GMG to operate French supermarket chain Geant in UAE

GMG on Tuesday announced that it made foray into the food retail category with the acquisition of Geant operations in the UAE and exclusive rights to expand the French supermarket chain operations in the Middle East,

In a statement, the Dubai-based global well-being company retailing, distributing and manufacturing a portfolio of leading international and home-grown brands across sport, food and health sectors, said it had acquired the UAE’s operations of Geant from Urban Food — a grocery and household retail supermarkets and hypermarkets company owned by Dubai Holding.

GMG, which operates pharmacies, nutrition stores, and sports equipment and apparel stores, did not disclose the value of the deal, but said the acquisition marks its first entry into food retailing. The Geant deal follows another high-profile GMG retail acquisition of Royal Sporting House in 2020.

“This acquisition is a milestone in our history as we venture into the food retail category. In doing so, we are able to cover the entire consumer journey from food manufacturing and dis-tributing to retail,” Mohammad A. Baker, deputy chairman and CEO of GMG, said.

Moreover, he said the diverse portfolio of Groupe Casino’s supermarket brands will allow “us to cater to all categories of consumers”, from the price-conscious to those desiring more premium and specialty products.

New openings

Geant is a part of Groupe Casino, a French retailing giant with a turnover in excess of €35 billion.

“GMG is acquiring Geant’s current UAE retail footprint from Urban Foods by Dubai Holding. This will include a total of 18 hypermarket and supermarket locations across the UAE, with the new openings featuring some of Groupe Casino’s other brands such as Franprix and Monoprix, to which GMG will also have exclusive rights to expand,” according to the GMG statement.

“The Dubai Hills Mall hypermarket is a very recent location that opened in Dubai,” according to GMG spokesperson said.

In reply to a question about expansion of Geant network in the UAE, he said there are several new locations already being planned within the UAE, details of which GMG will announce as the projects are near completion. Moreover, he said GMG is fundamentally a growth company. That ambition is going to be reflected in Géant’s future retail strategy.

Last year, GMG announced the redesign of its business into four verticals: GMG Sports, GMG Food, GMG Health, and GMG Consumer Goods. The latest acquisition falls under the GMG Consumer Goods vertical, bringing the total workforce to over 700 employees.

In 2021, GMG also announced plans to double its global workforce by 2025 as part of a revitalised business strategy that reiterates its objectives to promote healthier and more active lifestyles.

Growing original food brands

Meanwhile, GMG continues to grow its original food brands Farm Fresh and Klassic, as well as being a distributor for popular food brands such as McCain, Mama Sita’s, and Shan. To date, GMG has introduced more than 120 brands into its markets.

“Our acquisition comes at a time when the Middle East’s food economy is undergoing a major transformation,” Baker said.

He said consumer preference has shifted to locally-sourced food items and sustainable food options, while governments are simultaneously exploring ways to enhance food safety and promote food security in line with their national development visions.

“In the coming years, our intention is to cover the entire food consumption chain from farm to fork,” Baker adds.

Recently, GMG also acquired the rights to manage, distribute, and retail the Nike brand in Egypt and Iraq starting in third quarter of 2022, contributing to a diversified sports portfolio that already covers over 400 stores across the Mena region and Asia.

Strong market proposition

The GMG spokesperson said Geant has a strong market proposition in the UAE today with a clear brand affinity amongst consumers.

“The Geant brand is also known for its strong commitment to environmental sustainability and promoting a positive and cohesive community lifestyle. This very much aligns with GMG’s purpose as a global well-being company,” he said.

“GMG believes this acquisition complements its current food portfolio and ambitions in the food sector. Within the food industry, GMG is committed to adding value to the food economy through producing locally and supplying its customers with fresh and nutritious offerings,” the spokesperson said.

In the future, that may involve acquiring new international brands, developing existing concepts, or entering new markets,” he said.

— muzaffarrizvi@khaleejtimes.com