Majid Al Futtaim Expands Luxury Retail Landscape with 30 New Stores in the Middle East

Table of Contents

1. Key Highlights
2. Introduction
3. The Luxury Retail Boom: Setting the Stage
4. Majid Al Futtaim's Strategic Expansion Plan
5. The Role of THAT Concept Store
6. Implications of the Expansion
7. The Competitive Landscape
8. Conclusion
9. FAQ

Key Highlights

• Majid Al Futtaim announces plans for over 30 new luxury retail stores across the UAE and Saudi Arabia in 2025, featuring Italian brands Eleventy, Corneliani, and Poltrona Frau.
• The first Eleventy standalone store opens in Marina Mall, Abu Dhabi, showcasing the company's commitment to high-quality Italian craftsmanship.
• The expansion is a response to growing consumer demand for luxury brands in a market where options are abundant.

Introduction

As the world continues to recover from the economic challenges posed by the pandemic, luxury retail is witnessing a renaissance, particularly in regions like the Middle East. A striking illustration of this trend is Majid Al Futtaim’s recent announcement to significantly expand its luxury retail presence through the introduction of over 30 new stores in prime locations across the UAE and Saudi Arabia, featuring renowned Italian brands such as Eleventy, Corneliani, and Poltrona Frau. This strategic move comes in response to a burgeoning demand for luxury goods among Middle Eastern consumers who are increasingly seeking high-quality products that reflect their sophisticated tastes. This article explores the implications of Majid Al Futtaim's expansion, the brands involved, and the evolving landscape of luxury retail in the region.

The Luxury Retail Boom: Setting the Stage

The luxury retail market has experienced a consistent upswing, particularly in the Gulf Cooperation Council (GCC) countries, where a growing middle and upper class has led to elevated consumer spending. In the UAE alone, the luxury market is expected to grow 9% annually, driven by affluent shoppers and a vibrant tourism industry that draws visitors from around the globe.

According to industry analysts, the GCC luxury market is projected to be valued at approximately $20 billion by 2026. The increase in consumer spending power, a thriving retail environment, and the penchant for luxury brands that resonate with cultural identities are pivotal factors propelling this growth.

Majid Al Futtaim's Strategic Expansion Plan

Majid Al Futtaim, a leading family-owned conglomerate in the Middle East, operates numerous retail outlets, shopping malls, and hotels across the region. The company has chosen to capitalize on the luxury retail boom with its meticulous growth plan that entails significant partnerships with eminent Italian brands.

New Store Openings

The proposed expansion includes:

• Eleventy: This premium Italian brand will unveil standalone stores in major shopping destinations, including the Mall of the Emirates and Solitaire Mall in Saudi Arabia. Currently, they operate a shop-in-shop format that has garnered considerable traction, paving the way for their standalone operations.
• Poltrona Frau: Set to open its first store in Riyadh’s Centria Mall in May 2025, this brand epitomizes luxury and craftsmanship in the furniture sector.
• Corneliani: After a successful regional debut in April 2025 at Solitaire Mall, this brand is expected to expand further, enriching the luxury clothing segment.

The stores are strategically located in some of the Middle East’s most prestigious shopping malls, ensuring high foot traffic and visibility.

Addressing Consumer Demand

Fahed Ghanim, CEO of Majid Al Futtaim Lifestyle, asserts that their ambitious strategy is designed to offer distinctive luxury brands that integrate timeless craftsmanship with contemporary aesthetics. "In a region where customers have an abundance of choice, our ambition is to curate a portfolio of luxury brands that provide something truly unique," Ghanim stated.

The focus on brands like Eleventy, known for their quality and fine craftsmanship, aims to fulfill the growing consumer desire for luxury goods that not only pledge exclusivity but also encourage a connection to the heritage and artistry of Italian craftsmanship.

The Role of THAT Concept Store

In a bid to nurture potential luxury brands, Majid Al Futtaim has established the innovative training ground known as THAT Concept Store. This platform allows emerging luxury brands to test their market viability through shop-in-shop formats, providing invaluable insights into local consumer preferences.

Case Study: Eleventy's Journey

Eleventy’s trajectory in the Middle East began with a pop-up shop at Mall of the Emirates. This pilot program allowed the brand to calibrate its offerings based on consumer feedback. Following the success of this model, Eleventy has experienced exponential growth, culminating in the announcement of five standalone locations throughout the UAE and Saudi Arabia.

Implications of the Expansion

The introduction of 30 new luxury retail locations introduces a multitude of implications for the market. It signals a robust recovery as well as a transition towards more refined consumer preferences. This project will not only enhance Majid Al Futtaim’s portfolio but will also aid in the diversification of the local economy, reducing reliance on traditional sectors such as oil and gas.

The E-Commerce Frontier

The integration of e-commerce plays a significant role in this expansion strategy. Majid Al Futtaim’s investment in digital sales, which saw a notable 31% increase in 2024 alone, indicates a promising avenue for luxury retail. Online platforms are slowly becoming the go-to option for consumers preferring the convenience of shopping from home, further emphasizing the necessity for brands to maintain a strong digital presence.

The Competitive Landscape

While Majid Al Futtaim is making stellar strides in the luxury market, it is not without competition. Rivals like Al Habtoor Group and Dubai Holding are gradually also strengthening their foothold in this lucrative sector, indicating that brands will need to innovate continuously and adapt to shifting consumer tastes.

Conclusion

Majid Al Futtaim’s decision to launch over 30 new luxury retail stores signals an era of growth and sophistication in the Middle Eastern luxury market. With a focus on Italian craftsmanship and quality, this expansion will likely influence consumer habits and further fuel the region's appetite for luxury goods. As competition intensifies, the narrative surrounding luxury retail in the Middle East will inevitably evolve, with Majid Al Futtaim poised to be at the forefront of this revolution.

FAQ

1. What brands are being introduced with the new stores?
Majid Al Futtaim is introducing luxury brands including Eleventy, Corneliani, and Poltrona Frau in their new retail expansion.

2. Where will the new stores be located?
The stores will be placed in prime shopping destinations throughout the UAE and Saudi Arabia, such as Mall of the Emirates, Dubai Mall, and Solitaire Mall.

3. How many stores in total is Majid Al Futtaim planning to open?
The company plans to open over 30 new luxury retail stores as part of its expansion strategy for 2025.

4. Why is there a growing demand for luxury retail in the Middle East?
Rising disposable incomes, increased tourism, and a growing middle and upper-class population contribute to higher consumer spending in luxury retail.

5. What is THAT Concept Store?
THAT Concept Store is a platform established by Majid Al Futtaim to nurture emerging luxury brands through pilot programs such as shop-in-shop formats that test market viability.

6. How has Majid Al Futtaim performed financially prior to this expansion?
In 2024, Majid Al Futtaim reported a 26% increase in revenue and a 31% boost in digital sales, underscoring a successful year leading into this expansion strategy.