Al Othaim reports suspected discount store violations to regulators

Abdulmalik Alothaim, Acting CEO of Abdullah Al Othaim Markets Co.

Abdulmalik Alothaim, Acting CEO of Abdullah Al Othaim Markets Co., said the company had identified practices at some discount stores in Saudi Arabia that it believes undermine fair competition and had reported them to regulatory authorities, providing supporting observations and evidence.

Speaking on the Halala podcast, hosted by Al Eqtisadiah newspaper, Alothaim said the practices included selling products of unknown origin, running what he described as fake and misleading promotions, offering goods nearing their expiry dates, and pricing practices that raise concerns about below-cost selling and market dumping.

Some products may also originate from unapproved countries or unlicensed factories, he said, citing cases involving the sale of refilled bottled water and products from unapproved suppliers.

Alothaim said some products sold at exceptionally low prices may be nearing the end of their shelf life, urging consumers to look beyond prices and pay attention to the nature and quality of promotional offers and products.

He stressed that low prices do not in themselves constitute a violation, adding that price competition and affordable products benefit consumers as long as retailers comply with applicable regulations and standards.

He also clarified that the observations did not apply to all discount stores.

The emergence of discount retailers is not new but reflects successive waves in the market, Alothaim said, adding that competition is a natural feature of the retail sector.