also counters any lingering misconceptions that private labels are low-quality. Instead, consumers see firsthand how our products fit seamlessly into healthy and convenient lifestyles. Could you touch on the new technologies you foresee significantly impacting private labels in the Gulf? AI-driven recommendations can personalise product suggestions based on past purchases or dietary preferences, while subscription models like curated boxes lock in repeat business and encourage people to try new lines. Even more exciting are VR and AR, which can bring immersive experiences online. Imagine walking through a digital grocery aisle or watching an interactive cooking demo from home. These innovations merge the informative depth of e-commerce with the sensory appeal of in-store shopping. Finally, as private labels continue to shed the budget label and step into the spotlight, what's next? We're witnessing a genuine shift in consumer mindsets, driven by data-backed personalisation, robust e-commerce platforms, and strong influencer partnerships. For LuLu, this means consistently enhancing our omnichannel engagement and exploring forward-thinking technologies. The ultimate goal is to deliver value, quality, and convenience on par with national and international brands — or even surpass them. With private labels poised to capture a larger share of the market, the future is about broadening horizons: better products, smarter strategies, and an unwavering focus on the evolving needs of Gulf consumers. Sign up for the Daily Briefing Get the latest news and updates straight to your inbox
Khaleej Times
17-02-2025
- Business
- Khaleej Times
The Digital Revolution: E-commerce and Data-driven Growth for Private Labels
Amidst the Gulf region's rapidly expanding food and beverage market, private labels have gone from being basic, cost-effective alternatives to formidable contenders that frequently compete with — if not outshine — well-established national brands. Bolstered by the surge in online shopping, a strong focus on data-driven insights, and changing consumer expectations, these store-branded products are redefining industry standards. Furthermore, with Gulfood 2025 — the world's biggest annual food and hospitality exhibition — on the horizon, innovators across the sector are eager to present groundbreaking advancements that highlight private labels' rising prominence in this evolving marketplace. This transformation is evident at LuLu Hypermarket, where the private label strategy — led by Shamim Sainulabdeen — demonstrates how the effective use of technology, data, and targeted outreach can turn in-house brands into market frontrunners. E-Commerce as a Launchpad The Gulf's vibrant e-commerce landscape, amplified by the growing demand for convenient at-home shopping, has created an ideal platform for private label expansion. Retailers like LuLu leverage specialised online portals to feature their store-brand products prominently, encompassing everything from pantry staples to ready-to-cook meal packages. Through strategic search results, exclusive promotions, and user-friendly interfaces, these items are becoming more visible — and appealing — to digital shoppers. Turning casual visitors into committed customers involves several strategies. LuLu, for example, offers product bundles that combine complementary private label items at special rates. Cross-promotions demonstrate how switching from major labels to LuLu's equivalents can deliver savings, loyalty perks, and exceptional quality. Further enriched by LuLu's Happiness Loyalty Program, these targeted efforts effectively boost online conversions. Data-driven Personalisation Digital platforms deliver a wealth of insights into consumer preferences, from top product searches to peak seasonal demands. At LuLu, these insights guide the development and promotion of private label offerings. By closely monitoring which items perform best — especially during these peak seasons — LuLu refines its assortment to match consumer needs. A central element of this model is the Happiness Loyalty Programme, which records transactions made both online and in-store. This comprehensive data reveals not only the private label products shoppers frequently purchase but also uncovers new opportunities for product innovation. By continuously analysing user feedback, LuLu tailors offers, expands its lineup (including healthier choices under LuLu Goodness), and gauges how limited-time deals resonate with specific audience segments. The Omnichannel Ecosystem Although digital shopping channels have surged in popularity, many Gulf consumers still value in-person visits — particularly when assessing food freshness and quality. Recognising this, LuLu seamlessly integrates its hypermarket network with its online platform to create a well-rounded omnichannel experience. For instance, a shopper could first see a LuLu-branded energy bar online — potentially via a suggestion from the loyalty programme — then sample it at a discount in-store, and later repurchase it through LuLu's e-commerce website or mobile app. Throughout this process, the Happiness Loyalty Programme remains cohesive, accumulating points and suggesting related products — no matter how or where the transaction takes place. This synchronised approach caters to longstanding shopping traditions while offering the convenience today's consumers expect. It also expands opportunities for promoting private label items through a mix of digital ads, in-store campaigns, and personalised offers. Social Media Engagement With social media usage in the Gulf among the highest in the world, platforms like Instagram, TikTok, and YouTube serve as effective avenues for boosting awareness of private label lines. Retailers like LuLu collaborate with regional influencers, chefs, and health experts to spotlight specific product ranges — ranging from LuLu ready meals to LuLu Goodness (nutritious snacks) — as not only trendy but also trustworthy and of high quality. This approach goes beyond building brand loyalty; it also challenges the assumption that private labels are inherently lower-end choices. By offering visually compelling content and relatable testimonials, retailers are effectively demonstrating that in-house brands can rival — or surpass — the more recognised global names. Emerging Tech, Future Prospects Continuous technological advancements promise fresh opportunities to reshape the private label space: AI-enhanced Recommendations Integrating cutting-edge algorithms into retail platforms enables precise product suggestions, based on dietary needs, past shopping habits, or popular local flavours — boosting interest in private label items. Subscription Models The rise of curated grocery boxes, meal kits, and 'discovery sets' makes it easier for retailers to lock in consistent revenue while helping shoppers discover new products, including private label offerings. VR and AR Experience Interactive Virtual Reality (VR) and Augmented Reality (AR) experiences — such as virtual aisles, hands-on product demos, or online tastings — merge e-commerce's convenience with the tactile appeal of in-store shopping. Conclusion Private labels in the Gulf have moved far beyond the confines of the budget aisle. By employing data analytics, e-commerce strategies, loyalty programmes, and savvy influencer partnerships, these store-brand products have made substantial gains in quality, originality, and popularity.
