Jarir’s Gulf sales up 29%, ops unaffected by shipping disruptions: Chairman

This growth was supported by the availability of inventory at Jarir in Gulf markets, at a time when some countries faced difficulties or delays in direct imports due to shipping disruptions, Alagil said in an interview with Argaam.

He explained that the company’s ability to provide products from nearby and ready inventory helped it meet demand and benefit from the opportunities available in those markets, which reflected positively on sales.

The second-quarter profit growth followed improved sales mix, higher sales of school supplies and books, and lower discounts compared with the same period of last year, amid shortages of some products and inventory in the market, the Chairman said.

The increase in the number of stores also supported the company’s performance, he added, noting that Jarir opened six new outlets during the current year (five in Saudi Arabia and one in Kuwait). The retailer also improved customer online shopping experience and developed sales channels.

“We were not materially affected by geopolitical developments and shipping disruptions, as we moved early to reroute shipments through the Red Sea. In some cases, we also arranged to receive goods from other regions and routes, ensuring continued product availability and uninterrupted operations,” Alagil said.

Sales related to subscription services and programs supporting sales continued to grow, with their contribution exceeding 30% of the phones segment. He noted that these services continue to grow and support the segment’s sales.

Smartphones were among the main drivers of sales growth, but the company faced shortage of some devices limiting quantities below desired levels, Alagil noted.

He also said that prices of some devices increased with the rapid development of products supported by AI technologies and rising demand for them, while available quantities remain below market needs.

Alagil noted that smartphone inventory turnover remains high, emphasizing that lower sales in some periods are not due to weak demand, but insufficient stock available.

Seasonality makes QoQ comparisons less meaningful

Regarding quarter-on-quarter (QoQ) comparison of Q2 2026, Alagil said that Jarir’s business is seasonal, and that each quarter is affected by different factors, including the back-to-school season, summer holidays, and other sales periods.

Comparison with the previous quarter is not always meaningful for the company’s business because the nature of demand and sales seasons differs from one quarter to another. The first quarter may include part of the school season, while sales drivers change in other quarters, he added.

Alagil also noted that the company’s profits are not distributed evenly throughout the year because of seasonal variations, and therefore direct quarterly comparisons may not accurately reflect operational performance trends.

Online store grows 11%, with 32% contribution to total sales

Alagil said that online sales grew by 11%, with their contribution exceeding 32% of the company’s total sales.

The online store’s performance was excellent, as its continued growth reflects the company’s success in improving the customer experience and expanding the range of products and services available through the digital channel, he added.

“We are working to increase the product offering through the online store and continuously add new categories. During the past year, we added musical instruments, and recently added travel bags,” he said.

Alagil also said that expanding the product offering by adding new categories, including travel bags and children’s toys, is one of the pillars of the company’s strategy to enhance online store growth and increase its contribution to total sales.

Using AI to increase sales

Alagil said that Jarir is increasing its use of artificial intelligence technologies in its operations, whether through new products supported by these technologies or by employing AI to improve the customer experience.

“We aim to use AI more extensively in personalizing offers and recommendations for each customer, which would contribute to increasing sales and improving marketing efficiency,” he added.

He noted that the initiatives also include developing products and services, increasing the offering through the online store, improving the shopping experience, and working to reduce costs and raise operational efficiency.

Old-device trade-in offers

Jarir continues to improve its old-device trade-in offers as part of initiatives aimed at encouraging customers to purchase new devices and supporting sales of the electronics and phones segment, according to Alagil.

He added that the company will continue adding new products and categories to the online store, in addition to developing offers and services related to modern devices and technologies.

Continued growth in Q3 expected

Alagil expects the company’s business to continue growing in the third quarter, supported by the back-to-school season, as well as current initiatives to develop products, expand offerings, and improve digital channels.

The company’s plans include continuing efforts to reduce costs and improve efficiency, alongside expansion in products and services and opening new stores, he added.

According to data available with Argaam, Jarir’s profit rose to SAR 489 million by the end of H1 2026, compared to SAR 414.5 million during the same period of 2025. Meanwhile, the second-quarter profit amounted to SAR 235.6 million, a growth of 19% YoY.

The total number of Jarir’s showrooms amounted to 78 locally and abroad, as follows: 67 showrooms inside Saudi Arabia, and 11 showrooms abroad (four in Qatar, one in Sharjah, five in Kuwait, and one in Bahrain)