SACO enters growth phase with positive results, says CEO

Abdel-Salam Bdeir, CEO of Saudi Company for Hardware (SACO) 

Saudi Company for Hardware (SACO) is undergoing a strategic transformation that began in March 2023 and has now entered the growth phase, CEO Abdel-Salam Bdeir said.

In an interview with Argaam on the sidelines of the Retail Leaders Circle Global Forum, Bdeir noted that SACO started 2024 with a decline in sales but successfully recovered, achieving growth during the first nine months of the year without the need to open new branches.

While most retail companies in Saudi Arabia expanded by launching new outlets in 2024, SACO boosted sales through product development and expansion of customer offerings.

Bdeir emphasized that the growth in the retail sector was largely driven by the rapid expansion of e-commerce, supported by both local companies and global players such as Amazon, Noon, SHEIN, and Trendyol.

He said that studies indicate sustained growth in e-commerce, adding that SACO is capitalizing on this trend by diversifying its product range. The company has entered new segments, such as high-quality home furnishings, which have seen strong demand.

Additionally, SACO has expanded into large home appliances, including air conditioners, televisions, and washing machines.

The furniture segment, particularly indoor furnishings, has been a key growth driver. Sales in this category surged by 70% in December 2024 compared to the previous month, the CEO said, indicating that Saudi Arabia’s indoor furniture market is valued at SAR 35 billion annually.

Discussing SACO’s strategy, Bdeir said that the company is prioritizing e-commerce by enhancing its website and mobile app, alongside selective and strategic expansion of physical stores.

He clarified that SACO has no specific acquisition plan but remains open to opportunities that align with its strategic vision.

On the financial front, Bdeir noted that SACO has not yet announced its fourth-quarter 2024 results, but is satisfied with its overall performance.

The company reported losses of SAR 69 million in 2023 and SAR 142 million in 2022. However, SACO has successfully achieved growth in operating profit and revenue since launching its transformation plan in March 2023.

E-commerce remains a key growth driver, with SACO’s online sales increasing by 60% in 2024 and surging by 90% in January 2025.

Bdeir expects this momentum to continue throughout the year.