UAE firm to invest Dh100m in retail expansion

The UAE-based general trading company Abughazaleh Abco Group plans to invest Dh100 million in opening 30 stores in the next five years following 24 per cent increase in sales in 2014, its CEO said.

Midhat M. Abu Ghazaleh said that starting from 2015 the group aims to increase the total number of store to 35 by 2020.

“We opened 4 stores in the past 2 years. The new plan is to launch 6 stores per year on average, including an online store,” said Abu Ghazaleh.

In June 2015, the group’s advanced online platform will be launched to provide competitive offers on apparel, footwear, home linen, toys, toiletries, outdoor furniture and electronics.

Abu Ghazaleh said: “Online sales are the future of the retail fashion segment, due to convenience and competitive pricing. E-commerce has been witnessing double growth in sales on annual basis.”

According to Abu Ghazaleh, Abco is currently available in 260 points of sale in various locations across Europe and plans are in place to increase the staff to match the expansion plans. “We increased the staff by 35 per cent in 2014,” commented Abu Ghazaleh.

Abco witnessed higher demand for apparels in 2014, with record sales increase in women’s dresses, men’s casualwear and children footwear.

“We are in process of launching more brands available for franchising, including Sombra, a women’s fashion brand; Trio, which serves as a family destination stores for fashion, footwear, home linen, and gift items; and Apando, the footwear and accessories brand,” he added.

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