GMG And VF Corporation To Open 300 New Stores In MENA And SEA

GMG, a renowned global retail conglomerate, has announced its plans to further its partnership with VF Corporation (NYSE: VFC), a leading entity in the lifestyle apparel, footwear, and accessories domain. This expansion aims to deepen VF's brand footprint across the Middle East and North Africa (MENA) and Southeast Asia (SEA) regions. Leveraging a relationship spanning over 12 years, the new distributorship and retail development agreement is set to introduce over 300 new mono-brand partner stores within the next five years. This initiative not only broadens VF's brand experience for consumers but also signifies a strategic move in enhancing the company's global presence.

Currently, GMG is managing 90 VF brand-specific stores in both MENA and SEA regions. The expansion plan includes launching VF brands in strategic Southeast Asian markets through mono-brand stores and enhancing e-commerce operations for select brands. Particularly in the MENA region, well-established VF brands such as Vans®, The North Face®, and Timberland® are set to increase their mono-brand store presence, with a focus on the United Arab Emirates (UAE) and Kingdom of Saudi Arabia (KSA). Additionally, this expansion will mark The North Face® brand's debut in the North African market, concentrating on Egypt to bolster brand visibility.

Mohammad A. Baker, Deputy Chairman and CEO of GMG, expressed enthusiasm about the extension, highlighting its role in continuing the conglomerate's strategic expansion and entering new markets across SEA. Baker emphasized the alignment of this venture with the shared vision of delivering superior consumer experiences and fostering active lifestyles, anticipating further successes in this collaborative journey.

The global retail sector, valued at $28.3 billion in 2023, is projected to soar to $37.7 billion by 2027. The MENA region is showing promising growth, attributed to its burgeoning population, strong spending capabilities, and inclination towards high-quality international brands. Conversely, the SEA retail industry is on the brink of substantial growth, driven by increasing disposable incomes, infrastructural developments, conducive business climates, and a surge in tourism.

Baker further shared insights on the SEA market's growth potential, fueled by an expanding workforce, rising household incomes, and a growing consumer base. The increased focus on health and wellness has spiked the popularity of athletic wear, positioning the region as a lucrative market for sports goods retail. Baker expressed GMG's anticipation to introduce new industry standards and explore this burgeoning opportunity.

Strengthening Partnerships

Martino Scabbia Guerrini, Executive Vice President, Global Chief Commercial Officer, and President of Emerging Brands at VF Corporation, also commented on the partnership expansion. Guerrini looks forward to leveraging the combined strengths of both corporations to accelerate international growth opportunities for VF's brands in the MENA and SEA regions. This enhanced collaboration aims to refine the brands' regional market strategies, innovate go-to-market approaches, and fortify their presence to better meet local consumer demands.

GMG's Sports division showcases a diverse portfolio that includes both international and home-grown brands such as Sun & Sand Sports, Dropkick, Nu Athlete, Pedaliere, and Basketbolista. The partnership between GMG and VF Corporation began in 2012, focusing initially on the Timberland® brand in Gulf Cooperation Council (GCC) countries. Over the years, it has expanded to include other prominent brands like Vans®, The North Face®, and Timberland® across the UAE, KSA, and South East Asia, now encompassing around 90 mono-brand stores.