GMG and VF Corporation strengthen their collaboration to increase presence in MENA and SEA

Global retail giant GMG has unveiled an ambitious expansion plan in collaboration with VF Corporation (NYSE: VFC), a leading global player in lifestyle apparel, footwear, and accessories. Marking a significant milestone in their 12-year partnership, GMG is set to amplify the reach of VF's iconic brands across the Middle East and North Africa (MENA) and Southeast Asia (SEA) regions. Through a distributorship and retail development agreement, GMG aims to establish a plethora of new mono-brand partner stores over the next five years, extending VF's brand experience to a wider consumer base. Presently, GMG oversees 90 VF mono-brand stores in MENA and SEA. However, the company envisions a remarkable expansion, with plans to launch over 300 stores within the next half-decade. This expansion drive will introduce VF's diverse portfolio of brands to key markets in Southeast Asia, bolstering mono-brand store presence while simultaneously enhancing the E-commerce footprint for select VF labels.

In the MENA region, VF's esteemed brands like Vans®, The North Face®, and Timberland® are poised for an extensive mono-brand footprint expansion, with a strategic focus on the United Arab Emirates (UAE) and the Kingdom of Saudi Arabia (KSA). Additionally, VF's brands are set to make significant inroads into North Africa, particularly targeting Egypt to solidify their presence in the region. Notably, this agreement marks the inaugural entry of VF's The North Face® brand into the North African market.

Mohammad A. Baker, Deputy Chairman and CEO of GMG, said: "Continuing our strategic expansion and adding new markets across SEA signifies a pivotal chapter in our successful long-standing partnership with VF Corporation. Aligned with our shared vision, commitment to exceptional consumer experiences, and the empowerment of active lifestyles, we anticipate continued achievements on this transformative journey together."

The global retail landscape, valued at $28.3 billion in 2023, is projected to burgeon to $37.7 billion by 2027. The MENA region, characterized by a burgeoning population, robust purchasing power, and a penchant for premium international brands, is experiencing steady growth. Similarly, the SEA retail sector is poised for a transformative growth trajectory, propelled by rising disposable incomes, infrastructural development, conducive business environments, and a surge in tourism.

Baker added: "Looking ahead, our projections align with the remarkable growth potential of the SEA market, propelled by an expanding labour force, rising household incomes, and an expanding consumer base. Further, consumers' increased focus on their health has prompted many individuals to put effort into leading healthier lives. As a result, athletic wear has risen in popularity, turning the region into a sports goods retail powerhouse with significant opportunities for businesses seeking to capitalize on its potential. With our history of innovation and customer-centricity, we look forward to setting new industry standards and pushing the boundaries.”

Martino Scabbia Guerrini, Executive Vice President, Global Chief Commercial Officer, and President of Emerging Brands at VF Corporation, said: "We are excited to enhance our long-term partnership with GMG, leveraging our combined strengths to unlock accelerated international growth opportunities for VF's brands in the MENA and SEA regions. The enhanced partnership will contribute to driving our brand’s regional marketplace strategies, deliver innovative solutions that elevate our go-to-market approach, and strengthen our presence in the region, allowing us to better serve local consumers' needs”.

GMG's Sports division boasts a diverse portfolio encompassing renowned international brands and indigenous concepts such as Sun & Sand Sports, Dropkick, Nu Athlete, Pedaliere, and Basketbolista. The partnership between GMG and VF Corporation commenced in 2012 with the introduction of the Timberland® brand in the Gulf Cooperation Council (GCC) countries. Over the years, this collaboration has expanded to include Vans®, The North Face®, and Timberland® outlets in the UAE, KSA, and Southeast Asia, currently comprising approximately 90 mono-brand stores.