Riyadh, Saudi Arabia – May 16, 2025: Lulu Retail, one of the Gulf region’s leading hypermarket chains, opened 2025 with a steady surge in both sales and profits, fueled by an ambitious store expansion campaign and robust demand across key product lines during the Ramadan season.

The company reported a 7.3% year-on-year increase in revenue for the first quarter, reaching $2.1 billion, while net profit climbed 15.8% to $69.7 million. Gains were underpinned by growth in both its traditional retail and e-commerce operations, with digital sales alone jumping 25.3% to $93.4 million and now accounting for nearly 5% of total retail revenue.

"We expect our growth momentum to continue as we remain focused on several initiatives, including expanding our existing store network, launching new stores, enhancing operational efficiencies, and unlocking further potential through our private label and e-commerce offerings," said Saifee Rupawala, CEO of Lulu Retail, in an official press release.

The retailer also saw continued traction in its private label offerings, which rose 9.5% year-on-year and now represent close to a third of total retail revenue. The company's “Happiness” loyalty program also saw membership swell to approximately 6.3 million, with loyalty-linked purchases contributing to 65% of sales during the quarter.

Category-wise, fresh food sales saw a 7.9% boost, aided by festive season demand and rising consumer consumption. Electrical goods led the pack with a 29% increase, thanks to higher sales of premium items. Lifestyle products and consumer packaged goods recorded more modest growth at 6.9% and 1.4%, respectively, with the latter impacted by aggressive promotional pricing.

Regionally, Lulu continued to perform well across its core markets. The UAE, its largest, delivered a 5.2% revenue increase, led by a striking 15.6% surge in the fresh food segment. E-commerce in the Emirates also surged 40.1%, bolstered by strong sales through aggregator platforms. Saudi Arabia, meanwhile, posted double-digit growth of 10.3%, powered by new store openings and healthy same-store sales. Other Gulf markets also saw gains: Oman climbed 7.8%, Qatar rose 6.7%, and Kuwait advanced 4.8%.

Profitability remained healthy, even as margins softened slightly. Gross profit rose 4% to $464.5 million, though gross margin edged down to 22.3%, largely due to promotional activity aimed at boosting store traffic. EBITDA stood at $214.1 million, a 6.4% rise year-on-year, with the EBITDA margin holding steady at 10.3%. Net profit margin improved by 25 basis points, buoyed by stronger operating leverage and reduced interest costs.

Lulu also made headway in reducing its debt burden. Net debt fell to $2.3 billion, with leverage (excluding leases) declining from 1.3x to 0.9x quarter-on-quarter—a sign of tightening financial discipline amid growth.

In terms of footprint, the group added over 22,000 square meters of retail space in Q1, bringing its total to 1.34 million square meters. The company remains committed to its 20-store rollout this year, with upcoming openings spread across existing and new markets.

Further anchoring its community engagement efforts, Lulu signed a memorandum of understanding with Awqaf Dubai to develop retail spaces as part of Dubai’s endowment projects, signaling a deepening of its role in socially responsible commerce.

Taken together, the quarter’s performance reflects a retailer not just holding its ground in a competitive market, but expanding with intent both digitally and physically, all while maintaining profitability and a clear focus on long-term growth.