UAE: Lulu talks about hypermarket sourcing

The LuLu group has a network of 135 stores, with a combined store space of 22,000,000 feet, a workforce of 40,000 staff members and a turnover of $6.9 billion. The company has 26 offices scattered around the world for the sourcing of products. The hypermarkets of LuLu can be found in Middle Eastern countries like Qatar, Oman, Bahrain, Saudi-Arabia, UAE, Kuwait and Egypt, but also in Asian countries like India, Indonesia and Malaysia. “We’re a family company and we’ve been around for 40 years,” says director Salim M.A.

LuLu has set up a system for logistics and cold storage in every region where the company is present. The company sources produce from all over the world, such as from Spain, the US, the Netherlands, France, Italy, Serbia, China, Vietnam, India and Sri Lanka. This wide range of sources is very convenient for the home market, as Dubai has become an increasingly multicultural society.

“Dubai has always been a good retail market. In the last 7 years, the market has been booming. Technology is improving and Dubai consumers are searching for good products, good quality and good deals.” According to Salim M.A., both quality, service and price are all important factors for this market.



There is currently a hype taking place regarding organic produce. Organic fruit and vegetables have become popular because of the health benefits. Lulu has been one of the strongest promoters for organic produce. "We’re currently running two to three promotion campaigns per year. We’re also running campaigns for kids to encourage them to eat more fruits and vegetables.”

Apart from sourcing from a lot of international suppliers, LuLu also sources organic produce from local growers. The local government actively supports the organic sector. “Sourcing organics from outside of the UAE can be challenging, as we need to be careful with the proper certifications. For local growers, this isn’t as much of a problem,” says Salim M.A.

The Middle Eastern market is seeing a slow but steady shift in the packaging of produce. Most consumers still want to feel a product before deciding to buy it or not. “About 30% of our produce is now pre-packed. We’re also providing more fresh cut produce, as more consumers show a demand for convenient solutions.



As Dubai is a multicultural society, consumers demand products from a wide range of foreign countries. LuLu is able to provide these products through cooperation with the embassies of these countries. “For instance, pomegranate has become very popular. We’re able to market pomegranate quite well.”

The Middle East has risen in importance as an import market due to the Russian embargo. As trade with Russia has become impossible, countries like Poland or Greece have turned to Dubai to market their apples, peaches and berries. “The consumers benefit from this. The quality is good, while the prices are very competitive.”

While LuLu also sources products like bananas from Latin American countries, logistics remain a challenge. “We still need a solution for this, though the quality is good. We source bananas from Ecuador and apples and grapes from Chile.”



“The strategies for LuLu’s hypermarket network are quite simple. We aim to bring the best quality products to our customers with the best service possible. In the coming years there are lots of projects coming up, such as opening stores in Saudi Arabia, India, Malaysia and Indonesia. We’re very confident in our market. Dubai is a great region and the market is huge.”