Revenue for the first half of the year at Lulu retail has increased by 5.9% compared to the previous year, reaching a total of $4.1 billion.
Lulu Retail, a leading full-line retailer in the GCC region, has unveiled its growth strategy for the remainder of 2025, focusing on expansion in private label and e-commerce sectors.
Emphasis on Private Label Growth
Lulu's private label has shown promising growth, with a 3.5% year-on-year increase during the first half of 2025. This category accounted for 29.7% of the retail revenue. The retailer plans to continue its focus on this category, aiming to innovate and strengthen its market share.
E-commerce Expansion
E-commerce sales saw a significant surge, increasing by 43.4% year-on-year, reaching $108 million and representing 5.6% of the retail revenue. Lulu aims to boost its e-commerce sales further by enhancing its category presence on aggregator platforms and leveraging its omni-channel offerings.
Store Expansion and Loyalty Program
Lulu Retail plans to open 20 new stores in 2025, with seven stores already opened in the first half and four more in July. The company's Happiness loyalty program added one million new members in the second quarter, bringing the total membership to 7.3 million. This growth indicates a strong engagement strategy that could support both online and offline sales.
Value-Focused Initiatives
Lulu introduced the 'Lot' store-in-store format, targeting budget-conscious shoppers with products priced under Dh30. This initiative aims to tap into the fast-growing home product, value fashion, and lifestyle segments.
Financial Performance
Lulu Retail reported a 9.1% year-on-year increase in net profit to $127.0 million in H1 2025. EBITDA grew 7.6% year-on-year to $204 million in H1 2025. Gross profit increased 6.5% year-on-year to $468 million in H1 2025.
Saifee Rupawala, CEO of Lulu Retail, stated that the steady and resilient H1 2025 performance is a testament to their growth pillars. The customer count for Lulu Retail's e-commerce increased by 45.4% year-on-year in Q2 2025.
Lulu Retail declared an interim dividend of $98.4 million (3.5 fils per share) for H1 2025, with a payout ratio of 78% of H1 2025 distributable profits.
Regional Performance
In Kuwait, revenue increased by 4.9% year-on-year, demonstrating consistent positive performance. In Saudi Arabia (KSA), revenue grew by 3.8% year-on-year, aided by strong electrical goods sales and new store openings. In the UAE (Largest market), Q2 revenue increased by 9.4% year-on-year, driven by continued high demand for fresh food and supported by Lulu's omnichannel strategy.
Full-Year Target
The full-year target of 20 new stores remains on track. Private label and e-commerce continue to play pivotal roles in Lulu's growth approach.
For the latest news updates, follow Lulu Retail on X, Instagram, and Facebook.
Technology will play a crucial role in boosting Lulu Retail's e-commerce sales by leveraging advances in digital marketing and user experience to enhance its online presence. The private label growth strategy also acknowledges technology's importance in innovation, as Lulu aims to use data analytics to better understand consumer preferences and develop tailored products.
With the introduction of the 'Lot' store-in-value segment, Lulu Retail seeks to capitalize on the growing trend of technology-driven value shopping, making budget-friendly options more accessible to consumers across the GCC region.
