GMG, a global retail conglomerate, today announced significant achievements in its Saudi Arabian operations throughout 2024, marking another year of strategic expansion and digital transformation in the Kingdom. The company’s growth strategy aligns with emerging consumer trends showing increased demand for premium retail experiences and digital engagement.
Following the successful launch of its 23,070-square-meter mega-warehouse in Riyadh, GMG has continued to strengthen its footprint in Saudi Arabia. GMG Sports’ main distribution centre, Kaden Logistics Park, uses advanced conveyor belts and new order-picking technology that uses lights to help workers pick the right items faster. This advanced system helps manage stock quickly. There is also a second delivery centre in Jeddah that helps send goods to stores in western areas like Yanbu, Taif, Mecca, and Medina.
Most notably, the company successfully introduced JD Sports to the Saudi market, with its first store opening at Riyadh Park Mall in September 2024, followed by another store in Red Sea Mall in October 2024, with plans to open in Al Nakheel Mall, Riyadh soon. This strategic launch addresses the Kingdom’s growing demand for premium sportswear and lifestyle products, capitalising on market research showing that 71% of consumers are willing to invest more in quality products that deliver lasting value. This opening is part of a broader 10-year agreement that will see GMG opening around 50 JD-branded stores across the UAE, Saudi Arabia, Kuwait, and Egypt by 2028.
Imad El Ghazal, Senior Vice President – Geographies & Marketplace at GMG, said, “2024 has been a transformative year for GMG in Saudi Arabia, as we’ve successfully executed our expansion strategy while enhancing our digital capabilities to meet evolving consumer needs. The launch of JD Sports in the Kingdom, supported by our expanded warehouse infrastructure, represents a significant step in our mission to bring world-class retail experiences to Saudi consumers, aligning with Vision 2030’s goals for a vibrant retail sector.”
Building on its established presence through its over 110 stores across the Kingdom, GMG has made substantial investments in its digital infrastructure this year, including integrating Tabby and Tamara platforms to enhance consumer reach. The company’s omni system runs 24/7, processing customer orders within 4 hours, with orders ready for handover in 6-8 hours. This digital transformation initiative aligns with Saudi retail market projections, which indicate growth from SAR 581.3 billion in 2022 to an estimated SAR 676 billion by 2027, with e-commerce expected to reach USD 21 billion by 2025.
Looking ahead to 2025, GMG plans to expand its presence across key urban centres, including Riyadh, Jeddah, Dhahran, Al-Khobar, and Dammam, while exploring opportunities in emerging cities like Abha, Jizan, and Tabuk. The company aims to double its workforce in Saudi Arabia by 2025 and continues introducing new concepts, including JD Sports, New Era, and Columbia, to new locations. Additionally, GMG will expand VF Corporation’s brands in the region through new mono-brand partner stores, building on their 12-year partnership that currently includes approximately 90 stores.
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