Mubasher: Global retail conglomerate GMG expanded its 12-year partnership with VF Corporation to foster the presence of VF's brands in the region, according to a press release.
The joint agreement aims to grow the network of new mono-brand partner stores across the MENA and Southeast Asia (SEA) markets over the next five years.
GMG currently operates 90 VF's mono-brand stores in MENA and SEA, with plans to launch more than 300 stores during the coming five years.
In the MENA region, VF's renowned brands, including Vans, The North Face, and Timberland, will mainly target the UAE and Saudi Arabia.
VF's brands will also scale up their business in North Africa, strategically focusing on Egypt to reinforce the brands' presence in this market.
Mohammad Baker, Deputy Chairman and CEO of GMG, commented: "Aligned with our shared vision, commitment to exceptional consumer experiences, and the empowerment of active lifestyles, we anticipate continued achievements on this transformative journey together."
Meanwhile, the global retail market stood at $28.30 billion in 2023 and is expected to grow to $37.70 billion by 2027.
The MENA region is witnessing solid growth due to the increasing population, strong spending power, and a stronger affinity to high-quality international brands.
On the other hand, the retail industry in SEA is poised to enter a new phase of growth, backed by the rise in disposable income, developing infrastructure, and favorable business environments.
Baker added: "Looking ahead, our projections align with the remarkable growth potential of the SEA market, propelled by an expanding labor force, rising household incomes, and an expanding consumer base.”
“As a result, athletic wear has risen in popularity, turning the region into a sports goods retail powerhouse with significant opportunities for businesses seeking to capitalize on its potential,” he noted.
Martino Scabbia Guerrini, EPresident of Emerging Brands at VF Corporation, said: "The enhanced partnership will contribute to driving our brand’s regional marketplace strategies, deliver innovative solutions that elevate our go-to-market approach, and strengthen our presence in the region, allowing us to better serve local consumers' needs.”
