Strong demand drives Q4 sales without branch expansion: SACO CEO

Sales grew by 17% without expanding the number of branches, while the customer base increased by 11%, reflecting the success of the transformation plan launched in March 2023.

In an interview with Argaam, Bdeir noted that SACO operates 33 branches across 20 cities in Saudi Arabia. The company is currently prioritizing the development of its e-commerce platform and enhancing customer service while also exploring new investment opportunities to open additional locations and planning renovations for some existing branches.

Commenting on the financial results, Bdeir explained that the return to profitability in Q4 2023, after more than three years, was driven by a 17% increase in sales compared to Q4 2023, despite not opening new branches.

Additionally, the gross income margin improved by 6.3 percentage points, resulting in a SAR 21 million (95%) increase in gross income. A 21% (SAR 8 million) reduction in general and administrative expenses also supported profitability.

Bdeir highlighted that the key factors driving the company’s return to profitability align with SACO’s transformation plan, launched in March 2023. These include signing new supplier contracts that reduced the cost of sales, enabling SACO to offer competitive prices in its stores and online platforms, as well as improvements in the gross profit margin.

The company also cleared old inventory and introduced over 20,000 new high-quality products with a diverse selection. Additionally, SACO implemented training and incentive programs for employees, enhancing customer experience and driving sales growth.

The CEO noted that most product categories experienced sales growth, boosted by the launch of new products in the second half of 2024. The company also introduced new sections and categories, including home furnishings, bags, school supplies, toys, televisions, air conditioners, and more, all of which received strong customer demand.

The top revenue-generating categories in Q4 included electrical appliances, household tools, indoor and outdoor furniture, gardening supplies, and hardware and tools.

Bdeir emphasized that SACO is a leading destination for seasonal goods in Saudi Arabia, particularly for outdoor seating, heaters, outdoor air conditioners, camping, and gardening tools. The company also launched new products and brands that attracted customer interest, supported by targeted marketing campaigns.

Regarding e-commerce performance, SACO’s digital sales grew by 65% in 2024 compared to 2023 and surged by 107% in Q4 2024 compared to the same period last year, reflecting continued strong growth in this segment.

As for Q1 2025 expectations, Bdeir stated that the company remains on track with its transformation plan, with financial results to be announced in due course.

He added that SACO continues to introduce new products from global markets, expecting them to be well-received by customers due to their variety, quality, and competitive pricing. The company is also committed to further developing its digital platforms and applications to enhance the online shopping experience.