MILAN — When Michael Chalhoub took over the company his grandfather, also named Michael, started 70 years ago, he found himself at the helm of the Middle East‘s biggest luxury retail group. He also found himself steering it amid an era of great change, geopolitical unrest and unprecedented growth.

Today, the Chalhoub Group manages a network of 950 retail stores and 65-plus e-commerce platforms, with more than 16,000 employees across the Middle East and North Africa. The company serves as the regional distribution and joint venture partner for hundreds of global fashion, luxury and beauty brands including a portfolio of LVMH Moët Hennessy Louis Vuitton labels: Louis Vuitton, Christian Dior, Fendi, Celine and Sephora. In addition, the group is the regional partner of Puig, Christian Louboutin, Versace, Jimmy Choo and Jacquemus, among others.

The transition to chief executive officer, a role his father Patrick held until January, marks a new chapter for the luxury retail and distribution group.

In an interview with WWD, the 38-year-old describes how this new era, which includes e-commerce expansion across the Middle East, is poised to corner untapped potential markets like Saudi Arabia. The Chalhoub Group, he said, is in the midst of readying a new distribution center in Riyadh to satiate the growing country’s appetite for luxury goods, driven by the digital exposure of its younger generations.

The new distribution center will cater to major cities like Riyadh and Jeddah, but also secondary ones in the Gulf nation, where ultra speedy deliveries of 90 minutes or less are on the rise.

WWD: According to the Saudi Arabian Fashion Council, a remarkable 98 percent of the population is equipped with smartphones, impacting how they engage with brands and most of all the velocity in which they shop. How much of Chalhoub’s sales are currently booked in Saudi? What segments perform best there?

Michael Chalhoub: Saudi Arabia grew at a double-digit share last year, following years of investment, and we expect continued healthy single-digit growth across all segments. Our presence at Solitaire Mall [in Riyadh] with more than 12 brands reflects the Kingdom’s appetite for luxury as both a shopping and entertainment destination. Fashion and beauty remain the strongest performing categories, driven by demand for elevated experiences.

WWD: The Saudi Arabian Fashion Council also pegged the Saudi Arabian e-commerce market to rise to $7 billion in 2028 from $4 billion in 2023. Is Saudi Arabia your main focus, and if so, why?

M.C.: Saudi is a major focus alongside the UAE, but we approach the two markets differently. With Tawreed’s [Chalhoub’s distribution hub] launch in Riyadh integrated, we’re strengthening infrastructure to support giga-projects and meet demand with speed and efficiency. Dubai’s Jafza [where the group’s headquarters were first established in the Dubai, UAE in 1990] remains a hub for regional distribution. This dual model gives us a strategic edge in logistics. In Saudi, [our focus is about keeping our] investment centers on scale and infrastructure; in the UAE, it’s about keeping pace with tourism, customer expectations and omnichannel innovation. Ultimately, our customer guides us, from building fulfillment centers to launching 90-minute delivery during Ramadan, ensuring we remain agile and adaptive across the region.

WWD: You mentioned the goal of delivering a pair of Level shoes in Saudi Arabia within 90 minutes…what are the challenges to that? 

M.C.: The 90-minute delivery is less a challenge than an opportunity to get closer to our consumers. It requires planning months in advance, building the right infrastructure and anticipating seasonal demand such as [Muslim holidays] Ramadan and Eids in our region, but it’s ultimately about customer centricity. Fast delivery strengthens engagement, deepens brand connection and supports our ambition to create luxury experiences that go beyond retail, making every interaction more seamless and personal.

WWD: What are Chalhoub’s sales targets this year? How much did e-commerce business grow in the first half? 

M.C.: We stand at more than 8 percent growth year-to-date, strong profitability in both the UAE and KSA [the Kingdom of Saudi Arabia]. E-commerce now makes up over 18 percent of our retail sales. 

We aim to continue our positive single-digit growth this year, maintaining a cautiously optimistic approach across the region despite broader market declines and the regional geopolotical uncertainties. 

WWD: What are the biggest challenges to the e-commerce business right now? 

M.C.: Luxury still relies on brick-and-mortar experiences, making it essential to deliver seamless services both in-store and online. The entire value chain must work in sync, ensuring customers can explore online and receive a seamless experience, whether the purchase is done online or offline. This digital acceleration is driven by strong domestic demand, an influx of affluent international shoppers, high adoption of omnichannel experiences and the rapid growth of emerging categories like skin care.

WWD: What brands are performing best and why? 

M.C.: What I can highlight is that the UAE continues to lead in driving the GCC growth, supported by KSA’s rapid acceleration, with luxury fashion [purchases] accounting for 43 percent of total personal luxury market in the GCC.

WWD: Bridging Horizons is the Chalhoub Group’s strategic plan to redefine luxury, expand its global footprint and become an international brand owner and investors. Key pillars include driving innovation, such as using AI in retail, prioritizing sustainability through its Net Zero roadmap and fostering a people-first culture that emphasizes well-being and diversity. On a personal level, as you embarked on this new role at the beginning of the year, what are your goals for Chalhoub and how is that evolving?

M.C.: When I took on this role earlier this year, my first priority was to immerse myself, listen and support the team. We already had a strong alignment thanks to [Chalhoub’s Group] Vision 2033, developed under Patrick Chalhoub’s leadership and myself, along with the executive committee, that consists of 30 percent women and multiple nationalities. My role is to ensure bringing our ambitious vision to life, which is to be an international luxury brand builder, bridging cultures and inspiring dreams. While continuing to drive growth, digital transformation and innovation. At the same time, my priority has been continuity and performance, maintaining our approach of cautious optimism, especially in our region.

This also means owning our Vision 2033 and ensuring a strong start to this journey. Marking our 70th anniversary, this transitional year has been significant beyond my role as CEO: a year of celebration, honoring our past while looking ahead, captured in what we’ve called our Symphony of the Future.