Landmark prefers the mid-market space
Group has no plans to introduce premium brands as it believe there is more sense in value
Dubai: For the Landmark Group, going upscale is clearly not on the agenda.
“We are comfortable occupying the mid-market space with all of our brands ... if at all we see better prospects through going a bit lower on the pricing side through ‘value’ concepts rather than premium brands,” said Vipin Sethi, CEO. “The group’s biggest strength is the fact we have been steadfast about being a mid-market operator. Even when the crisis of 2008 happened, that’s a key reason why we were less affected than some of the other players.”
Chasing value is paying off. Its second furnishing and accessories line, Home Box, targets a more budget conscious clientele compared with the flagship Home Centre stores. “It’s a year old and we have four stores, two each in the UAE and Saudi Arabia, and are coming along nicely,” said Sethi. “It’s something we had already attained through the Max apparel brand.
“Much the same strategy was repeated through rolling out Centrepoint outlets in key locations within the UAE and outside. A typical Centrepoint would be about 3,000-5,000 square metres and a Max store within would be 1,000-2,000 square metres. That gives us a nice bit of arbitrage opportunity.”
Talk of depressed retail sector sentiments has not led Sethi to set lower growth targets for the Group. He believes 12-18 per cent annual growth is doable. “We will take up space for the in-house brands in any new major mall ... that way we get to add to our market share because the market itself would be growing. Being in new locations is not just about retaining the existing market share that we command.”
In the medium-term, it will build on the franchise-led expansion in Africa. Its brands already have exposure in Kenya and Tanzania, and will soon be entering Nigeria. In India, having built a presence in key metropolises, the next move is to gain a foothold in the smaller cities.
“The GCC accounts for 80 per cent of the Group’s turnover ... I don’t think that would whittle down even with all the additional markets we are in. The Gulf markets are still growing and our revenues from them will do so accordingly.
