Saudi Marketing Co. (Farm Superstores) plans to open three new branches in the second half of this year, chief executive Maher Al-Aswad told Argaam in an exclusive interview on Sunday.
The company has already opened five stores by in Riyadh, Dammam, Yanbu, Najran and Al-Kharj in Q2.
Farm Superstores had earlier planned to launch eight stores this year and one Adventures World entertainment center, but it opened an entertainment center in Yanbu and another one in Al-Qurrayat— which was scheduled for opening in 2018.
The CEO told Argaam that the company has no plans to expand overseas, and would rather focus on the local market.
“Many expansion opportunities are available amid regulatory procedures that encourage private sector firms to enhance their services,” he added.
Al-Aswad said that Farm will focus on its core activities, namely foodstuff retailing and entertainment centers along with any potential high-yield investment opportunities.
For Q2 financial results, Al-Aswad attributed a decline of SAR 8.4 million in revenue year-on-year to lower wholesale household items due to the current market conditions and weak demand. A drop in the sales of high-yield household items has impacted gross profit and net profit, he added.
In addition, the company was able to cut operating costs and extra working hours to reduce foreign labor costs. Going forward, it aims to improve labor efficiency and profit margins despite the current market challenges.
Farm Superstores is also looking to increase Saudization rates to replace foreign labor, Al-Aswad added.
The company’s Q2 net profit fell 25 percent YoY to SAR 20.3 million, Argaam reported.
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