Retail Innovation in the Middle East! !

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RETAIL INNOVATION IN THE MIDDLE EAST! !

SANDEEP SALIGRAM, GENERAL MANAGER - RETAIL PROJECTS

Presentation Overview

The Middle East GCC Review Retail Transformation Focus on Dubai Tipping Point of Retail

Landmark Group Overview

Case Studies – Splash, Max, Home Centre and Oasis Centre

Retail Road Ahead Discussion and Q&A

Middle East Retail Transformation OLD SOUK FORMAT

• The Middle East market is moving from being oil and natural gas-centric to other industries.

• Retail is one of the fastest growing industries in the region.

• Middle East Countries -

• The Middle East is the tenth largest luxury goods market with sales exceeding $7.69bn

DUBAI MALL • Current Retail GLA expected to grow by 20% by 2020 • GDP Growth Rate in the region - 3.6% • Per Capita Income $ 20,232 • However, this view is skewed . The Middle East market is divided in two parts, the developed GCC markets, and the rest of the ME countries where political and economical instability still prevail.

GCC Center of Growth MALL OF THE WORLD"

• Saudi Arabia, United Arab Emirates, Kuwait and Qatar dominate growth and have ambitious plans post recession. MALL OF QATAR"

• 2014 Global Retail Development Index – highlight these 4 countries amongst the top 30.

• Bahrain and Oman also continue to grow steadily

• GCC Retail GLA area to grow by 40% • Key Infrastructure projects by 2020. Qatar Airport New Metro Systems in all GCC countries • Infrastructure spends by GCC wide rail network governments in the GCC has increased by 80%

Dubai - The Tipping Point

• Dubai Retail Sales to grow at an estimated $41 Billion by 2015

• Mall of the World – 8 Million Sq. Ft.

• Dubai Tourism Figures – More than 11 million visitors in 2013

• Half – yearly figures for 2014 already show a 11% increase

• Half – yearly hotel and hotel apartment operator revenue raised by 18.6 %

• Dubai Current Retail Space - 86 Million Sq. Ft.

Dubai Calendar

•Dubai Government to leverage retail and events sectors as key drivers of tourism growth

•Dubai Summer Surprises 2014 generated 400 million in a mere 2 weeks

•Growing visitors from across the Middle East visiting Dubai

•Dubai Shopping Festival – More than 70 Malls Participating, 6,000 retail outlets offered promotions. The festival attracted over 4 Million Visitors who spent USD 3 Billion

Dubai Calendar

Company Profile

Landmark Group Strengths

• Landmark Group was established in 1973 with our first store in Bahrain - Mothercare

• Led by the Group’s visionary Chairperson – Micky Jagtiani and Vice – Chairperson – Renuka Jagtiani

• In 1992 the Group shifted its Headquarters to Dubai, UAE

• Core belief – Build large format stores, to offer variety of choice in merchandise at exceptional prices

• Statement of purpose – Creating exceptional value for all lives we touch.

Landmark Group Strengths

• Today the Landmark Group is the leading Retail and Hospitality Conglomerate in Middle East, North Africa and India

• 40 years of retail experience

• Operates over 25 own brands and 40 international franchise brands

• Large and diversified retail formats with anchor stores in major malls

• Formidable and extensive customer loyalty program with over 9.5 million members

• Over 50,000 Employees

Our Presence

1800 Stores

20 Countries

23 Mln. Sq. Ft. Retail Area

9 Mln. Customers Yearly

SRI LANKA

Property Portfolio The Group has a strong property and real estate portfolio with presence in key malls and locations across the countries it operates in. Muscat City Centre, Mall of the Emirates, Mirdif City Centre, Oman Dubai Dubai

Total GLA= 651,050 Total GLA2 ,513,038 Sq. Total GLA2 ,109,744 Sq. Landmark Group = = Landmark Ft. Group = Landmark Ft. Group Sq. Ft. Area 28 %180,000 Sq. Area = 172,0007 % Sq. Ft. Area = Ft. 352,270 Sq. 17% Avenues Mall, Dubai Mall, Riyadh Gallery , Saudi Kuwait Dubai Arabia

