What is Lulu’s Plan Behind Shopping for Products Under 20?
In the competitive retail sector of the Gulf, offering easy access to daily-demand products priced under Dh20 (or SR22) has emerged as a strategic focus for major retailers.
Companies like Lulu are expanding their offerings to attract value-conscious shoppers and compete with online marketplaces.
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Key Developments
- Lulu’s Expansion: Lulu has launched three LOT stores in Saudi Arabia, with plans to open a total of 50 LOT stores by 2025. These stores exclusively carry products priced under SR22.
- Target Revenue: In the UAE, Lulu aims for Dh1 billion in revenue from the LOT concept by 2026 as they expand to 52 stores.
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Strategic Goals
Commitment to Value Retailing
Yussufali M. A., Chairman of Lulu Group, emphasized that this expansion aligns with Saudi Arabia’s Vision 2030, aiming to provide quality and affordable products to all. The goal is to redefine value retailing in the region.
Competing with Online Marketplaces
The introduction of LOT stores is a move to counter the dominance of online marketplaces, especially those offering rapid delivery services for everyday purchases. Retail analysts note that many Gulf shoppers prefer physical stores for low-cost items rather than ordering online..
Store Features
- Size and Accessibility: The new LOT store in Riyadh’s Al Malaz covers 18,772 square feet and includes ample parking, positioning it as a flagship destination for value shopping.
- Convenience: Unlike online vendors, these stores do not impose minimum purchase prices, making them attractive for everyday shopping.
Market Position and Competitors
Lulu’s LOT format competes with established brands like Miniso and Daiso, which are known for offering low-cost products. However, experts believe that LOT stores are not directly competing with small local stores (baqala), but rather targeting a different segment of value-conscious consumers.
The LOT store initiative by Lulu reflects a growing trend in the Gulf’s retail sector, focusing on convenience, affordability, and physical accessibility for shoppers. This strategy not only aims to meet consumer demand for low-cost items but also positions Lulu as a key player in the evolving landscape of retail in the region.
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