Lulu Retail Holdings, the Gulf Cooperation Council’s premier full-line retail conglomerate, has unveiled an ambitious expansion strategy following exceptional financial results for fiscal year 2025. The retail giant reported record-breaking revenues of Dh29.1 billion, marking a 4.1% year-on-year increase, while net profits reached Dh753 million, exceeding previous quarterly projections.
The company’s growth trajectory will accelerate with plans to establish 50 new retail outlets across key GCC markets between 2026 and 2028. This expansion follows the successful opening of 20 new stores throughout 2025, bringing Lulu’s total operational footprint to 267 stores across the UAE, Saudi Arabia, Kuwait, and Bahrain. The new establishments will encompass various formats including hypermarkets, express convenience stores, and mini-markets, creating hundreds of new employment opportunities throughout the region.
Digital commerce emerged as a particularly strong performance sector, with e-commerce sales surging 38.6% annually and accelerating to 51.8% growth during the fourth quarter. Online penetration reached 7.3% of total retail sales in Q4, demonstrating robust consumer adoption of digital shopping channels. Investments in proprietary digital infrastructure yielded particularly strong returns, with sales through Lulu’s owned platforms growing at nearly double the rate of third-party aggregator channels.
The company’s private label portfolio continued to gain market share, accounting for 29.8% of total sales and contributing significantly to both revenue growth and margin enhancement. Financial stability improved with net debt reduction to Dh9.18 billion and enhanced leverage metrics on an IFRS 16 accounting basis.
Reflecting confidence in continued performance, Lulu’s board announced a second-half dividend of 3.5 fils per share, bringing the total 2025 dividend distribution to 7 fils per share, equivalent to approximately Dh724 million in shareholder returns.
CEO Saifee Rupawala emphasized the company’s disciplined expansion approach, noting that existing portfolio strength and digital capabilities position Lulu for sustained growth across GCC markets while maintaining attractive shareholder returns through consistent dividend distributions.