Total GLA = 2,815,860 Total GLA = Total GLA = 117,826 Landmark Group Area = 185,000 Sq. Ft. Landmark3,770,026 Group Sq. AreaFt. = Landmark Sq. Ft. Group Area = Sq. Ft.7 % 125,000 Sq.3 Ft. 22,800 Sq. Ft.19 % %

Customer Loyalty Programs

It is the biggest, most successful retail customer loyalty program in the Middle East. RE- MEMBERS BRANDS LAUNCHED 2010 4.5M 45

An exclusive customer loyalty program offered by the LAUNCHED MEMBERS BRANDS

Landmark Group in India.

million

OWN BRANDS PORTFOLIO

2001 5M 11

FRANCHISE BRANDS

Fashion Brands

Sports and Electronic Brands

Home Brands

LandmarkShops.com offers customers a better online shopping experience. Starting in the UAE with Babyshop, Splash and Emax, LandmarkShops.com will continue to progressively expand to include all of the Group’s concepts, markets, 2012 and more.

ESTABLISHED

BRANDS COUNTRIES

3 1

Leisure, Wellness & Hotels

Own Franchise Joint Venture

Food Beverage&

FEC & Confectionary Brands

Health and Well Being Brands

Hotel and Food Brands

Case - Studies

Splash

Key Facts

COUNTRIES RETAIL SPACE

ESTABLISHED STORES

1993 263

A young, high street fashion brand offering the latest trends in apparel 2.4 and accessories for men, women and . . Million sq. 14 . teens. =Million sq. = * sq. =. Million sq. = Includes details for Splash brands stores

Brand Transformation Splash First Store 1993

Splash Current Format Splash 2004 Splash Current Format

Splash Current Format

Max

Key Facts

ESTABLISHED 2004 266 STORES The largest value fashion brand

in the

Middle East, retailing apparel for men, COUNTRIES RETAIL SPACE women and children along with

footwear, accessories, cosmetics and . 16 4.9 Million sq. household products. =

Brand Transformation

CHALLANGES

• Lack of Fashion inspiration and freshness

• Stores lacked personality or identity

• Presentation is too unified and rigid

• Department and Categories needed to reflect merchandise

• One size fits solutions store lacked inspiration and focus

• Store lacked visual focal points to help in presentations and way finding

• Key anchor areas needed to be established to highlight fashions and collections DIRECTION FORWARD

MAX IS NOT A SEA OF CLOTHING RACKS BUT RATHER A COLLECTION OF FASHION POSSIBILITIES

Provide opportunities for inspiration, freshness and fashion

Create hierarchy of organization, messaging and merchandising

Provide clear and intuitive customer shopping experience

Create a system of presentation that has both impact and style

Inspiration for personal expression across every corner

Maintain brand position of fashion, great value and service

DESIGN ATTRIBUTES Exciting Clear Visual Flexible

Fashionable Simple Collections Current

Inviting Clean Highlight Changing

Inspiring Balanced Surprise Stylish DEFINING ELEMENTS

Exciting | Clear | Highlight | Stylish

Design Direction

Creating Environments that excite and express a keen sense of fashion and yet be accessible Inspire

The Entry

Announce Bold Visual Anchors Explore

Clear Circulation Engage

Exciting Merchandise Displays

Max New Format – The Entry

Max New Format – Department Design

Max New Format – Visual Merchandising

Home Centre

Key Facts

ESTABLISHED STORES

1995 70

A leading retailer of RETAIL furniture and home COUNTRIES 3.3 SPACE Million sq. =. furnishings in the Middle East, 10 offering outstanding value and an exceptional customer experience by consistently fulfilling the key brand promise of ‘Find Your Home in Ours’.

Brand Transformation

DIRECTION FORWARD

DESIGN ATTRIBUTES

DEFINING ATTRIBUTES Home Centre New Format

Home Centre New Format

Home Centre New Format – Interiors

Oasis Centre

Oasis Center – First Format

Oasis Centre – Redesign - 1

Oasis Centre – Redesign - 2

Retail Road Ahead

Thank You