Riyadh’s Magrabi Retail Group Achieves Double-Digit Growth in 2023
In a rapidly evolving market landscape, one of the region’s leading optical retail chains, Magrabi Retail Group, reported a remarkable double-digit growth in 2023. The company witnessed a 15 percent surge in total sales compared to the previous year, and a 30 percent increase in like-for-like sales under its Doctor M banner, surpassing previous expectations.
Expansion and Development Drive Growth
Yasser Taher, the company’s CEO, attributed this growth to the expansion and development of the group’s property portfolio. “We opened new stores for both our luxury banner Magrabi and the lifestyle banner Doctor M, including refurbishments, upgrades, and strategic store relocations,” Taher told Arab News. This strategic expansion not only enhanced the group’s market presence but also contributed to higher average order values and increased foot traffic.
Digital Dominance and Online Sales Growth
In addition to its physical footprint, the group has made significant strides in the digital sphere, experiencing a 225 percent growth in online sales in 2023. This growth can be attributed to its focus on enhancing the online customer experience through various initiatives, including virtual try-on features and swift delivery enhancements such as same-day delivery. Taher highlighted the enhancements made to last-mile delivery services, including the introduction of same-day and express options within 90 minutes in the UAE.
Strategic Investments and Future Expansion
In 2023, the group invested SR115 million ($30.66 million) in new store openings, refurbishments, and transformation projects, laying a foundation for future growth and scalability. Taher stated, “Expanding our network by opening new stores significantly impacts our future top line. We are adding more stores in both banners and continuing to upgrade the Magrabi banner to a luxury one.”
New Leadership and Corporate Governance
Taher, the first non-family CEO of Magrabi Retail Group, discussed the implementation of key improvements to the company’s overall strategy. These changes included the establishment of a new board of directors aimed at elevating corporate governance standards within the organization. The revamped board structure has already shown promising results, with Taher noting the implementation of thorough reporting mechanisms and structured board agendas.
Looking Ahead to 2024
The retail group has outlined a roadmap for 2024 containing strategic priorities and initiatives to build upon the successes of the previous year. “In 2024, our primary focus is on marketing and communications,” Taher affirmed. The group aims to reinforce its position as the leader in luxury eyewear retailing through targeted campaigns and brand positioning strategies.
Gender Equality and Fair Practices
The group has set ground-breaking targets for gender equality and fair practices, including the ambitious goal of 50:50 gender equality throughout, from board to shop floor, by 2025. The company is already making huge strides forward in this regard, with the executive team, senior leadership team, and board already gender-balanced.