GMG And VF Corporation To Launch Over 300 Stores In MENA And SEA

In a significant development for the retail and lifestyle sector, GMG, a leading global retail conglomerate, has announced an expansion of its longstanding partnership with VF Corporation, a renowned global leader in branded lifestyle apparel, footwear, and accessories. This collaboration, which has flourished for over 12 years, is set to further extend VF's brand presence across the Middle East and North Africa (MENA) and Southeast Asia (SEA) through the establishment of new mono-brand partner stores. This ambitious initiative aims to launch over 300 stores within the next five years, significantly broadening VF's consumer base in these regions.

Currently, GMG successfully operates 90 VF mono-brand stores across MENA and SEA. The expansion strategy includes introducing VF's brands to key Southeast Asian markets, opening mono-brand stores, and enhancing the E-commerce business for selected VF brands. In the MENA region, VF's iconic brands, namely Vans, The North Face, and Timberland, will see their mono-brand footprint grow, with a focus on the UAE and Saudi Arabia. Additionally, VF's brands are set to augment their presence in North Africa, with a strategic emphasis on Egypt, marking The North Face brand's debut in the North African market.

Mohammad A. Baker, Deputy Chairman and CEO of GMG, expressed enthusiasm about this strategic expansion, highlighting it as a crucial phase in their successful partnership with VF Corporation. Baker emphasized the shared vision and commitment to providing exceptional consumer experiences and supporting active lifestyles, anticipating further achievements in this transformative journey.

The global retail market, valued at $28.3 billion in 2023, is projected to reach $37.7 billion by 2027. The MENA region, in particular, is witnessing steady growth, attributed to a growing population, strong spending power, and an affinity towards high-quality international brands. Conversely, the SEA retail industry is on the brink of a significant growth phase, driven by rising disposable incomes, developing infrastructure, favorable business environments, and increased tourism.

Baker also noted the remarkable growth potential of the SEA market, driven by an expanding labor force, rising household incomes, and an enlarging consumer base. The increased focus on health has boosted the popularity of athletic wear, positioning the region as a burgeoning retail hub for sports goods with vast opportunities for businesses.

Enhanced Partnership and Future Projections

Martino Scabbia Guerrini, Executive Vice-President, Global Chief Commercial Officer, and President of Emerging Brands at VF Corporation, shared his excitement about enhancing the partnership with GMG. He emphasized leveraging combined strengths to unlock accelerated international growth opportunities for VF's brands in the MENA and SEA regions. This enhanced partnership is poised to drive regional marketplace strategies, deliver innovative solutions, and bolster VF's brand presence.

GMG's Sports division boasts a diverse portfolio, including powerhouse international brands and home-grown concepts such as Sun & Sand Sports, Dropkick, Nu Athlete, Pedaliere, and Basketbolista. The partnership between GMG and VF Corporation initiated in 2012 with Timberland in the Gulf Cooperation Council (GCC) countries has evolved to encompass Vans, The North Face and Timberland in the UAE, KSA, and Southeast Asia, marking a significant milestone in their joint journey.

This strategic expansion signifies a pivotal moment for both GMG and VF Corporation, promising to redefine retail experiences and cater to the evolving needs of consumers across the MENA and SEA regions.