Chalhoub Group, a UAE-based luxury retail distribution company, has received a license to operate a fulfilment centre at Saudi Arabia’s first special integrated logistics zone. The move comes as the company seeks to reduce lead time and enhance last-mile deployment for its flagship facility.
In a statement, the company revealed that the General Authority for Civil Aviation in Saudi Arabia has issued the license, which has enabled Chalhoub Group to enter into a 50-year lease agreement with Riyadh’s Special Integrated Logistics Zone. The distribution centre, which is slated to open in mid-2025, will have a surface area of 35,000 square meters and a building area of 21,000 square meters.
According to the company, the new facility is expected to increase the Chalhoub Group’s ability to process shopping orders in the region fourfold and create roughly 200 direct job opportunities in Saudi Arabia. The fulfillment center will use advanced technologies to optimize operations and improve the customer experience, offering a range of services such as packing, shipping, and order tracking.
With the new center, Chalhoub Group aims to cater to the growing demand for luxury products in Saudi Arabia and the wider region, while also expanding its presence in the country’s retail market. The company has been present in Saudi Arabia for over 40 years and has established itself as a leading distributor of luxury goods.
The Special Integrated Logistics Zone in Riyadh, where the fulfillment center will be located, is part of Saudi Arabia’s ambitious Vision 2030 plan, which aims to diversify the country’s economy and reduce its dependence on oil. The zone is designed to promote the growth of the logistics sector in the country by providing world-class infrastructure and services to businesses.
The zone spans over 3.5 million square meters and includes a range of facilities such as warehouses, offices, and residential areas. It is strategically located near the King Khalid International Airport and major highways, making it an ideal location for businesses looking to expand their operations in the region.
Chalhoub Group’s decision to open a fulfillment center in the Special Integrated Logistics Zone is a testament to the growing importance of Saudi Arabia in the global luxury retail market. With its young, tech-savvy population and high disposable income, the country presents a significant growth opportunity for luxury brands.
The move also underscores Chalhoub Group’s commitment to innovation and technology, as the company seeks to leverage cutting-edge solutions to improve its operations and enhance the customer experience. By investing in advanced fulfillment capabilities, the company aims to stay ahead of the curve in an increasingly competitive retail landscape. Chalhoub Group’s expansion into Saudi Arabia also reflects the company’s commitment to the region’s economic growth and its long-term strategy to strengthen its position as a leading luxury retail distributor. The company has a strong track record of innovation and adaptation, having been in operation in the Middle East for over 65 years.
With the opening of its new flagship distribution center in Riyadh’s Special Integrated Logistics Zone, Chalhoub Group is poised to take advantage of the opportunities presented by Saudi Arabia’s growing e-commerce market and contribute to the country’s ongoing economic diversification efforts.
In conclusion, Chalhoub Group’s decision to open a flagship distribution center in Saudi Arabia’s first special integrated logistics zone is a strategic move that underscores the company’s commitment to the region and its growth potential. The new center is expected to boost the company’s ability to process shopping orders and enhance the customer experience, while also creating job opportunities in Saudi Arabia. With the country’s ambitious Vision 2030 plan and the growing demand for luxury products in the region, Chalhoub Group is well-positioned to capitalize on the opportunities presented by the Saudi market.
