GMG Achieves Transformative Growth & Sustainability Milestones in 2024
UAE-based global wellness conglomerate demonstrates strong performance across business verticals while advancing sustainability and inclusion agenda.
GMG, a leading global conglomerate in well-being and retail, has announced significant milestones for 2024, underscoring its robust expansion and strategic partnerships. A major highlight is the deepening of its 12-year collaboration with VF Corporation (NYSE: VFC), a global leader in branded lifestyle apparel, footwear, and accessories. This enhanced partnership will see the addition of over 300 new VF stores across MENA and Southeast Asia over the next five years, building on GMG's existing 90 VF mono-brand stores in the regions. Furthermore, the partnership will focus on expanding E-commerce operations for select VF brands.
Expanding Market Presence in MENA and Southeast Asia
This strategic growth aligns with the expanding retail market, which is projected to rise from $28.3 billion in 2023 to $37.7 billion by 2027. The MENA region remains an attractive hub for retail investment due to its growing population, strong spending power, and deep affinity for international brands. Similarly, Southeast Asia's retail sector is poised for a new phase of growth, driven by rising disposable incomes, improved infrastructure, favourable business conditions, and a surge in tourism.
Mohammad A. Baker, Deputy Chairman and CEO of GMG, said: “In 2024, we focused on strategic expansion and sustainable operations. Our new partnerships and product launches have strengthened our market position, while our sustainability initiatives demonstrate our commitment to responsible business practices.”
Evolving Partnership with Nike
GMG’s long-standing partnership with Nike, which began in 1982, continues to evolve in response to the increasing demand for digital shopping experiences. In 2024, GMG launched Nike.ae and Nike.sa, as well as the brand's first mobile app in the region, enhancing convenience for customers. GMG also expanded Nike’s online presence by launching e-commerce platforms in Kuwait and Qatar, further extending the brand’s reach to a wider audience in the region.
Strengthening Regional Presence
In the Middle East and Africa, GMG has bolstered its presence in Saudi Arabia through a partnership with JD Sports, celebrating the opening of its first store at Riyadh Park Mall. Additionally, GMG’s operations in Egypt are thriving, with 26 stores across its retail portfolio and plans to expand to 100 stores by 2026, supported by key local partnerships.
Innovations in Everyday Goods
GMG’s Everyday Goods division reached new heights in 2024, unveiling innovative products at prestigious trade events such as GULFOOD and SIAL Paris. At SIAL, GMG made its European debut with Shnax, a healthy snack made from 100% chicken, which earned an "Innovative Product" award nomination. The company also showcased a broader portfolio of brands, including La Invitada, AL SERR, Farm Fresh, Sapora, RUH, and Klassic, introducing these products to international markets.
Launch of GMG Home
Capping off a year of growth, GMG introduced GMG Home, adding a new dimension to its retail portfolio. This division merges Suncoast’s premium outdoor furniture with Monoprix Maison’s curated indoor collections, providing customers with practical luxury for both indoor and outdoor living spaces.
Transformation of Health and Beauty Division
GMG’s Health and Beauty division saw a significant transformation with the rebranding of Supercare Pharmacy. Moving beyond the traditional pharmacy model, Supercare was repositioned as an "Ultimate Wellness Destination," offering an expanded range of products and services that focus on holistic well-being.
Advancing Sustainability and Community Impact
In 2024, GMG launched its comprehensive CSR platform, ‘GMG Cares,’ which focuses on three pillars: Planet, Community, and People. The platform made an immediate impact through community initiatives, including the distribution of over AED 70,000 worth of food staples to families in need and the provision of 2,320 meals during Ramadan across the UAE, KSA, and Malaysia.
Sustainability Milestones
GMG achieved significant sustainability milestones this year, including a shift to 89% green energy usage in its logistics operations between 2022 and 2023, reducing its carbon footprint by over 2,000 tons of CO2. Other environmental initiatives included eliminating nearly 295,000 plastic bottles through a water station at Al Qudra cycle track as part of Dubai Can, replacing 35,000 square meters of plastic tape with paper alternatives, and saving over 415,000 plastic bottles through water filter installations in the office.
Empowering Employees and Supporting Diversity
GMG has also made strides in workplace empowerment, introducing a Diversity, Equity & Inclusion (DE&I) committee and launching the "EmpowHer" program to advance women’s career opportunities. The company also established the GMG Sports Club and partnered with Al Noor Special Needs Centre to support employment opportunities for people with special needs.
Advancing Digital Innovation and Customer Experience
In 2024, GMG saw impressive results from its digital initiatives, including the Nike membership program, which generated 75% of revenue from member sales in its first month. Additionally, the company optimized its logistics infrastructure through AI implementation at its 23,070-square-meter mega-warehouse in Riyadh, reducing delivery times to major cities to just 12-24 hours while cutting fleet size by 7%.
“As we close 2024, our achievements across expansion, sustainability, and digital advancements demonstrate GMG's evolution as a global retail leader. By combining strategic market growth with technological advancement and sustainable practices, we've created a foundation that positions us strongly for our next phase of growth. Our focus remains on delivering exceptional experiences to our customers while contributing positively to our communities and the planet,” Baker added.
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