Kuwait’s Alshaya scales down operations in Egypt amid currency depreciation, inflation

Logo of Alshaya Group

Kuwait’s Alshaya Group decided to scale down its operations in Egypt, citing the devaluation of the currency, exchange rate pressures, and elevated inflation. 

According to Asharq News, the company communicated this decision in a message to employees of the stores earmarked for closure, attributing the move to the economic situation over the past three years and the challenges its business faced in Egypt. 

The Debenhams brand will be withdrawn from Egypt, with both physical stores and e-commerce activities set to close by the end of February 2024. 

An executive from Alshaya Egypt, cited by Asharq, disclosed that the group will be terminating the employment of about 375 employees in Egypt, out of a total workforce of 2,000 in the country. This decision is part of a broader restructuring effort, which includes the closure of five brands, a reduction in three brand branches, and the shutdown of two online sales platforms, out of a total of 12 brands operated by the group in Egypt. 

Founded in Kuwait in 1890, Alshaya Group manages a diverse portfolio of retail brands including Starbucks, H&M, Mothercare, Debenhams, American Eagle Outfitters, B.F. Chang's, The Cheesecake Factory, The Body Shop, MAC, Victoria's Secret, Boots, Pottery Barn, and KidZania, according to data available with Argaam.