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The performance of Abdullah Al Othaim Markets Co.’s stores overall reflects the company’s strategic plans and vision for sales growth, profit margin improvement and catering to customer demand, CEO Abdul Aziz Al-Othaim told Argaam in an exclusive.
The company will pursue its expansion policy to boost performance. It will also develop the existing branches and enhance the quality of services.
Moreover, Al Othaim will open two branches in Riyadh, to expand its branch network to 246 across the Kingdom.
Ahead of the recent value-added tax (VAT) hike, customers flocked to purchasing, which lead to increased sales.
“VAT will not have a significant impact in the short term, amid increased consumer awareness and mature consumption pattern, as the Kingdom had earlier imposed a 5% VAT and an excise tax,” Al Othaim said.
The Saudi retailer leases stores and commercial malls, to generate a secondary return from its investments in the real estate sector. Meanwhile, the company’s real estate business was pressured by the COVID-19 pandemic and closures during the lockdown period.
Al Othaim offered discounts to tenants amid these closures, which weighed negatively on the performance of its affiliates and associates.
However, the company benefited from the Saudi government initiatives, which offset some costs, the top official concluded.
Al Othaim reported a net profit after Zakat and tax of SAR 224.8 million for the first half of 2020, up 77% from SAR 127.1 million a year earlier, Argaam reported.
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