Majid Al Futtaim Retail eyes 6 new Carrefour stores in Saudi Arabia by 2021-end: CEO

Hani Weiss, CEO of Majid Al Futtaim Retail

Majid Al Futtaim Retail, the exclusive franchisee to operate Carrefour in the Middle East, operates 21 Carrefour stores in Saudi Arabia and plans to launch six new stores (three hypermarkets and supermarkets each) by year-end, chief executive officer (CEO) Hani Weiss told Argaam in an exclusive.

Carrefour is present in nine Saudi cities, namely Riyadh, Jeddah, Madinah, Makkah, Dammam, Ahsa, Tabuk, Al-Jouf and Buraidah. The company is planning to open new stores in Al-Qatif, Khamis Mushait and Najran.

The company holds a market share of less than 10% in the retail sector, as it entered Saudi Arabia only in 2004, Weiss said, noting that e-commerce will have a larger share in the retail sector.

Carrefour reported the highest e-commerce sales in the Kingdom, which rose 285% in 2020. Accordingly, the company was motivated to raise its e-commerce capacity and open its “dark store” - an online shopping center - in Riyadh.

The Kingdom is the largest e-commerce market in Majid Al Futtaim’s portfolio, compared to other countries where it operates, the CEO said, expecting the growth in the e-commerce industry to double going forward.

The company recently launched several projects in the Kingdom, including Mall of Saudi, and focuses on expansions, Weiss said.

In addition, Majid Al Futtaim Retail is close to opening four or five automated centers in Riyadh and is also looking for other locations in the Eastern Province and Dammam to reach all customers.

“Boosting investment in e-commerce is the real opportunity for Carrefour,” he noted.

Saudi Vision 2030 helped enhance technology and allowed investors, such as Majid Al Futtaim, to develop a special technology strategy, to provide more opportunities for citizens.

Carrefour branches span a total area of almost 163,000 square meters, with an occupancy area of 105,000 square meters, Weiss noted, expecting it to double in the next five years, including e-malls that will be independent and have large areas.

Elsewhere, Carrefour Saudi has no plans in the short term to offer its shares in the Saudi market, Weiss concluded.