SACO's operations running smoothly thanks to abundant inventory, says CEO

Saudi Company For Hardware's (SACO) operations are running smoothly thanks to an abundant inventory, Sameer Alhamidi, Chief Executive Officer (CEO) told Argaam.

"SACO will proceed with its expansion plan for 2020, however, it may be amended in line with potential circumstances," said Alhamidi, adding that SACO is having a daily evaluation of the COVID-19 impact on its operations, while prioritizing the safety of its staff.

"Clients can use the company's website, and we will launch a top-notch e-platform in Q2 2020 in cooperation with SAP International," Alhamidi noted.

He attributed the company's lower profitability in 2019 to higher administrative and marketing expenses, increased expenses related to the company's strategy, in addition to the implementation of IFRS 16.

SACO is a well-established firm, with an extensive network and it offered several promotions and discounts to maintain its market share, which weighed on its earnings, Alhamidi further explained.

As for the company's measures to cut expenses and mitigate the negative impact of IFRS16, Alhamidi said that SACO is pursuing a cost-cutting strategy, while maintaining the performance of its stores and offering highest-quality services to clients.

Alhamidi also noted that the company is complying with the IFRS16 standards as there are no other options available.