UK-based multinational DIY and home improvement retailing company, B&Q is stepping into the Saudi Arabia market in light of the increasing number of home ownerships across the Kingdom.
B&Q’s expansion into Saudi Arabia is following a franchise deal between its parent company Kingfisher and the Dubai-based conglomerate Al-Futtaim Group. The news has made the stock of Kingfisher to surge by 4 percent in early London trading last day.
As per the statement from B&Q, the company is expected to launch two 50,000-square-foot stores this year to introduce the DIY franchise to the customers of Saudi Arabia along with the support of an eCommerce proposition.
“This franchise agreement is a great opportunity to expand our business in the attractive Middle Eastern home improvement market with B&Q, one of our most established retail banners,” said the CEO of Kingfisher, Thierry Garnier.
The pandemic has helped the home improvement to gain better than most of the retail sector. Last year, millions of people around the world have increased their budget for home renovations which in turn spurred sales across the DIY retail sector.
The expansion into Saudi Arabia is a significant move for the British DIY retail giant and it comes following the development of a local mortgage market in the Kingdom. The parent company of B&Q stated that the initiative is part of its ‘Powered by Kingfisher’ plan, which aims to grow the business in new territories through partnership agreements.
The first B&Q stores in Saudi Arabia will have a full range of home improvement products. Brands on offer will include Kingfisher’s portfolio, including Erbauer, Magnusson and GoodHome, alongside locally and internationally sourced products
The Al-Futtaim Group operates more than 200 brands across the Middle East, Asia and Africa. It has operated the retail franchises in the Middle East for Marks & Spencer and IKEA.
British multinational DIY and home improvement retailing company, B&Q was initially founded in 1969 as Block & Quayle. The retail chain is a wholly-owned subsidiary of Kingfisher and it offers over 40,000 products across 300 physical stores and online shops.