Saudi Arabia’s leading franchise retailer Fawaz Abdulaziz Alhokair Group (Alhokair) signed an agreement with European electronic and cultural retailer, Fnac Darty to further expand its portfolio into consumer electronics and other categories in the Kingdom.
As part of the franchise deal, Alhokair will open the first Fnac Darty store in Saudi Arabia in 2022, which will showcase multi-brand consumer electronics, household appliances, stationery, books, cultural and lifestyle products, and value-added services, the company said in a statement.
“This strategic partnership with Fnac Darty is perfectly in line with our objective to diversify our brand portfolio and drive sustainable growth. The European retailer’s strategic focus on building a strong customer base with evolving experiences around electronics, multimedia and lifestyle categories, is a major milestone in Alhokair’s journey to becoming the lifestyle retail partner of choice in Saudi Arabia.”
The deal will enable Alhokair to tap into the Kingdom’s surging demand for electronics fueled by businesses and educational institutions offering flexible remote working and learning solutions.
Alhokair is highly focusing on introducing brands that offer customers superior services both online and offline. As part of its strategy in the country, the retailer aims to provide customers with a wider range of brands that enable flexible and omnichannel shopping experiences.
“The partnership will provide a premium offer of multimedia and cultural products and qualitative store shopping experience, thanks to a dedicated expert team. This deal is a great opportunity for our Group, for our partner and future customers,” Enrique Martinez, chief executive of Fnac Darty, said.
Fnac Darty has 908 international stores and 346 franchises. Last year, the company reported revenue of over $8.9 billion, with online sales accounting for 31 percent of this.
Alhokair operates more than 1,800 retail stores across 12 countries and its portfolio comprises more than 90 international and local brands in fashion, beauty, sports, multimedia, and food and beverage.
Last month, Alhokair and mall operator Arabian Centres Company announced plans to acquire a combined 51 percent stake in Vogacloset, a UK-based eCommerce platform with 12 million users in the Middle East.