Chalhoub Group’s Expansion into Digital Luxury – A New Era for the Middle Eastern Retail Leader

The Chalhoub Group has been the backbone for luxury retail in the Middle East for many years although it has its origins more innocuous. It started in 1955 when brother and sister team Michel and Widad Chalhoub opened the first store in Damascus, Syria. This boutique sold the finest French silverware brand, Christofle. Economic instability and the very small market of Syria forced the family to look further afield for other opportunities. It expanded its operations to Beirut, Lebanon, in 1965, further stretching across the region into the Gulf.

With tensions in political affairs moving upwards with the start of the Lebanese Civil War in 1975, Chalhoub relocated again to Kuwait as the subsidiary there was already doing well. Nevertheless, the final relocation was made in 1990 when headquarters were established in Dubai, United Arab Emirates. The move was strategic, as the group now stood in one of the most vibrant and growing luxury markets of the world. Over the tenure of Michel and Widad’s sons-ANthony and Patrick Chalhoub, co-CEOs since 2001-the group has experienced the growth unprecedented in its history. The Chalhoub Group today stretches across the Middle East, establishing retail, distribution, and marketing services for some of the world’s top brands. Unfortunately, Anthony Chalhoub passed away in 2018, and so Patrick is the sole CEO of the group now.

Today, Chalhoub Group operates more than 750 stores in the region and also has a luxury portfolio that includes joint ventures with iconic brands like Louis Vuitton, Dior, Fendi, and Sephora. This rather unique co-management model gives the company the opportunity to closely partner with those brands and also launch new labels in the market. Retail franchises it covers include Saks Fifth Avenue, Loewe, Carolina Herrera, Swarovski, and Michael Kors, among others.

The strategy of Chalhoub Group focuses much on forming partnerships. In 2018, the firm entered into a joint venture with Farfetch, the UK luxury fashion e-commerce platform. Through this partnership, Chalhoub started to expand into the digital space as it allowed its curated luxury brands on the platform of Farfetch. This move showed how Chalhoub was keen to stay abreast of consumer behavior, especially since there was a rise in online shopping. Chalhoub entered into an agreement with Korloff, a French luxury jewelry and watch house, in 2022, and opened various locations in the UAE, Bahrain, and Qatar. More recently, Chalhoub also invested in a majority stake in the London-based e-retailer of personal shopping, Threads Styling, at once further solidifying its position as one of the leaders in digital luxury .

The Chalhoub Group is more than a distributor; it’s an innovator in the luxury market. The company launched a string of own-concept stores and brands to attract regional tastes. These comprise Tanagra, a luxury lifestyle and gift store chain, Level Shoes, an expansive 96,000-square-foot footwear emporium in Dubai Mall, and Ghawali, an upscale oriental fragrance brand. In 2017, Chalhoub acquired Christofle, the very brand with which it began its journey, setting up a full-circle moment in the world of luxury.

Chalhoub Group pays attention to luxury goods, but also to developing its people. In 2007, the company established the Chalhoub Retail Academy in Dubai, then a second branch in Saudi Arabia in 2009. These academies are committed to training the front-line staff within customer service, brand knowledge, and salesmanship so that the Chalhoub Group never fails to uphold its standards in all retail outlets.

The company seems to hold onto a solid blend of old and new. Since its inception over six decades ago, the company was not only instrumental in changing the very face of the retail landscape in the Middle East but also began looking toward international markets. Going forward, its immediate plans are further digital expansion and furthering growth in the portfolio of luxury brands and possibly into Saudi Arabia and Europe.

Innovation and strategic partnership, together with a strong focus on luxury, make the Chalhoub Group a leading player in the global luxury goods market-a true testament to the vision of Michel and Widad Chalhoub, who started it all in 1955.