We inform you that on this website we use our own and third-party cookies to collect information about its use, improve our services and, where appropriate, display advertising by analyzing your browsing habits. You can expressly accept its use by pressing the "ACCEPT" button or configure and select the cookies you want to accept or reject in the settings. You can also get more information about our cookie policy here.

The global fashion business journal

Aug 7, 202010:52am

Alhokair closes stores but leverages Inditex

The Saudi group, which started off with losses in the second quarter of the year (closed last September), is restructuring its network of stores and severing ties with brands. 

Feb 26, 2020 — 8:33am
P. R. D. / I. P. G
Save

Saudi Arabia giant Alhokair shuts down stores but leverages Inditex

 

 

Alhokair leverages Inditex amid business restructuring. The Saudi group, one of the largest international fashion partners in the Middle East, has executed a series of openings of different concepts of the Spanish giant in Saudi Arabia while moving forward with the global restructuring of its network of stores.

 

Alhokair launched Zara, Massimo Dutti, Bershka, Stradivarius, and Oysho stores over the past few weeks. The five Inditex’s businesses have opened a store in the Nakheel shopping mall, in Dammam, in Saudi Arabia.

 

In parallel, the group has just launched a new Zara reference store in Saudi Arabia. The point of sale is located on U Walk, in Riyadh, and has 3,200 square meters of surface. At the same time, Alhokair has reopened Zara’s doors in Mall of Arabia, in Jeddah, following a huge renovation.

 

Hassan Slim is the director leading the business of Inditex, a position he has been occupying since January. Prior to joining Alhokair, the executive worked for a competitor, