Aldar Properties has signed an agreement with the luxury brand retailer Chalhoub Group to create the region's largest department store, at Abu Dhabi's soon-to-open Yas Mall.
Chalhoub, which opened the world's largest shoe store – the 96,000 square feet Level Shoe District in The Dubai Mall in 2012 – said that it had signed an agreement with Aldar to lease 200,000 sq. ft. of shopping space in Yas Mall.
In a statement yesterday, Chalhoub said that the new store would showcase 200 global brands with concessions and designers covering beauty and cosmetics, fashion, accessories and "an extensive children's selection”.
The new store would surpass the 192,000 sq. ft. Galeries Lafayette store in The Dubai Mall which opened in 2009 and is currently the region's largest single store.
"At the moment Abu Dhabi is significantly behind Dubai in terms of retail with no destination mall in the city so far,” observed Matthew Green, the head of research and consultancy at CBRE's Dubai office. "Although the size of this new store is fairly comparable with Harvey Nichols or Galeries Lafayette, the difference is that in Abu Dhabi there is very little else to compete with something like that.”
Aldar did not say how much the rent would be on the big new store. According to Moody's estimates, Aldar's recurring revenues will grow to around Dh745 million by the end of the year, a quarter of which will be generated by the 2.5 million sq. ft. Yas Mall alone.
"We believe that Yas Mall is the perfect place for us to be launching a new and exciting store concept to market and showcase a selection of international design houses,” the Chalhoub Group chief executive, Patrick Chalhoub said.
Aldar said that the deal meant Yas Mall is now 95 per cent leased ahead of the opening which is planned for November. However, it added that the new department store would not be among the shops pulling up their shutters for the first time at the grand opening scheduled for the weekend of Friday, November 21.
Chalhoub employs more than 9,000 staff across 14 countries and manages more than 470 retail outlets, partnering with brands such as Chanel, Fendi, Saks Fifth Avenue Baccarat, Christofle, Christian Dior, Louis Vuitton and Nina Ricci.
The group has expanded its presence in Abu Dhabi over the past few years, opening stores such as the children's luxury clothing outlet Katakeet in Abu Dhabi Mall as well as branches of its Faces beauty concept in Bawabat Al Sharq, Khalidiya Mall, Marina Mall and Mushrif Mall.
The group also operates branded stores such as Fendi, Christian Dior, Lacoste and Mulberry in the capital, especially at Mubadala's new Galleria luxury shopping centre on Al Maryah Island and in Marina Mall.
"We believe that by creating a new concept, with one of the region's most respected luxury retailers, we will create a unique shopping experience that complements the diverse retail mix already in place at the mall,” said Mohammed Al Mubarak, the Aldar chief executive.
Last week Aldar announced that the long-delayed Yas Mall would also house the second House of Fraser store outside the UK as well as Hamleys the world's oldest toy shop and Joe Fresh, a Canadian fashion brand.
Yas Mall is being built by Six Construct. When it was appointed in October 2011, the completion date for the mall was initially set for the fourth quarter of 2013. The opening date was then delayed until spring 2014 before being moved to coincide with Abu Dhabi's Formula One weekend in November.
Source: The National