WITH 23 STORES NOW IN UAE, SHARAF DG PLOTS EXPANSION TO SAUDI ARABIA
The latest store at Ibn Battuta Mall is significant because it was at this mall where it all started for Sharaf DG in 2005.
Tech retailer Sharaf DG has expanded its presence in the UAE by launching a new store in Dubai’s Ibn Battuta Mall. Marking its 23rd outlet in the UAE, the new 1,400-square-metre store holds special significance as Ibn Battuta Mall was where SharafDG first began its journey in 2005, according to Major General Sharafuddin Sharaf, vice-chairman of Sharaf Group.
“This is our third store in Ibn Battuta Mall, where we began our retail journey. It is important for us to be in Ibn Battuta because it is one of the prime locations in Dubai in terms of demand,” said Sharaf. Located in Jebel Ali Village, the mall is near several residential communities. “A lot of newcomers to Dubai also choose this locality as their residential area of choice,” he added.
However, the retailer will close the other two stores at the mall in the coming months. “We plan to keep the stores until the end of the Dubai Shopping Festival,” said Nilesh Khalkho, founder member and CEO at Sharaf DG. Sharaf DG is now present in the UAE, Oman, Bahrain, and Egypt and plans to expand to Saudi Arabia by January next year.
“We plan to go live in Riyadh in January 2025. Two more stores will hopefully follow this in Jeddah,” said Khalkho.
Brick-and-mortar to stay
The push for brick-andmortar presence remains extremely important for the retail group. “About 13 per cent of our business comes from online retail. The rest is from our brickand-mortar stores. Customers in this region want to touch and feel a product before they buy it,” said Sharaf.
Khalko also believes that while the customer journey starts online, it is completed in a brick-and-mortar store. He explained, “Research has shown that the online journey is where everything starts — no doubt about that. Companies that analyse consumer behaviour online — tracking how consumers interact, and tracing their clicks — can then understand what attracts attention. For example, a product receiving many clicks suggests consumer interest. Brands are using this data to attribute and understand consumer behaviour.”
Khalko said the company uses FMCG data to analyse catchment areas, consumption patterns, localities, etc when selecting localities to open new stores.
Location strategy
Commenting on the location strategy adopted by the company for opening new stores, Khalko said, “Think about how Dubai has expanded. It used to be just Deira and Bur Dubai. I’ve personally walked through areas that were just sand back in 2005. At the time, everyone was questioning what we were doing there, because there was nothing — Dubai Marina was just starting to come up, and Al Barsha didn’t even exist.”
SHARAF DG OPENS NEW OUTLET IN DUBAI’S IBN BATTUTA MALL
He added, “It’s a similar situation now. Even Ibn Battuta, which many thought was on the outskirts, is becoming more central as development continues in that direction. Dubai can’t expand westward anymore, so it’s growing in the other direction. Al Maktoum Airport and new projects are pushing Dubai’s boundaries even further. It’s all part of Dubai’s continuous expansion.”
“It is important for us to be in Ibn Battuta because it is one of the prime locations in Dubai in terms of demand.”- Maj Gen Sharafuddin Sharaf | Vice chairman of Sharaf Group
“We plan to go live in Riyadh in January 2025. Two more stores will hopefully follow this in Jeddah.” – Nilesh Khalkho | Founder member and CEO at Sharaf DG