GMG pursues aggressive global expansion in sports retail with RSH acquisition
Gulf Marketing Group (GMG), one of the Middle East's leading family-owned holding companies, is considerably expanding its global presence in the sports retail market through the purchase of Royal Sporting House (RSH), one of the largest multi-brand sports retailers in Southeast Asia.
Over the last four decades, the GMG Sports division has expanded from a single retail store in Dubai, UAE, to over 300 stores in 18 cities across six countries, becoming the principal sports retailer in the MENA region. The GMG Sports portfolio comprises homegrown brands such as Sun and Sand Sports as well as being a supplier for global brands like Nike, Columbia, Timberland, Vans, and more.
Through the RSH acquisition, GMG Sports is increasing its presence in the Gulf and entering some of the biggest markets in Southeast Asiaincluding Indonesia, Malaysia, and Singaporeas well as Hong Kong and Egypt. The UAE-based holding company will now operate over 550 sports retail stores in 57 cities across 12 countries. This will include more than 1.9 million sq. ft. of physical retail space, 10 warehouses, and employing nearly 8,000 people. With the enlarged presence, GMG Sports will now have the potential to reach more than 700 million consumers around the world.
Mohammad A. Baker, Deputy Chairman and CEO of GMG, said: This acquisition is a significant milestone in the development of GMGs diverse portfolio. As people around the world continue to embrace active and healthy lifestyles, the incorporation of RSH operations into the GMG network of stores further reinforces our leading position in sports retail across the MENA region, and allows us to reach hundreds of millions of potential new consumers across Southeast Asia, Hong Kong, and Egypt. This expansion is a strategic step in taking our business and vision global.
Despite the significant disruptions to the international retail industry, the strength and resilience of GMGs business strategy enabled us to overcome these challenges and double down on our expansion plans. At our core, we are a growth business with long-term worldwide ambitions, added Baker.
In addition to the sports division, GMG also has a increasing presence in other business verticals, including healthcare, food, education, real estate, and logistics. Across the holding group, it has successfully scaled homegrown brands such as Supercare pharmacies, food brand Farm Fresh, and logistics provider Trilogi. GMG has also introduced more than 90 international brands into the Middle East to date.
As an entrepreneurial business, we always look to where the market and consumers are moving to. We are extremely enthusiastic to take our GMG vision and our sports expertise to new geographies, generating economies of scale while delivering additional value to our customers, concluded Baker.
