What: Chalhoub Group is accelerating its expansion in Saudi Arabia’s luxury market through digital innovation, infrastructure investment, and a focus on rapid e-commerce growth.

Why it is important: The leadership transition and digital strategy illustrate how family-owned retailers can adapt and thrive in evolving markets, building on insights from the past year.

Chalhoub Group, under the new leadership of Michael Chalhoub, is intensifying its efforts to capture Saudi Arabia’s burgeoning luxury market by investing in digital infrastructure and rapid e-commerce delivery. The company, which manages a vast network of retail stores and e-commerce platforms across the Middle East and North Africa, is leveraging its expertise to meet the demands of a digitally savvy, youthful Saudi population. With the launch of a new distribution center in Riyadh and the implementation of 90-minute delivery services, Chalhoub is setting new standards for customer experience in the region. E-commerce now accounts for over 18 percent of the group’s retail sales, reflecting a broader trend toward omnichannel innovation and digital acceleration. Despite regional geopolitical uncertainties, the group remains cautiously optimistic, focusing on sustainable growth, operational efficiency, and a people-first culture. The transition to Michael Chalhoub as CEO marks a significant generational shift, reinforcing the group’s commitment to Vision 2033 and its ambition to become an international luxury brand builder.

IADS Notes: Recent reports from May 2025 (WWD, “Chalhoub’s outlook on the region's growth and the company's strategy to reach $15 billion by 2027”; BoF, “Michael Chalhoub’s strategic roadmap for Chalhoub Group”) highlight Chalhoub Group’s strategic focus on Saudi Arabia, where double-digit growth and digital transformation are driving the region’s luxury market. The leadership transition to Michael Chalhoub in January 2025 (L’Orient-Le Jour, “Patrick Chalhoub hands over CEO position to his son Michael”) has accelerated these initiatives, with comprehensive digital solutions and AI-powered infrastructure implemented since November 2024 (Press Release, “Chalhoub Group accelerates digital future with major SAP partnership”). The group’s commitment to sustainability, supported by an ESG-linked working capital facility in November 2024 (Press Release, “Chalhoub Group secures ESG-linked working capital facility from Emirates NBD”), aligns with Saudi Arabia’s Vision 2030 and reinforces Chalhoub’s leadership in responsible retail practices.

Chalhoub Group’s Michael Chalhoub on cornering Saudi Arabia’s untapped potential