Union Coop sees Dh2.7B net profit in five years

dubai — Retailer Union Coop expects to post steady growth in net profit during the 5–year period of 2018-2022, growing 18.7 per cent or Dh430 million to Dh2.73 billion.

The retailer revealed its projected revenue of Dh5.69 billion for the year 2022 and total revenue for the five years estimated at Dh20.6 billion on the back of improved efficiency in operations by deploying initiatives aiming to leverage the performance of existing branches, developing new branches and boosting online shopping.

Majid Hamad Rahmah Al Shamsi, chairman of Union Coop, said the company will keep up with the changing retail landscape by offering shopping channels for the convenience of consumers in the form of online shopping, shopper valet, home delivery and more services.

He revealed that the retailer is also planning to expand outside Dubai.

The investment in assets until the end of 2017 amounted to Dh2 billion and is expected to further increase by Dh1.93 billion, with a growth rate of 97 per cent by the end of 2022. As per the growth plan, the estimated value of the assets will be Dh3.93 billion.

Union Coop was ranked sixth among competitors and third among consumer cooperatives in

Dh5.7b

Projected revenue for the year 2022

the country for the year 20022003. At present, it is ranked first.

As per the growth plan of 20182022, Union Coop’s total area will grow from 2.36 million sqft to 6.26 million sqft, at a growth rate of 264 per cent, the retailer said.

“Like every other entity in the retail sector, Union Coop also deals with a certain set of challenges such as site designs and furnisingh, selection of consultants and contractors of the highest international standards and the expansion of competitors according to corporate law, which is characterised by flexibility and ease unlike the cooperatives law,” Al Shamsi said.

He pointed out that many banks reduced their facilities, which has had a significant impact on the growth of suppliers and affected their performance and strength negatively in the market.

“The delay in issuing the updated Consumer Cooperative law is also one of the significant challenges that hamper the expansion of consumer cooperatives. The new law, which will be much more flexible in nature, will help consumer cooperatives in expansion,” he added.