Saudi Arabia’s retail market has ‘potential’ to grow, says Al-Othaim CEO

Saudi Arabia’s retail sector has great potential to grow, particularly the supermarket and hypermarkets sector, said Yousef Al-Gafari, chief executive of Abdullah Al-Othaim Markets.  

Al-Gafari added in an interview with CNBC Arabiya that the company's share of the total retail sector ranges between two to three percent. 

Al-Othaim’s market share of retails companies is between 15 to 17 percent, he added. 

The company focuses on the central region in Saudi Arabia, which is where it first started. Al-Gafari pointed out that Al-Othaim also plans to target areas with high purchasing power. 

"Our plan is to exist in all regions of Saudi Arabia, without looking to expand abroad," he said. 

Al-Gafari also pointed out that the Saudi market is not ready yet to adjust to online shopping, due to operational and accountancy constraints. 

Moreover, Al-Gafari said Al-Othaim markets is currently not operating in Egypt, despite the fact that the company was founded in the North African country. However, if Al-Othaim decides to operate in Egypt, they would be ready, he added.

"Our priority now is to expand in the Kingdom," Al-Gafari said. 

While discussing the drop in oil prices, he said the decline hasn't had an impact on the company’s activities, especially since Al-Othaim is a “consumer-focused” company.