GMG, a prominent player in the retail and distribution sector, announced on Tuesday its ambitious plans for significant expansion in partnership with VF Corporation, a global leader in branded lifestyle apparel, footwear, and accessories. This strategic move builds upon a successful 12-year collaboration between the two companies and aims to extend VF’s brand reach across the Middle East and North Africa (MENA) and Southeast Asia (SEA) over the next five years.
The plan involves the establishment of over 300 new mono-brand stores across these regions, substantially increasing the current count of 90 stores operated by GMG. This expansion signifies a major push to broaden consumer access to VF’s esteemed brands, which include Vans, The North Face, and Timberland.
In the MENA region, the focus will primarily be on the UAE and Saudi Arabia, with VF’s brands poised to enhance their presence significantly. Furthermore, the expansion will extend to North Africa, centering on Egypt as a strategic market. Notably, VF’s The North Face brand is set to make its debut in the North African market under this agreement.
Mohammad A. Baker, Deputy Chairman and CEO of GMG, expressed his enthusiasm about the expansion, highlighting the aligned vision and commitment to delivering exceptional consumer experiences and promoting active lifestyles. Baker anticipates continued success in this transformative partnership with VF Corporation.
This expansion is well-timed, considering the global retail market’s current trajectory. Valued at $28.3 billion in 2023, the market is projected to grow to $37.7 billion by 2027. The UAE retail sales volume alone is expected to reach approximately $114 billion by 2026.
The growth potential in the SEA market is particularly notable, driven by factors like rising household incomes, developing infrastructure, and increasing tourism. Athletic wear’s rising popularity, fueled by a growing focus on health and wellness, positions the region as a burgeoning hub for sports goods retail.
Martino Scabbia Guerrini, Executive Vice President, Global Chief Commercial Officer, and President of Emerging Brands at VF Corporation, shared his excitement about the enhanced partnership with GMG. He emphasized the combined strengths of the companies in driving regional marketplace strategies, offering innovative solutions, and strengthening their presence to better serve local consumer needs.
This strategic partnership between GMG and VF Corporation is set to redefine the retail landscape in the MENA and SEA regions, marking a new era of growth and opportunity for both companies.
