Gulf Cooperation Council (GCC) countries will overcome this crisis. We have seen it happen in 1979, 1986 and 1994. Business will not be hit as presumed. Our expansion plans will also not be affected, Yusuff Ali M. A., chairman of Lulu, said while opening its 16th outlet at Suwaiq in Oman.
Slowdown in the economy due to plunging oil prices has not affected the expansion of the retail sector or the hiring process in Oman, hypermarket chains’ officials in the country said.
“Gulf Cooperation Council (GCC) countries will overcome this crisis. We have seen it happen in 1979, 1986 and 1994. Business will not be hit as presumed. Our expansion plans will also not be affected, Yusuff Ali M. A., chairman of Lulu, said while opening 16th outlet at Suwaiq in Oman on Sunday.
“We’re very optimistic, and our optimism is based on the circumstances in general. The impact of the fluctuating oil prices is not going to distract us from our long-term business goals in Oman,” Yusuff Ali added. According to him, the hypermarket will open seven more outlets in Oman in the coming two years.
Another official from the same hypermarket said the slowdown in economy has not made them calling a halt to the hiring plans.
“Our hiring plans have not been affected. We are hiring both, nationals and expatriates. Our business is continuing as usual. Oil price dip has not hit us,” Ananth A.V, Regional Director, Lulu Oman, said.
According to Alpen Capital’s report, the GCC retail sales are expected to reach $284.5bn in 2018, with Oman, the United Arab Emirates (UAE), Qatar, Saudi Arabia and Kuwait ranking among the most attractive retail destinations worldwide.
Meanwhile, another official from a different hypermarket chain said they, too, have not stopped their expansion and hiring plans.
“We will be opening our biggest hypermarket in Oman in the coming months in Al Khoud. We will be employing more than 700 workers, both nationals and expatriates, in different categories,” Naveej Vinod, executive director of Mars International, said.
“We are seeing a positive growth in Oman’s retail sector. Oil price dip has not affected us at all,” Naveej added. Recently, there were rumours and media reports that oil price dip has affected retail sector’s expansion and hiring plans in Oman.
According to Business Monitor International (BMI) 2015 report, there are promising opportunities in Oman for retailers to expand.
“Although Oman’s population is small, at about 4m, retail is growing from a lower base, compared with the UAE, Kuwait and Qatar, where greater formalisation has taken place. We expected Gulf Cooperation Council (GCC)-focused retailers to increase their investment in Oman over our forecast period till 2019 as part of a wider regional diversification move,” the report says.
According to the report, food retailer Spar International had announced a partnership with Omani company Khimji Ramadas in December 2013, with plans to launch nine stores by 2016.
“There is a lot of room for growth in the country’s food retail sector, where sales are forecast to reach nearly $4.5b (from $2.2bn in 2014) over the forecast period till 2019,” the report adds.
Source: TimesofOman