The real Dubai toy story

For the past 240 years generations of wide-eyed children have flocked to Hamleys toy store in London's Regent Street to marvel at all the delights on display.

Now youngsters in the UAE can share their joy following the opening last week of the first Middle East outlet at The Dubai Mall.

Retail Arabia (RA) – the company behind the local franchise – struck a deal with Hamleys in mid-2006. It has taken more than two years for the store to welcome its first customers as the opening of the mall was delayed twice. But according to Nabil Daud, RA's Managing Director and CEO, the wait was worth it. "We always wanted to launch the first flagship in the Middle East in Dubai Mall," he said. "I'm not annoyed the mall didn't open on schedule as it meant we could use the extra time to make the store even better.

"I've been going to Hamleys since I was a child and always loved it, so when the opportunity presented itself it was a no-brainer."

With crowds lining up for last Tuesday's grand opening and families thronging the store at the weekend, there has been no shortage of customers. And with Eid Al Adha and Christmas just around the corner Daud, 36, is confident the business will do well. "Hamleys has opened with positive responses from UAE customers," he added. "It is still early to judge on the impact of the global financial crisis but we don't see any impact at the moment."

There are plans for a number of outlets across the Gulf, including another in Dubai that will open at Mirdiff City Centre at the end of next year. RA is looking for locations in Singapore and has an employee out there scouting for premises.

"Location is key because the stores have to be places for families. Hamleys is unique. It's a magical experience and that's what was lacking in the market. The store is somewhere children can be children and play and not feel they are being boxed in. It's an interactive environment."

Hamleys has revived its fortunes in the UK, recording pre-tax profits of £8.2 million (Dh46m) in the year to March 31, 2007.

The Middle East toy market is worth $1.5bn (Dh5.5bn) per year and has been growing at 11.8 per cent annually. The average yearly spend per child on toys and video games in the region is $327 (Dh1,200) – twice the level in Europe and the second largest after North America.

Daud, from Oman, lived in Dubai previously and moved back to the emirate from London in 2005. He was amazed by the emirate's transformation.

"I lived here for three years at the end of the 1990s before moving to Britain but decided it was the right time to found RA," he said.

"The number of tourists has grown in leaps and bounds as Dubai has become more cosmopolitan. International brands have been coming to the region for a long time but there was a lack of boutiques until a few years ago. Now the market has opened up and every single brand you can think of is here or planning to come here."

RA's parent company's, Daud Investments, is run by Nabil and his three brothers. Hamleys is the first franchise but many others are under negotiation, including high-end designer Oscar de la Renta, which will be the next to open. The rest are a closely guarded secret. "Oscar de la Renta is a big thing for us because the designer is as iconic as Chanel in the US."

Daud wants to house all his brands under the same roof and is discussing possibilities with Emaar, the developer of The Dubai Mall. But for now he continues to put all his efforts into Hamleys.

Walk into the 32,000 sq ft store and you can't help being sucked in by the energy of the staff. Thousands of people applied for jobs there and 500 were shortlisted and interviewed by Daud. A key requirement was a fun personality – not surprising considering the assistants have to be on the ball throughout their 12-hour shifts. They demonstrate toys and join the marching band as it parades through the store.

As one throws an aeroplane around the entrance another steers a remote controlled car, while a third zips around on a go-kart. Others amaze the young shoppers with magic tricks.

There are cuddly toys in the entrance and board games and bikes near the back. Daud and I settled in a two-storey Barbie doll's house for the interview, sitting amid pink thrones and giant flowers with the Spice Girls blaring out of speakers.

Although Daud has no children his nephews in Oman and London are looking forward to making their first visit to Dubai. He worked long hours preparing for the opening though he said his team had spent even more time than him at the store. Some of his hobbies, such as tennis, have fallen by the wayside.

But surely the fact that he goes to work and plays with remote controlled helicopters – he managed to get one stuck among some balloons during my visit – makes it all worthwhile? "I've not had much time off in the past few weeks, especially as I've been working over the weekends, but I always play in the office – it helps me relax.

"I have buyers but I have to play with the toys we sell as I like to give my two cents' worth. I'm hoping to take a break towards the year-end to recharge my batteries."

There are over 500 own-brand products, with more expected in the New Year, and 100,000 different lines in total. "Hamleys is a premium store catering to the masses. It is needed for its magical environment in every key city – it's a joy for visitors and we're excited about the future."


The history of Hamleys

The iconic Hamleys store started off as Noah's Ark in 1760 when William Hamley had dreams of opening the best toy shop in the world. Although it has always been in London, the seven-floor Regent Street store, pictured right, did not open until 1881 as public demand meant the company, then run by Hamley's grandsons needed more space.

It almost went bust during the 1920s recession, but was taken over by the Tri-Ang company, which turned its fortunes around.

Hamleys opened a second store in the northern city of York in 1987 but it closed less than 12 months later. However, subsequent expansion to Ireland, Jordan and UK airports has proved more successful. Its new store at The Dubai Mall is the first in the UAE – but there are more planned in the country and wider region as well as Singapore, Russia, China and India.

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