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BinDawood Holding owns one of the largest private retail chains in Saudi Arabia and operates 70 hypermarkets and supermarkets in major Saudi cities, Ahmad AR. BinDawood, CEO of Danube and BinDawood supermarkets, told Argaam in an exclusive interview.
He added, on the sidelines of the Retail Leaders Circle Summit MENA Region (RLC MENA) in Riyadh, that the group employs 10,000 staff members.
The company posted a remarkable rise in sales, backed by new store additions in 2019.
The Saudi grocery market is expected to rise at a compound annual growth rate (CAGR) of 5.1% over the next 5 years, driven by the social reform initiatives under the Saudi Vision 2030.
The top official added that the company regularly reviews its funding policy and requirements. All financial options are considered in order to position BinDawood Holding to take best advantage of the opportunities offered by the market
Here’s the full interview with Ahmad AR. BinDawood:
Q: How many branches are there of Danube and BinDawood supermarkets and hypermarkets?
A: We have a total of 70 stores within BinDawood Holding. We are considered as one of the major leading private retail operators in Saudi Arabia. We employ a total of 10,000 people.
Q: What is Danube’s market share in the Saudi primary retail market?
A: The retail (grocery) market is divided into two segments: mid-market and premium. The majority of the competition can be found in the mid-market, with operators such as Carrefour, Othaim, Panda and Al Raya present alongside BinDawood. The premium market is only catered by Tamimi and Danube. We are the only retailer that covers the full spectrum.
Q: What about Danube and BinDawood’s sales in 2019 compared to the previous year?
A: As a private group, our financial statements are not disclosed for the public. What we can reveals is sales have increased in-line with our roll-out of new stores. According to a Euromonitor report, the Saudi grocery market is expected to rise at a compound annual growth rate (CAGR) of 5.1% over the next 5 years, driven by the social reform initiatives under the Saudi Vision 2030.
Q: How do you evaluate Danube’s e-commerce? And what about your online sales in 2019?
A: Danube Online is the Kingdom’s leading online grocery shopping platform. It also won several awards since its launch in 2017.
Our growth has been incredible and we registered over [2 million] downloads of our app in 2019. Furthermore, we were excited to launch the BinDawood’s App in 2019 and we one of our major objectives in 2020 and beyond is to expand our reach and drive further growth in the two platforms.
Q: What are BinDawood Holding plans to expand its network and tap target markets?
A: We remain committed to the Saudi market and have plans to open new stores regularly across the Kingdom. In January, Danube Hail supermarket was inaugurated, bringing Danube’s best-in-class retail grocery product offering, superior customer service and shopping experience to the residents of Hail.
Q: What are the latest developments in the company's offering on the financial market?
A: Like any well-run private company, we regularly review our funding policy and requirements. All financial options are considered in order to position BinDawood Holding to take best advantage of the opportunities offered by the market.
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