SACO's market share rises, turnaround plan lifts profits: CEO

Abdel-Salam Bdeir, CEO Saudi Company for Hardware (SACO) 

Saudi Company for Hardware (SACO) continued to post profits in the first quarter of 2025, following a return to profitability in Q4 2024, driven by adherence to the strategic turnaround plan announced in March 2023, CEO Abdel-Salam Bdeir told Argaam.

The strategy boosted sales and total income by introducing more than 20,000 new high-quality items at competitive prices, Bdeir said in an interview.

He noted that SACO's revenue growth outpaced the overall retail market in the Kingdom, despite maintaining the same number of branches, indicating a growing market share. This growth also reflects the expansion into new product categories not previously offered by the company.

New segments include interior furnishings, TVs, air conditioners, refrigerators, washing machines, stationery, toys, and luggage, Bdeir said.

He added that SACO successfully reduced the cost of sales by securing new supplier contracts, which enabled lower prices for consumers and improved profit margins. The company also achieved continued progress in logistics and reduced general and administrative expenses.

All core business segments posted revenue growth of over 10%, alongside strong performance from new divisions such as electrical appliances, monitors, air conditioners, and indoor furniture, which saw robust customer demand, Bdeir said.

Seasonal sales also improved year-on-year, supported by major promotional and marketing campaigns that helped grow SACO’s customer base by over 15%.

On e-commerce, Bdeir said the company focused on enhancing its website and mobile app and speeding up delivery to within 24 hours in major cities. As a result, online sales surged nearly 90% in Q1 2025, accounting for over 8% of total sales, up from just 2% in the same period a year earlier.

SACO continues to expand by launching new products and categories and remains focused on enhancing e-commerce and customer service. The company now offers delivery to over 3,500 cities and towns across Saudi Arabia. It is also evaluating potential opportunities for new branches and upgrading existing ones to enhance the in-store experience, the CEO added.

“We are on the right track and aligned with the turnaround plan, which includes all the elements needed to drive sustainable performance,” Bdeir said, adding that the company will announce Q2 results in due course.

He concluded by reaffirming SACO’s commitment to offering a wider range of products from global sources, with a focus on variety, quality, and competitive pricing, while continuing to upgrade its digital platforms and improve delivery and installation services.