Latest news with #RetailLeadersCircleGlobalForum2025
Argaam
11-02-2025
- Business
- Argaam
Apparel Group plans 150 new stores in Saudi Arabia in 2025: CEO
Apparel Group plans to open 150 new stores this year, reaching 1,000 stores in Saudi Arabia by the end of next year, according to CEO Neeraj Teckchandani. Speaking to Argaam at the Retail Leaders Circle Global Forum 2025, he said the group is among the region's top five retailers, with around 750 stores in Saudi Arabia. The company signed 28 new brand agreements last year and acquired brand rights from other operators, expecting strong growth over the next three to five years. Saudi Arabia generates 35–36% of the group's Gulf revenue, a share Teckchandani expects to rise to 55–60% in three years, driven by expansion and investment in digital and logistics infrastructure. Founded in the Middle East in 1996, Apparel Group now runs over 2,300 stores in 14 countries, representing 85 global brands and employing more than 25,000 people. The company focuses on competitive pricing and plans to double its private label brand, R&B, from 50 to 100 stores this year. Higher inflation has intensified competition and squeezed profit margins but also created new opportunities in value-focused retail. Teckchandani said the group's digital platform is seeing strong growth alongside brand websites, strengthening its omnichannel strategy. The company is also investing in distribution centers and training programs to develop local talent through its Retail Academy.
Arab News
05-02-2025
- Business
- Arab News
Chalhoub Group expands Saudi operations with new fulfillment hub and store
RIYADH: Chalhoub Group is strengthening its presence in Saudi Arabia by launching a regional fulfillment hub in Riyadh and inaugurating a new luxury store in Solitaire Mall. The company's latest investments underscore its commitment to the Kingdom's evolving retail landscape, in line with its long-term expansion strategy. The new fulfillment center, located in the Riyadh free zone near King Khalid International Airport, is designed to boost the company's e-commerce and distribution operations, serving Saudi Arabia and the broader region. In an interview with Arab News during the Retail Leaders Circle Global Forum 2025 in Riyadh, Patrick Chalhoub, executive chairman at Chalhoub Group, highlighted the facility's strategic role. 'It's a fulfillment center, which is aiming to really service both our digital and e-commerce drive, our distribution in Saudi Arabia but also beyond Saudi Arabia from Riyadh, gradually, to be really a hub of distribution,' he said. The hub is expected to process up to 100 million luxury products at full capacity, leveraging advanced technology to optimize logistics and improve delivery speed. 'The aim, like in e-commerce, is to be able to fulfill in Riyadh within two hours, in Saudi Arabia within 24 hours, outside Saudi Arabia in less than three days,' Chalhoub stated. 'This will be and is the heart of the market, so it's better to be based in the heart of the market and not be based outside and servicing the market,' he remarked, referring to the Kingdom as the center of luxury retail. Chalhoub Group has been present in the Saudi market since 1959 and has witnessed significant policy and economic shifts over the decades, the executive chairman highlighted. The company now employs approximately 5,000 people in the Kingdom, with 78 percent of its workforce being Saudi nationals and 74 percent women. As part of its retail expansion, Chalhoub Group is also set to open a new store in Solitaire Mall in Riyadh on Feb. 12. The store is designed to deliver an enhanced shopping experience, reflecting the company's focus on innovation in retail. Chalhoub highlighted that consumer behavior in the Middle East differs significantly from other regions, driven by cultural and social dynamics. Unlike Western markets, where individual preferences often dictate shopping trends, the Middle East places a strong emphasis on family-oriented experiences. Human connection is central in shaping commerce, with relationships and social interactions deeply influencing purchasing decisions. He underlined that while some of these characteristics can also be found in regions like Latin America and parts of Asia, they are far less prevalent in Western markets. Additionally, the retail landscape within Saudi Arabia itself is highly diverse, varying by region. Consumer preferences in the western, central, and eastern parts of the Kingdom are distinct, reflecting localized tastes and traditions. Chalhoub pointed out that Saudi Arabia's rapidly growing young population is another key driver of change. With high birth rates and large families, the country's demographics present significant opportunities for brands. Increasing education levels and digital connectivity are also shaping a new generation of more knowledgeable, globally aware, and tech-savvy consumers. He emphasized that this evolving demographic is one of the most valuable assets for the Kingdom and the broader Gulf region. Chalhoub provided insights into the global luxury market, emphasizing the Middle East's growing but relatively small share. The worldwide luxury market — including beauty, fashion, jewelry, watches, and gift items — is valued at approximately $380 billion, with the Middle East accounting for $12.5 billion, or around 3 percent to 4 percent of the total. However, for successful brands, the region can represent between 5 percent and 7 percent of their global sales, highlighting its potential for further growth. Saudi Arabia's luxury market is currently valued at nearly $3.5 billion, making up less than 1 percent of the global luxury sector. In comparison, the UAE, driven by tourism and local demand, boasts a luxury market exceeding $7 billion to $8 billion. Chalhoub also noted that despite their smaller populations, countries like Qatar and Kuwait have well-established luxury fashion markets, in some cases surpassing the Kingdom's in terms of spending per capita. Given Saudi Arabia's population of over 33 million, compared to Qatar's 2 million and Kuwait's 5 million, he suggested there is room for significant market expansion in the Kingdom.
