Lulu Retail Holdings reported a 2 per cent year-on-year increase in revenue to $1.9 billion in the third quarter of 2026, supported by new store openings and strong growth in online shopping, despite continued pressure on consumer spending.
The Abu Dhabi-listed retailer recorded profit of $444 million, earnings before interest, taxes, depreciation and amortization of $175 million and net income of $29 million during the three months ended September 30.
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Food sales grew year-on-year in each month of the quarter, while non-food categories remained affected by weaker consumer sentiment, although performance improved compared with the second quarter.
Online sales jump 53%
E-commerce remained one of Lulu’s strongest growth drivers, with online sales increasing 53 per cent year-on-year and accounting for 9.7 per cent of total retail sales during the quarter.
Sales through Lulu’s own digital platform more than doubled compared with the same period last year, outpacing growth through third-party delivery platforms.
The retailer said its redesigned app, which includes live order tracking and improved search features, now has more than one million monthly active users.
The number of stores supporting online orders has also broadly doubled over the past year.
Five new stores opened
Lulu opened five stores during the third quarter, including two in Saudi Arabia and one each in the UAE, Oman and Kuwait.
The openings added approximately 18,800 square metres of retail space and brought the number of new stores opened during the first nine months of 2026 to 22.
The company is also progressing with its expansion plans for 2027 to 2031, with approximately one-third of future openings expected in the UAE, particularly Abu Dhabi and Dubai.
Another third will be in Saudi Arabia, while the remainder will be spread across other GCC markets.
More than three-quarters of the planned stores are expected to be smaller Express or Mini Market formats.
Cost pressures remain
Saifee Rupawala, Chief Executive Officer of Lulu Retail, said trading conditions were gradually returning to normal despite ongoing uncertainty.
“Revenue growth in Q3 is encouraging and this gives us optimism as we go into Q4 and next year,” he said.
He added that the company’s focus on controlling operating expenses, including reducing costs at existing stores, had helped maintain profitability.
Lulu said higher input costs and limited ability to pass these increases on to customers affected gross margins, while disciplined cost management supported earnings.
The company also increased inventory holdings to strengthen supply chain resilience and maintain product availability.
Meanwhile, Lulu’s Happiness loyalty programme reached 10 million members across the GCC during the quarter.
The retailer said it would continue investing in digital services, artificial intelligence and supply chain efficiency to support future growth.
Source: Khaleej Times