Leading Luxury’s Next Chapter
Chalhoub Group continues to shape the evolution of luxury retail across the Middle East, guided by a clear vision and a commitment to meaningful innovation. Under the leadership of CEO Michael Chalhoub, the Group is expanding its global footprint, strengthening partnerships and championing regional talent through platforms such as The Greenhouse project.
Long recognised as the Middle East’s leading luxury partner, Chalhoub Group continues to look forward, with its ongoing goals guided by “Vision 2033 – Bridging Horizons”, which aims to strengthen its core operations in the region whilst expanding globally.
“Our ambition is to be an international luxury brand builder, bridging cultures and inspiring dreams,” highlights Michael Chalhoub, CEO of Chalhoub Group. “This vision is supported by three strategic choices: strengthening and expanding our partnerships business in the Middle East and Latin America, scaling owned omni-channel retail brands and acquiring high-potential product brands to extend our ownership and expertise in luxury categories.”
Last year the company celebrated its 70th anniversary, a milestone that reminded Michael of the lessons passed down by his family: success is never a solo performance; it is a symphony composed of many notes, many hands and many hearts working in harmony.
They celebrated this milestone through the theme “Symphony of the Future”, reflecting their gratitude for the past while embracing opportunities and responsibilities of the decades ahead. As they look to the future, their long-term vision draws on this legacy of collaboration, resilience and innovation.
As the GCC luxury market continues to outperform global trends, Michael explains that this growth is not a one-off and that there has been a steady evolution over recent years. In 2024, the Middle East market reached US12.8bn in retail sales, a more than six per cent year-on-year growth, according to their “GCC Personal Luxury 2024: Unstoppable report”.
This resilience is underpinned by robust local spending, strong tourism and new retail developments, especially in Saudi Arabia and the UAE. Meanwhile, a new generation of luxury brands are entering the region, while categories such as skincare, wellness and athleisure are expanding rapidly. Finally, e-commerce is accelerating, capturing 13 per cent of the market and growing 13 per cent year-on-year, providing a significant opportunity to engage with digital-savvy consumers.
“By leveraging these trends, we ensure Chalhoub Group remains responsive to evolving customer behaviours, combining market intelligence with operational ability and culturally relevant experiences,” says Michael.
Today, luxury is about experiences, storytelling and meaningful connections. Chalhoub Group feel that the greatest opportunity lies in delivering seamless, omni-channel journeys that merge physical and digital touchpoints, ensuring every interaction is authentic and culturally relevant.
Michael comments that creating immersive, memorable experiences is also a powerful way to foster brand loyalty and build emotional engagement. A key example is Layla AI, their AI Beauty Advisor, launched with FACES in 2025. Layla AI offers hyper-personalised recommendations across skincare, makeup, fragrance and haircare, learning and adapting with every interaction.
It has achieved 2.5x higher conversion rates, over seven minutes longer sessions and 27 more products explored per session, demonstrating the tangible impact of AI on both customer engagement and business performance. The Layla AI was fully developed in-house by their corporate innovation and AI teams, who are always working to power their brands and business to continue to lead across channels.
A mainstay of the luxury conversation, sustainability is at the core of how Chalhoub Group designs the future of retail.
“It is fully embedded in our long-term strategy and operational model and built on the three strategic pillars of people, planet and partners. This approach ensures that responsible practices are not exceptional initiatives, but an integral part of who we are and how we grow,” Michael comments.
On the planet side, they are reshaping the retail experience to minimise environmental impact and maximise value creation for their brands, partners and customers. This includes investing in energy-efficient stores, low-impact materials, sustainable packaging solutions and transparent value chains supported by strong governance. Their Responsible Retail Framework ensures that every touchpoint, from sourcing to store operations, is aligned with their ESG priorities.
“We are also active members of “Unity For Change – UFQ”, a pioneering sustainability consortium with LVMH, Emaar, Majid Al Futtaim and Aldar, dedicated to driving progress on energy efficiency, clean energy sourcing, eco-design and water and waste management across the UAE retail sector.”
Circularity is another fundamental part of Chalhoub Group’s innovation agenda. They are expanding re-commerce, repair, rental and resale models and collaborating closely with brands to extend product lifecycles through initiatives such as “Second Life” services and pre-loved luxury platforms. An example of this is at Level Shoes, where their pre-loved initiative is enabling customers to give products a second life while elevating the circular luxury experience.
Throughout its history, people have remained the Group’s greatest asset and developing future leaders is central to the next phase of their growth. Through Chalhoub University, they provide a comprehensive learning ecosystem that supports all 16,000 of its team members offering training across customer experience, languages, AI, digital capabilities and leadership academies.
“We also prioritise retention and well-being through inclusive policies, flexible work arrangements and family-friendly benefits, ensuring that our teams feel supported and empowered throughout their journey with us. By embedding talent development into both our business and sustainability strategies, we are nurturing a new generation of leaders who will carry forward our values, culture and vision,” explains Michael.
Chalhoub Group has become a champion of regional talent through initiatives such as The Greenhouse and related innovation programmes. The Greenhouse is their innovation and creative entrepreneurship hub, designed as an incubator and accelerator for start-ups, emerging fashion and beauty brands and retail-tech solutions. Through programmes such as Fashion Lab, Beauty Lab, the Retail-Tech Accelerator and the Startup Studio, they offer entrepreneurs mentorship, retail expertise and access to their ecosystem.
“Innovation is not just technological advancement, it is a mind-set. It means staying curious, experimenting and collaborating so we can anticipate consumer needs, elevate customer experiences and support our partners. This culture of innovation enables us to evolve with the market and build a more resilient, sustainable future for luxury in the region.”
Michael Chalhoub’s perspective reflects a forward-thinking approach grounded in purpose, innovation and a deep understanding of the region’s evolving luxury landscape. As Chalhoub Group expands its influence both within the GCC and internationally, its focus on experience, talent and long-term value positions the business as a defining force in the next era of luxury retail.
Michael Chalhoub is the keynote speaker at the Shoptalk Luxe event, taking place at the Emirates Palace in Abu Dhabi, UAE across the 27-29 January.
