SACO to boost market position by offering new products at competitive prices: CEO

Saudi Company for Hardware (SACO) is expected to continue implementing its turnaround plan and boost its market position, along with sustainable development for its performance CEO Abdel-Salam Bdeir told Argaam in an interview.

 

The company reaffirms its ongoing commitment to providing more high-quality, new products and items at competitive prices from around the world to ensure customer aspirations are consistently met. It also continues to develop its website and app, along with upgrading its delivery and installation services, ensuring a comprehensive and topnotch shopping experience, he added.

 

The results of the strategic turnaround plan announced in March 2023 helped boost sales and total income by providing more than 20,000 new, high-quality items at competitive prices. This was in addition to reducing the cost of sales/items by signing new contracts with more than 100 local suppliers and purchasing directly from foreign factories. This helped SACO reduce the prices of more than 10,000 items, making them more competitive while increasing the profit margin, said the top executive.

 

He clarified that reducing operating and administrative expenses also contributed to the increase in net profits, as the company turned profitable starting from Q4 2024 and during Q1 2025.

 

Meanwhile, revenues from the new divisions, including home furnishings, televisions, air conditioners, refrigerators, washing machines, stationery, toys, travel bags, and massage chairs, which were popular and in demand due to their very competitive prices, had a significant impact on the increase in revenues, according to Bdeir.

 

The CEO also indicated that all of the company's core divisions recorded strong revenue growth in H1 2025, in addition to revenue from new divisions, highlighting that SACO also focused on e-commerce through website and app development and 24-hour delivery in major cities.

 

He added that the contribution of new sales categories reached nearly 50% of revenue, with the company's sales volume reaching SAR 515 million in H1 2025, compared to SAR 469 million during the same period last year.

 

SACO's revenue growth, at a rate higher than that of the retail market in the Kingdom, and without any new branch openings, proves its growing market share, said Bdeir.

 

He pointed out that e-commerce sales saw a growth of more than 85% YoY, representing more than 8% of topline for the first half of 2025, compared to 4.7% of revenues for H1 2024.

 

According to Argaam’s data, SACO reported a net profit of SAR 10.2 million in H1 2025, versus a net loss of SAR 8.5 million in the prior-year period. Q2 net profit stood at SAR 5.1 million.