"Kuwaiti luxury retail market thrives "

In spite of its relatively small population, Kuwait has all the makings of a thriving luxury retail market. With GDP per capita among the highest in the world, spending power is consequently very high. This increased ability to purchase goods, combined with a young population that views shopping as a popular leisure activity in its own right, suggests there is major potential for the luxury retail segment.

Working in tandem with Kuwait’s rising prosperity is the increase in the availability of dedicated retail space, which is opening up new opportunities for luxury retailers. The luxury segment in Kuwait has historically been well supplied, but over the past few years the amount of retail space available has increased significantly, as has the number of brands with a presence in the country.

The Avenues, one of Kuwait’s biggest malls, comprises 270,000 sq metres of gross leasable area, and consists of a number of zones that cater to different segments of the market. Of these, the “Prestige” section houses many high-end fashion brands, anchored by the upmarket British department store, Harvey Nichols, which opened a 10,000-sq-metre store there in 2012. The Avenues is also home to “The Souk”, which houses retailers selling traditional goods, such as oriental perfumes and traditional Arab dress, which can command a very high price at the upper end of the market. Other shopping malls, such as 360 Mall, also have dedicated high-fashion sections, home to houses such as Cartier, Prada, Jimmy Choo and Salvatore Ferragamo, while the Al Hamra Luxury Centre is home to brands such as Hermès, in addition to boutiques selling Arab scents and jewellery.

Kuwait is home to many major global luxury fashion brands, which – like all foreign firms – must partner with local retail groups to operate in the country. Alshaya, another local franchise group, holds luxury brands such as Harvey Nichols, Debenhams, while Habchi and Chalhoub hold brands such as Christian Dior, Fendi and Louis Vuitton. The local and regional luxury fashion and retail industry is also thriving in Kuwait. Brands in this category include Rasasi, an oriental fragrance brand founded in 1979 in Dubai, and Octium, a local jewellery brand founded in 2009, with stores in Kuwait and New York.

Source: Oxford Business Group

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Oxford Business Group