UAE- New format for expansion

(MENAFN- Khaleej Times) Marks & Spencer Al-Futtaim plans to expand its operations in Middle East by rolling out its new store format in the region as the retail sector posts a strong recovery in the wake of positive signs on the economic front, its top official said. The major British multinational retailer, popularly known as M&S and which has a long-standing franchise agreement with Al-Futtaim in the region, launched its first concept store at Mirdif City Centre to complement its planned expansion in the Middle East. Starting with Bahrain by the end of May, it will introduce the concept stores in other Middle East states later this year. "With the opening of Mirdif City Centre, we now have 10 stores across the UAE - six in Dubai, three in Abu Dhabi and one in Al Ain. In addition, we will be opening two more stores before the end of the year - one in Al Ghurair Centre in Dubai and the second in Manar Mall in Ras Al Khaimah," Mark Senior, head of operations at M&S Al-Futtaim, told Khaleej Times in an interview. Marks and Spencer's UAE managing director John Cooper and Emirati sales associate Badriya Hassan Abdulla Ali inaugurated the M&S Mirdif outlet last week. With the opening of two more stores in 2013, Marks & Spencer Al-Futtaim will have 12 stores in the UAE. "The UAE is a key strategic market for us and it is our intention to continue to explore opportunities to roll out further new concept stores as suitable property becomes available," Senior said. The retail chain, which is known for high-quality fashion, award-winning food and stylish homeware, introduced the new store format in 2012 and has proved a huge success in providing a visually stunning shopping experience whilst improving customer navigation and brand awareness. The new format includes better product segmentation according to local demographics and stronger emphasis on sub-brands such as its Autograph and Indigo collection. Distinctive M&S brands, prominent standalone sections with clearer signage and unique branding are other key features of new store. Middle East expansion Senior said M&S is well-prepared to introduce new concept stores in the region. The retailer will increase its store tally to 26 this year from 18 as it has plans to launch eight outlets in 2013. "M&S Al-Futtaim continues to go from strength to strength. With the opening of Mirdif City Centre we have now 20 stores across the region which will rise to 26 by year-end. With the opening of our first store in Jordan - at Taj lifestyle mall in Amman - followed by our opening in Lebanon this year, we will operate across eight countries," he said. "It is our intention to continue to drive the expansion of the M&S brand across the GCC and Middle East. In 2013 alone, we will open eight new stores, including our first store in Jordan which opened in January of this year. "We will be opening a second store in Jordan before the year end. This will be a 2,000sqm store offering a full range of fashion to our customers," he said. Senior said the opening of the brand-new, 1,400sqm M&S store at Mirdiff City Centre in Dubai will be followed by another new store in Bahrain City Centre by the end of May. "We also plan two more stores in the UAE later in the year. Following this, we will open our fourth store in Egypt in Cairo Festival City. This will be a 3,500sqm flagship store over two floors," he said. He said another "exciting" development is the entry into Lebanon for the first time with a new store in Beirut City Centre. "And finally, we are looking to open before year-end another brand new flagship concept in Kuwait. In addition to this, we are constantly reviewing our existing stores and identifying opportunities to refit to the latest standard. For example, our existing store in Bahrain's Seef Mall will be totally refitted to the new concept before the end of the year," he said. In reply to a question about investment in expansion, he said: "As per Al-Futtaim company policy, we are unable to disclose specific financial commitments, however, with eight new stores and a number of refits planned for 2013 it is clear that we continue to invest heavily in the development of the M&S brand." Strong sales growth Senior said M&S recorded a 10 per cent sales growth in the October-December quarter in 2012. The expansion drive will boost retail space by 33 per cent and increase staff strength from 1,000 to 1,400 this year. "Our existing business remains strong, driven by great products and excellent customer service. M&S is a brand that customers understand consistently delivers quality products at reasonable prices and it is this combination that saw our sales grow by 10 per cent in the last quarter of 2012." About M&S' popular product category, he said: "One of the best reasons to shop at M&S is our wide range of product categories. Therefore, whilst our great new womenswear ranges often receive the most attention, we also meet our customer needs when shopping for lingerie, menswear, beauty, food or children's wear." He said M&S constantly introduces new collections into its stores to ensure customers have access to the latest trends and styles. "We ensure our ranges fit the seasons, for example currently we have a huge range of high quality and innovative swimwear options for both men and women." To a question, he said the UAE is Al Futtaim's home market and remains the largest single territory in terms of number of stores, with 12 stores planned out of a total of 26 by the year-end. "All our markets are important to M&S and continue to receive support and development as required. For example as mentioned above we will open new stores in Jordan, Lebanon, Egypt, Bahrain and Kuwait this year outside of the UAE."