Lulu Retail Posts €1.7bn Revenue on E-commerce Growth
Gulf-based retailer Lulu Retail Holdings posted €1.7 billion in revenue for the second quarter of 2026, driven by a surge in online sales and a rapid expansion of its smaller-format store network. The company reported $1.97 billion in total sales for the period, with e-commerce revenue climbing 53% year-on-year to $165 million, representing 8.9% of total retail sales.
Gross profit reached $453 million, or 23.0% of sales, a margin the company kept broadly stable. EBITDA stood at $182 million, sustained by a tight 1.2% cap on operating expenses. Net profit totaled $42 million, supported by a stable balance sheet and low capital expenditure levels.
The retailer opened six new locations during the quarter, including four Mini Markets in Saudi Arabia and one Express and one Mini Market in the UAE. This push toward smaller, localised footprints has allowed the company to exceed its initial full-year target of 18 to 20 new stores.
Investments in the proprietary e-commerce channel yielded a 138% surge, successfully driving digital penetration and basket growth. While food sales grew steadily alongside increased private-label adoption and Happiness membership sign-ups, non-food segments faced headwinds from cautious consumer spending and aggressive price reductions on high-value electrical and lifestyle goods.
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This expansion of the physical network and simultaneous acceleration of digital sales creates a complex challenge for the average shopper. On one hand, the increased density of smaller stores means customers in residential areas have easier access to fresh groceries and essential goods, often without the need for long trips to large hypermarkets. On the other, the aggressive push into e-commerce, powered by a proprietary platform that has more than doubled in the last year, fundamentally changes how these goods are delivered, potentially increasing reliance on logistics and delivery infrastructure that can be vulnerable to regional instability.
Despite broader regional tensions, all Lulu stores remain fully stocked and operational. The board approved a $750 par-value acquisition of a related-party business in the Seychelles, a move aimed at establishing a modern grocery store in the high-income, import-dependent market.
“Despite the disruption earlier in the year, we have seen that trading conditions have begun to normalise,” said Saifee Rupawala, CEO. “Although the weaker consumer environment impacted non-food sales in Q2, I am pleased that the company returned to modest growth in July. Our expansion plans and strategic projects remain on track. This includes the investment and focus on our e-commerce offering, which has more than doubled in less than a year.
