What: Majid Al Futtaim will close THAT Concept Store in Dubai’s Mall of the Emirates, redeploying its space as part of a $1.3 billion transformation into an experience-led luxury destination.

Why it is important: Majid Al Futtaim’s move reflects the challenges of sustaining homegrown concepts amid global competition and the need for strategic real estate adaptation.

Majid Al Futtaim is closing THAT Concept Store at Dubai’s Mall of the Emirates, ending a five-year experiment in homegrown, curated multibrand retail. The closure comes as part of a $1.3 billion overhaul to reposition the mall as a next-generation, experience-led luxury destination, with a sharper focus on global brand partnerships and immersive experiences. This strategic reset is a response to the acute strain on the UAE’s retail and hospitality sectors following regional geopolitical turmoil and a sharp decline in tourism, which has significantly impacted luxury spending and mall footfall. THAT Concept Store, launched in 2021, filled a niche for discovery-led retail but now gives way to a more flexible, asset-driven approach as the mall adapts to volatile market conditions. The move highlights the difficulty of sustaining local retail innovation in a landscape dominated by international brands and underscores the importance of real estate agility and experiential formats in maintaining relevance and growth in the Gulf’s evolving retail environment.

IADS Notes: The closure of THAT Concept Store at Dubai’s Mall of the Emirates marks a pivotal moment in the evolution of retail strategy in the region, as Majid Al Futtaim pivots toward a next-generation, experience-led luxury destination. This move comes amid a $1.36 billion transformation plan for the mall, reflecting the group’s operational discipline and commitment to innovation, as highlighted by its 6% revenue rise and strong profit gains in 2025 (Fashion Network, March 2026). The decision to redeploy THAT’s space aligns with a broader industry trend, where multibrand concept stores and discount-driven models are being restructured or shuttered in favour of more agile, curated, and experiential retail formats (BoF, December 2025). Despite Dubai’s resilience in luxury retail, with continued growth and major investments in infrastructure and experiential concepts (BoF, June 2025), the sector has not been immune to the shocks of regional geopolitical turmoil and declining tourism. The transformation of traditional retail spaces into immersive, lifestyle destinations, as seen with Beymen’s flagship in Istanbul and Westfield’s Allders Parade, further underscores the necessity for flexibility and innovation in today’s volatile market (Monocle, December 2025; Retail Week, September 2025).

Majid Al Futtaim to close THAT concept store in Dubai’s Mall of the Emirates