The Otto Group, one of the world's largest retailers, plans to expand its Crate & Barrel home furnishing franchise in the UAE in what could be the first step towards building an online shopping empire across the Gulf. The German retail giant employs about 50,000 people worldwide and generated sales of more than ?10 billion (Dh53bn) last year. It operates more than 160 stores in North America and is owned by the Hamburg-based Otto Group.
Otto Group is now looking to tap into rising demand for online buying in a region where consumers have traditionally preferred to do their shopping in vast malls. The company has already announced plans to open two Crate & Barrel stores in the country. "We have started with two stores here and our intention is to open 10 or 20 and then go to further countries," Dr Michael Otto, the billionaire chairman of the company's supervisory board, said yesterday.
"Within the next three years we want to generate US$50 million (Dh183.6m) sales from Crate and Barrel stores but in five or seven years, of course, it should be much higher." Regional shoppers have not yet embraced online retailing to the same extent as their counterparts in Europe and North America. The UAE currently has the highest proportion of people using e-commerce, data from the research company Arab Advisors Group showed.
It said a bout a quarter of the population uses e-commerce. Saudi Arabia is in second place with 14.3 per cent, followed by Kuwait at 10.7 per cent. Local online retailers have also reported an increase in sales over the end-of-year shopping season. Quickdubai.com last week said its sales during the Eid Al Adha period rose 20 per cent compared to a year earlier, while Christmas sales advanced 25 per cent.
The Otto Group, which is second only to Amazon in terms of online sales, is hoping to capitalise on the trend. "We are very strong in distance selling, that means in the catalogue business or on the internet," said Dr Otto. "If we first start with Crate & Barrel stores, the next step could be online." @Email:scronin@thenational.ae