The Fawaz Alhokair Group has announced its intention to launch a further seven fashion retail franchises in the Saudi Arabian market in the next 12 months, and open over 150 stores. This follows the opening of 175 new stores last year, and demonstrates the momentum of the fashion retail business within the Group.
The current expansion in the Fashion Retail division means that the leading fashion retailer has reached a major milestone passing a 50% share of the Kingdom’s fashion retail business. With a turnover exceeding US$400 million, the company trades almost 50 franchised brands across a network of 650 stores across the Kingdom supported by 3,500 employees. With these credentials it can rightfully claim to be the King of fashion retail in Saudi Arabia.
International brands in its portfolio include Zara, Massimo Dutti, Promod, Adams, Aldo and Monsoon. It has a strong product offering across all major segments like womenswear, menswear, kids & teens fashion, footwear and accessories to name a few. Its stores sold more than 15 million items in 2005/06 and served more than 12 million customers.
Dr Abdulmajeed Alhokair, CEO of Fashion Retail, Alhokair Group, said: “Alhokair has positioned itself to take advantage of the huge boom in fashion retail across the Kingdom, which is being driven by the “buy-now, wear-now” attitude of consumers.
He added by saying: “Alhokair’s market dominance within the fashion industry has been driven by a three-way management approach involving the consolidation of key product areas, domination of a growing mass market sector and giving the Saudi consumer world class quality, service and value. It is a winning formula that is serving us well.”
A 2005 report from the internationally renowned market intelligence agency Euromonitor further supports Alhokair’s dominance. It shows Alhokair having a 48.5% share of the women’s wear category and a 50% category share overall.
Alhokair’s fashion retail dominance is a home-grown success story that has taken just sixteen years. Dr Abdulmajeed Alhokair explained that this success has come from developing a world-class approach to partnership.
“Alhokair has always aimed at attracting world famous brands to Saudi Arabia. Our success in encouraging these brands to step into this market is based on us offering a world class doorway through which they can take advantage of this country’s fashion retail opportunity. Our perseverance has paid off, especially over the last couple of years, and it is an approach that will continue to drive growth in our business well in to the future.”
The role of the Fawaz Alhokair Group in Saudi Arabian industry was recognized recently by the OECD, which awarded the company the “2005 Investor of the Year” award for its outstanding contribution towards job creation. In 2005, the Group companies generated close to 4,000 jobs.
