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Logo of Abdullah Al Othaim Markets Co.
Abdullah Al Othaim Markets Co.'s market share of the organized food retail stores does not exceed 30%, while its market share of groceries amounted to 70%, Chairman Abdullah Al Othaim told Rotana Khalijia TV.
The number of grocery stores will reduce in the future compared to the regular market chains, Al Othaim said, attributing this potential decline to the new regulations such as providing points of sales and Saudization.
He pointed out that the numbers of grocery stores have already declined as they are not able to compete under such regulations.
The majority of branches are rented, as leased land helps the company’s expansion plan. However, the firm purchases land plots in some cases to build a complex, which it sells to re-lease.
Commenting on the pro and cons of applications on smart devices, the chairman said the retail stores are still few and their services only cover a small part of the market, indicating only 30% of the market was covered.
Elsewhere, he said Al Othaim Real Estate Investment and Development Co. (Othaim Mall) is set to list its shares, as per the governance procedures and separation of ownership from the company's management. The chairman added that the listing aims to avoid the issues related to heirs in family businesses.
Othaim Mall is a unit of Al Othaim Holding Co., which owns a stake in Tadawul-listed Al Othaim Markets.
Othaim Mall is specialized in constructing and operating large commercial malls. It owns eight malls, namely Othaim Mall Rabwa in Riyadh, Othaim Mall Khurais in Riyadh, Othaim Mall Buraidah, Othaim Mall Unaizah, Othaim Mall Dammam, Othaim Mall Ahsa, Grand Mall Hail and Arar Mall.
In July 2020, Othaim Mall was said to be planning an initial public offering (IPO), Argaam reported.
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