Dubai: The UAE hypermarket operator Lulu is making sure its supply pipelines are operating at a perfect pitch. This time, it has opened a food processing and export hub in Milan, Italy, as the retailer widens its sourcing arrangements across Western Europe.

It earlier opened bases in the UK and Spain, to go along with all the other centralised sourcing arrangements Lulu has in place in Asia and elsewhere.

The Milan base is located at the World Trade Center Malpensa Airport, and will focus on sourcing, processing, storing, packaging and exporting of food products from Italy to ‘more than 255 Lulu Hypermarkets spread across GCC countries, Egypt, India, Indonesia and Malaysia’.

Lulu in the recent past has categorically dismissed any suggestions that Western Europe represents the next big opportunity for a retail presence through its hypermarkets. Instead, the emphasis has been on creating supply and food processing centers to feed into the store networks it operates elsewhere. This remains the case even with the move into Italy.

“We will be initially exporting worth 50 million euros and expect to reach 200 million euros in 2 years,” said Yusuffali M. A., Chairman and Managing Director of Lulu Group. “We are tying up with Italian farmers cooperative societies to source fruits and vegetables, which will surely have a very positive impact on the agricultural sector of Italy.

“In addition, this project will also generate significant employment in Italy.”