Alsaif Gallery mulls expansion in GCC, 70% quarterly dividends: CEO

Logo of Alsaif Gallery

Al-Saif Stores for Development & Investment Co. (Alsaif Gallery) plans to open at least 27 stores in Saudi Arabia and GCC region over the next four years, CEO Mohammed Alsaif told Argaam.

He added that investors' turnout for the IPO encourages the company to expand and open new stores every year, in addition to exploring new investment opportunities.

The company's profitability and cash flows support the distribution of 60-70% cash dividends on a quarterly basis, the top executive said.

"Large part of H2 2022 earnings will be distributed to shareholders, as the board of directors declared a cash dividend at SAR 1 per share for the third quarter of 2022," Alsaif said.

The firm has a strong financial position, as it recorded robust profit margins and cash flows. In addition, it paid off all loans in 2022.

Further, Alsaif Gallery worked on expanding its business through diversifying and developing products as well as distributing its stores across the Kingdom. The company has 61 stores, with total area of a store ranging between 1,000 and 3,000 square meters.

The firm operates in home utensils and appliances retails sectors, dominating 27% of small home appliances, and 39% of kitchenware and serveware in 2021. 

Elsewhere, the CEO said Alsaif Gallery proved its ability to gain customer satisfaction over the past years, and this satisfaction was reflected in the growth of the company and the number of store visitors, as more than 3.5 million subscribers were registered in the loyalty program (Testahel).

He pointed out that Alsaif Gallery has strong profit margins, which is rare for retail companies, as the firm managed successfully, through its experience in this field, to create a unique and distinctive business model. This model depends on partnership with factories working its trademarks.

In addition, the company succeeded, through its multiple marketing channels, in introducing its products and multiple brands.

The firm will continue to work according to its strategy, which aims to expand the store network locally and abroad, diversify product portfolio, and increase online sales, the CEO confirmed.