Clas Ohlson enters Dubai, plans 20 GCC outlets

Swedish retailer Clas Ohlson has forayed into Dubai and plans 20 outlets across the GCC countries over the next five years.

Seda Bayarlar, Managing Director of SYH Retail, which owns franchisee of Swedish retailer in the region, said: “Our focus after opening the first store is to open second one as early as possible in 2015. The plan after opening two stores is approximately to open 20 stores in GCC in 5-year time. We are still in search of locations and are in contact with parties. For the moment, much more focus is on the UAE for the second store. The most important thing for us is location.”

Clas Ohlson, which has more than 180 stores, has presence in four European countries and will enter Germany next year. Dubai outlet in Mirdif City Center is the company’s first store outside Europe.

SYH Retail is the retail unit of Kuwait-based Al Homaizi Group. The company is using Dubai as a platform to assess how the market responds before venturing into the Gulf region.

Bayarlar said: “We see Dubai such a cosmopolitan emirate covering majority of expats and because our offers are for everyone we will succeed in Dubai; if we can succeed in Dubai then we can answer needs of the people living in GCC. I don’t see one-to-one competition of Clas Ohlson in this market but yes (certain) products can be found in the market but not our smart solutions. Competition is good for consumer, it broadens the offer. We are not looking at the competition but the need of the consumer.”

She said the group is in discussion with more retailers. “We are continuously in search and looking at not only the brands but long term partnerships. We are talking to a number of (more) brands. The retail requires 5-10 year working plan; our 5 year plan is already in action and started; of course, it’s revolving according to the developments in the market.”

Klas Balkow, President and CEO of Clas Ohlson, said: “We have been growing in Nordics and are confident of becoming global player. Dubai came in to very nicely in our vision of growing internationally. Dubai is fantastic and dynamic area and it is going to be good opportunity to showcase good range of products.”

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