Arab News
05-02-2025
- Business
- Arab News
Saudi retailer Panda plans over 20 store openings in 2025, says COO
RIYADH: Saudi Arabia's Panda Retail Co. is set to open more than 20 new stores in 2025, maintaining its pace of expansion from the previous year, according to the company's chief operating officer. Speaking to Arab News at the Retail Leaders Circle Global Forum 2025 in Riyadh, Abdullah Al-Sabban said the company's focus this year will be on expanding within Saudi Arabia, particularly in Riyadh and remote areas. Panda's expansion supports its goal of sustainable retail growth through innovation while highlighting the resilience of Saudi Arabia's retail sector, which recorded SR37.4 billion ($9.97 billion) in sales in the third quarter of 2024 despite global economic challenges. Retail sales in the Kingdom are forecast to reach $161.4 billion by 2028, while the e-commerce sector is projected to exceed $13.2 billion by 2025, according to data platform Statista. 'Our theme for this year is 'expanovation.' Expanding the sites, stores, and locations is very important. But we're more focused on Saudi Arabia right now, more focused on Riyadh, and more focused on remote areas. We want to make sure that everybody deserves to have a Panda experience across the Kingdom,' Al-Sabban said. Self-funded growth Al-Sabban clarified that the company does not require external funding for its current expansion plans. 'When you're talking about 20 stores a year, that's not an area where you need to go and find funding and support,' he said. 'We want to ensure sustainable growth. We want to make sure we have the right number and continue growing at the same trend that we've been growing over the last year or two.' He noted that securing funding would only be necessary if the company aimed to double in size. 'Today, we're running at 200 plus stores. If you told me I want to grow to 400 in a year, then yes, we need to get a huge amount of money. But I think it has to be organic growth. You can't just go and expand because if we expand all our stores, we also need to expand our supply chain, logistics, commercial operations, and trucks,' he said. 'We need to make sure that we don't face failure as we expand in a very dramatic way. So, for now, we are going to keep it smooth and steady to ensure the right sustainability going forward,' he added. Regarding a potential initial public offering, Al-Sabban said Panda is still assessing the right time and approach for such a move. 'IPO is a very critical situation, and it's not easy to answer that, especially since we're part of a bigger group in Savola. There are some thoughts, but we're still discussing, negotiating, and understanding what would be the right time and approach for something like that,' Al-Sabban said. He said that going public is challenging and timing is key, emphasizing the need to ensure that an IPO is the right move for the organization. Market positioning In addition to opening new locations, Panda is investing in upgrading its existing stores through its customer experience and innovation program called CXR. He added: 'We are running both projects simultaneously, ensuring we improve our existing stores while opening new ones. Hopefully, by the end of the year, we will have opened more than 20 stores in new locations.' Addressing competition in the Saudi retail sector, Al-Sabban emphasized Panda's long-standing presence in the market. 'We've been one of the oldest retailers in Saudi Arabia. We've introduced the hypermarket model in Saudi Arabia. So, we've been leading the market. We know our customers,' Al-Sabban said. 'I think this is the challenge that people coming from outside will face — understanding the customer behavior and mindset.' He noted that while international retailers entering Saudi Arabia are targeting specific segments, Panda serves a broad customer base. 'Each outside supermarket coming in is focusing on a certain segment of customers. We are focusing on everybody in Saudi Arabia, from premium all the way to different levels,' Al-Sabban said. He noted that while building brand trust is a challenge for international players, Panda has already earned consumer confidence, with its loyalty program, boasting over 10 million users, reflecting a strong customer base. Al-Sabban said Panda remains committed to maintaining competitive pricing. 'On the other hand, we're working with our suppliers to ensure we have the best prices for our customers. Make sure that we maintain that perception of the lowest price and best quality,' Al-Sabban concluded. 'We want to make sure that we're always known for the best prices, the best quality, and the freshness of our products for our customers.'
