BinDawood Holding CEO: Retail market faces some challenges, focus on domestic expansion

Ahmad Abdulrazzaq BinDawood, CEO of BinDawood Holding Co., said the Saudi retail market is facing some challenges, which led the company to reconsider its expansion plans in the Middle East and GCC region.

“Overseas expansion will now be pursued through the franchise model, with a renewed focus on the Saudi market through branch openings,” he added in an interview with Argaam on the sidelines of the Capital Markets Forum in Hong Kong.

The CEO indicated that the company's foray into the international scene was in Bahrain, followed by an agreement with a Qatar-based company to open eight branches. He also stressed that the upcoming expansion will be local to support the company’s core business within the Kingdom.

The company, along with its strategic partners, earlier announced its intention to invest SAR 1.5 billion in online infrastructure and expansion. It also aims to open 500 stores with sizes ranging from 50 to 800 square meters. These plans have already begun. The company has also entered the manufacturing sector to produce packaged foods and supply them to branches under the BinDawood and Danube brands, as well as Dash stores, according to BinDawood.

The CEO also stated that the acquisition of Zahret Al Rawdah Pharmacy yielded positive results in terms of sales per square meter and customer turnout. “It also introduced a new category of products that were previously unavailable. Five new pharmacies were openedF in the first week of the acquisition inside BinDawood stores in Makkah and Madinah. The related impact of this acquisition is likely to appear in the coming quarters,” he said.

Furthermore, BinDawood Holding aims to open 70 to 80 pharmacies over the next two years within BinDawood and Danube stores, as well as some standalone locations. Some food items will also be added to the pharmacies, as a first in Saudi Arabia where pharmaceutical and food products are sold under one roof due to changes in health regulations, according to the top executive.

He also noted that the acquisition of Toy Triangle Co. aims to restructure the Jameera Co. and merge it with the Toy Triangle brands, which will position the company as one of the largest toy distributors in the Kingdom.

As for the financial performance of Toy Triangle, the CEO noted that the company is currently profitable and well-known in the toy sector, as it owns strong brands that control 40-50% of toy store spaces.

According to Argaam’s data, BinDawood Holding plans to open 15 new stores within the Kingdom in 2025. These include seven Danube stores, six BinDawood stores, and two stores under the BinDawood Holding brand.