Al-Futtaim reviews Cenomi Retail portfolio, may exit unprofitable brands

Wassim Arabi, President of Retail Division of Al-Futtaim Group

Al-Futtaim Group is reviewing Fawaz Abdulaziz Alhokair Co.’s (Cenomi Retail) portfolio, a process that could see it exit unprofitable brands to focus on higher-margin labels and boost long-term profitability, the group’s Head of Retail, Wassim Arabi, told Al-Eqtisadiah newspaper.

He said Cenomi Retail's SAR 1.35 billion shareholder loan aims to strengthen the company’s capital structure and competitiveness, improving its financial position, enhancing flexibility to invest in growth, and making it easier to meet obligations.

The funding will also allow Cenomi Retail to channel resources into sustainable growth initiatives, including digital transformation, operational upgrades, and the launch of new stores and brands, Arabi said. This will create broader expansion opportunities in the Saudi market.

Following the deal, Al-Futtaim will focus its Saudi operations on fast-growing consumer segments, supported by Vision 2030, urban expansion, and rising demand for international and experiential brands, he added.

Cenomi Retail, formerly Fawaz Abdulaziz Alhokair & Co., recently disclosed that Al-Futtaim completed a private transaction with selling shareholders—Fawaz, Abdulmajid, and Salman Alhokair, as well as Fas Holding and Fas Real Estate—raising its stake in the company to 49.95%, according to Argaam data.