Majid Al Futtaim

A Springboard to Success

Home to world-class fashion and retail brands with more than 65 stores across the MENA region, Majid Al Futtaim Lifestyle is the international retail partner of choice for some of the globe’s most desirable brands. Here, RLI speaks with CEO Fahed Ghanim about the evolution of the company and how it will continue to achieve the right brand positioning and retail execution for its portfolio of brands.

Majid Al Futtaim Lifestyle was established in 2003 and in the two decades since it has become a springboard into the region for the some of the world’s largest retail brands.

Today they are the retail partner of choice for some of the most iconic and disruptive brands including Abercrombie & Fitch, All Saints, CB2, Ceccotti Collezioni, Crate & Barrel, Hollister, LEGO, lululemon, Poltrona Frau, Shiseido and THAT Concept Store, their own multi-brand homegrown store and app.

“Five years ago the business embarked on a significant transformation journey, which led to the business quadrupling in size and expanding our digital capabilities, merging the physical and digital realms of retail,” explains Fahed Ghanim, CEO of Majid Al Futtaim Lifestyle. “In 2022 we increased our online presence to 18 platforms and strengthened our advance analytics team to support our network of 67 stores across the region to deliver a seamless, unique and personalised journey for our customers.”

Most notably, THAT Concept Store, in Dubai’s Mall of the Emirates, continues to raise the bar since becoming the first complete lifestyle concept store in the region. Featuring the latest curated fashion, art, beauty and grooming experiences offered by contemporary luxury brands, THAT is an award-winning and distinctive concept offering customers an individualised journey across an immersive in-store space, website and app and includes a collection of international and regional brands from established and emerging designers.

In the past year, the company has ventured into two new categories for the first time. Firstly, they have expanded into the luxury home category with Poltrona Frau, the iconic Italian furniture brand with a century-long legacy, renowned globally for its pioneering work in leather interiors. This partnership supports Majid Al Futtaim Lifestyle’s geographical and brand expansion strategy at a time of recording year-on-year double-digit growth.
They have also entered into the beauty category for the first time and opened the only store outside the Asia region for the 150-year old Japanese revolutionary beauty leader, Shiseido. The flagship store opening at Dubai’s Mall of the Emirates followed a successful six-month e-commerce partnership with Shiseido which saw a 38 per cent monthly average growth since its launch.

“These partnerships underline the confidence global brands have in Majid Al Futtaim Lifestyle and the potential of this market, showcasing the robustness of our ecosystem in fostering the growth of leading international brands,” highlights Ghanim. “We meticulously select brands that seamlessly align with our vision and commitment to delivering exceptional experiences to customers in the region. The selection process reflects a profound understanding of customer preferences and a dedication to meeting their evolving needs.”

As he looks to the future, the CEO highlights that the company has an ambitious development pipeline which focuses on strategic growth and enhancing its existing pillars across fashion, home, beauty, specialty retail and their multi-brand concept. He continues by saying that their approach includes both maintaining and expanding its core offerings while strategically extending the brands’ geographical reach across the region.
“We continually explore avenues for extending our reach and at present our focus is on enhancing our existing portfolio and expanding our stores within our established markets across the GCC. However, Egypt remains a significant consideration due to its sizable population and potential for growth.”

The current and future retail industry is all about brand experience, so when the topic of discussion turns to this and how Majid Al Futtaim Lifestyle engage with customers, Ghanim highlights that personalisation, powered by data analytics and AI, has become a powerful tool to deliver relevant product recommendations, personalised marketing messages and customised experiences to build brand affection and keep customers coming back. THAT Concept Store was developed following a deep analysis of customer needs and determining a gap in the market and they continue to listen and adapt to ensure they are providing an exceptional customer experience that keeps customers coming back. Their home stores, including Crate and Barrel and CB2 feature multiple services that enhance the shopping experience for their customers and elevate the experiential element of their brands, including their in-house design studio services, gift registry options and in-store café.

Sustainability and social responsibility sits at the heart of everything the company does. They believe in thinking holistically about the impact their business has on the environment, the communities in which they operate and they recognise the importance of integrating sustainable practices into their operations.

“We continually strive to become one of the most sustainable companies in the world. As a group, Majid Al Futtaim’s long-term target is to produce more energy and water than we consume, reaching a Net Positive business model by 2040,” Ghanim explains.

When discussing the key drivers behind the success the company has seen in the last 20 years, he comments that nothing is more important than recognising the value of individuals and their contributions, while also prioritising the acquisition of suitable talent and capabilities to effectively execute their strategy and enhance the customer experience. He continues by saying that their people lie at the core of the organisation’s success and he strongly believes in cultivating a culture of empowerment and creating an environment where their teams are able to thrive.

“We have an exciting journey ahead of us, but we also recognise the challenges that come with navigating an ever-evolving retail landscape. One key aspect we are attentive to is the evolving landscape of customer needs and preferences. As trends shift and consumer behaviours change, our commitment to staying attuned to these changes and remaining agile becomes paramount,” highlights Ghanim.

“Our ability to evolve with the times, retain exceptional talent and remain ahead of market trends is pivotal to our vision for the future and our aspiration to deliver unparalleled experiences to our customers.”