Emaar Malls buys e-tailer Namshi
Emaar malls completes stake in Namshi to boost its online retail strategy
UAE fashion e-tailer Namshi has been acquired by Emaar Malls, the retail business of Emaar Properties.
Emaar, which already took a 51% stake in Namshi in 2017, has acquired the outstanding business through the acquisition of the remaining stake of Global Fashion Group (GFG) in Namshi, in an all-cash transaction of AED 475.5 million ($129.5 million).
Emaar said that the deal will strengthen its digital strategy to leverage e-commerce markets in the Middle East and North Africa.
Namshi says it has base of 1.2 million customers and recorded sales AED 849m ($231.3m) in sales in the UAE and Saudi for 2018, and increase of 16% year-on-year.
Mohamed Alabbar, Chairman of Emaar Properties, and Board Member of Emaar Malls, said: "The remarkable growth achieved by Namshi underlines the potential for fashion e-commerce in the region, where, every day, a larger number of people shop online to meet their fashion aspirations. With the consolidation of our stake in Namshi, we are highlighting our commitment to position Emaar Malls for growth over the next decade and to create outstanding value for all our shareholders through our omnichannel strategy."
Patrick Bousquet-Chavanne, Chief Executive Officer of Emaar Malls, added: "Namshi is a remarkable success story that reflects the changing shopping habits of young fashion-conscious customers in the region. The majority acquisition of the company in 2017 had heralded a new era for Emaar Malls in building its online presence. Today's acquisition underlines the acceleration of our ‘Digital Forward' strategy to leverage the growing e-commerce market in the Middle East and North Africa region. This will enable us to further accelerate the talents and operational synergies between the two businesses, as well as drive the growth of Namshi by drawing on the superb retail infrastructure of Emaar Malls. We thank the GFG team for their valuable support in driving the growth of Namshi in recent years."