Trade Arabia
11-02-2025
- Business
- Trade Arabia
Lulu 2024 revenues hit $7.6bn; net profit $216m
Lulu Retail (Lulu), the largest and fastest growing pan GCC full line retailer, today announced a net profit from continuing operations of $216.2 million in FY 2024, up 12.6% YoY, with margins expanding by 20bps. Q4 2024 net profit from continuing operations totaled $64.7 million, with net profit margin of 3.4%, the company said announcing its preliminary and unaudited financial results for the three-month and 12-month periods ended December 31, 2024. Lulu Retail delivered solid revenue growth in Q4 2024, with revenue reaching $1.9 billion in the period, up 1.8% YoY. FY 2024 revenue increased by 4.7% YoY to $7.6 billion, with revenue growth driven by particularly strong performance in Oman and high-growth markets such as the UAE and Saudi Arabia, alongside broad-based growth across key product categories, the company said. Key Highlights: • Good progress on new store rollouts, having opened a total of 21 new stores in 2024, including nine in Q4 2024, with the company operating a total of 250 stores as at December 31, 2024; • Contribution from higher-margin Private Label products reached 29.6% of total retail revenue in FY 2024, a 110 bps increase YoY, with e-commerce sales up 70% YoY, representing 4.5% of total retail sales; • Lulu Happiness Loyalty programme membership now live across all GCC countries, with approximately 5.5 million members, driving improved customer engagement; • FY 2024 revenue growth of 4.7% YoY, with LFL growth increasing by 2.3% in period, mainly driven by higher footfall across stores; • FY 2024 EBITDA increased by 4.4%, with margins of 10.32%, stable YoY, with gross margin expansion offset by higher lease expenses in KSA and Qatar; EBITDA margin post leases expanded by 118 bps to 6.3% • The Board of Directors has recommended a dividend of $84.4 million, equating to 3 fils per share, reflecting Lulu Retail's commitment to delivering shareholder value while maintaining financial flexibility to support future growth initiatives, in line with the company's dividend policy; • Record IPO on ADX in November 2024 raised $1.72 billion with total aggregate demand of $37 billion - an oversubscription level of 25 times; Lulu also achieved numerous industry awards in the 2024 period. Saifee Rupawala, Chief Executive Officer of Lulu Retail, commented: 'The past 12 months have been transformative for Lulu Retail, underpinned by our significantly oversubscribed IPO on the ADX and robust growth across all aspects of our business. Our focus on expanding our store network which now totals 250 stores across the GCC and investing in higher-margin categories, coupled with the rapid evolution of our e-commerce platform, has delivered strong results whilst our Happiness Loyalty Program, which now has over 5.5 million members, continues to elevate customer engagement, fostering deeper connections with our communities. As we look toward 2025, we remain confident in our ability to build on this momentum, leveraging our operational strength and market leadership to capture new opportunities and create lasting value for our investors and customers alike.' Continued progress on strategic growth pillars Lulu Retail's growth strategy is focused on four key pillars: Enhancing its existing store network, expanding its store network, driving operational efficiencies and delivering revenue upside through Private Label and loyalty program expansion. The FY 2024 operational and financial performance is evidence of Lulu's strong operating model and the Company's continued progress on its strategic growth pillars. Lulu remains confident in delivering on its medium-term outlook, reinforcing its position as a growth-oriented, customer-centric market leader, maintaining its position as the largest full-line pan-GCC retailer, the company said. Lulu Retail continued to expand its store footprint in 2024, making good progress on its strategic growth pillar, having opened a total of 21 new stores in FY 2024. This was supported by the launch of nine new stores in Q4 2024 alone, in the form of seven express stores and two mini-markets, adding a total of 12,980 sq m of selling space. Over the 12-month period, Lulu introduced a total of six hypermarkets, 12 express stores, and three mini-markets, increasing total selling space by 5% YoY to 1.3 million sq m. Notably, the company recently celebrated a key milestone following the opening of its 250th store in Jabal Omar, a key religious landmark in Makkah in Saudi Arabia. Another landmark store in Madinah is expected to open in Q1 2025. Approximately 70% of Lulu stores opened in FY 2024 are within the express and mini-market store format, further supporting the company's transition to an asset-light model.
