Lulu International Group to open six hypermarkets in Malaysia

UAE-based chain is the biggest operator of hypermarkets chain in the region with an annual turnover of more than USD 5 billion

The UAE-based hypermarket chain and retail venture Lulu International Group has announced it will open six hypermarkets in Malaysia.

The hypermarkets will be operated under a joint venture with the country's Federal Land Development Authority (FELDA).

"We are delighted and encouraged by the support we have been receiving from the Malaysian government for our Malaysian launch. We are very positive about the Malaysian market and are sure to give the shoppers in Malaysia the very best of international shopping and convenience," said Ashraf Ali, Executive Director of Lulu Group.

Malaysia's Deputy Prime Minister Tan Sri Muhyiddin Yassin, who helped strike the deal with Group's founder Yusuff Ali, said Lulu Group would open its first hypermarket in Kuala Lumpur this year before unveiling another five at different locations in the next few years.

"It is indeed a good opportunity for us as Lulu International is the biggest operator of hypermarkets chain in the region with an annual turnover of more than$ 5 billion," Yassin said.

"They will also help market more Malaysian products at their hypermarkets, including those produced by our small-and medium-sized industries and FELDA," he said visiting a Lulu hypermarket in Dubai on Saturday.

He said the group had also agreed to sign contract farming deals with local farmers and entrepreneurs to help supply fresh vegetables and fruits to their hypermarkets.

"They are interested to buy in bulk highlands vegetables and we may promote the produce from Cameron Highlands (Pahang) and Kundasang (Sabah)," he said.

Malaysia's Federal Agricultural Marketing Authority (FAMA) would help identify and promote local fruits and vegetables while Malaysia Airlines would be will provide services to transport the perishable items to the Middle East.

"FAMA will also open more collection centres to help buy fruits and vegetables from our farmers and smallholders," he said.

Asked whether the opening of the new hypermarkets would affect the existing retail and wholesale industries, Yassin said the government had always promoted healthy competition as this would eventually benefit the people with better choices at reasonable prices.