The encyclopedia · Strategy & Leadership · Strategic decision · 2021–2026
Majid Al Futtaim's homegrown THAT Concept Store closed five years after opening
Majid Al Futtaim's first homegrown multibrand store closed in 2026 — its own $1.3B mall redevelopment and a tourism crash ended the experiment.
Majid Al Futtaim · 2026-05-21
What happened
THAT Concept Store opened in January 2021 as Majid Al Futtaim's first homegrown retail destination — more than 48,000 square feet across two floors of the Via Rodeo luxury wing at Mall of the Emirates, carrying over 150 international and regional labels from JW Anderson and Marni to regional names like Bil Arabi and Azza Fahmy, alongside a beauty hub, fitness studio and art space.
Five years later the group announced the store's closure, ending its physical retail presence. Majid Al Futtaim framed the decision as a strategic reset: the space would be redeployed as part of a $1.3 billion overhaul reimagining the mall as a next-generation lifestyle destination with a sharper luxury proposition.
The closure also came amid regional turmoil — after U.S.-Israeli strikes on Iran in late February, Dubai hotel occupancy fell from 84.7% in February to 33.1% in March, and tourists account for an estimated 60% of UAE luxury spending.
The company said THAT's footprint would be redeployed to support the mall's new vision, and that the concept would continue as a digital-first business.
Why it happened
- A 150-label multibrand store is squeezed from both sides — brands sell direct and online, and the concept needed the footfall volume that a luxury wing no longer delivered.
- The regional shock was severe: tourism drives roughly 60% of UAE luxury spending, and Dubai hotel occupancy more than halved between February and March 2026 after the strikes on Iran.
- The store's owner was also the mall operator — when the $1.3 billion redevelopment needed the 48,000 sq ft, the concept occupying it was always the most convenient thing to remove.
The lesson
A homegrown concept store inside your own mall is an experiment with an expiry date: when the landlord is also the parent, the store survives only while it fits the parent's next plan.
Aftermath
THAT Concept Store closed its final location at Mall of the Emirates in 2026, ending its physical presence and moving to a digital-first model. Majid Al Futtaim redeployed the space as part of a $1.3 billion overhaul of the mall, which plans roughly 100 new stores and an elevated luxury footprint.
Sources
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