Fawaz Alhokair to offer microfinance solutions in over 1,000 stores, online platforms: CEO

Logo of Fawaz Abdulaziz Alhokair Co.

Fawaz Abdulaziz Alhokair Co. will offer microfinance solutions for consumers through Fas Finance across its extensive 1,000-store retail network in the Kingdom, Vogacloset and other online platforms, Chief Executive Officer (CEO), Marwan Moukarzel, told Argaam in a phone interview.

The company reported revenue of SAR 55 million from online operations in Q3 2021/22 and over SAR 171 million in the first nine months of the same fiscal year, which represented 4.1% of the retail segment’s total sales.

Alhokair operates up to 1,400 stores, of which 1,050 are located in the Kingdom with more than 300 others across other markets. On the other hand, 139 retail stores were closed as part of the company’s rationalization strategy, Moukarzel said, affirming that this tendency has started to slow down.

“Our brand portfolio has 85 brands that target all consumers and focuses on high-margin sectors. The company opened 63 stores in the first nine months of 2021/22, and is planning other nine stores in the fourth quarter of the same fiscal year, including Flying Tiger and Alo Yoga,” Moukarzel added.

In the food and beverage (F&B) segment, Alhokair has 320 outlets after adding another 39 in 9M 2021/22.

Elsewhere, Moukarzel said Alhokair is planning under the Subway master franchise agreement to add more than 145 new Subway restaurants in the next six years. As many as 20 outlets are expected to be opened within 24 months.

Under the Subway agreement, Alhokair will directly benefit from a network of over 200 stores currently operating in the Kingdom, he concluded.

Fawaz Alhokair swung to a net profit after Zakat and tax of SAR 85.5 million for the nine-month period ended Dec. 31, 2021, against a net loss of SAR 752.9 million in the year-earlier period. The third-quarter net profit stood at SAR 16.9 million, Argaam reported.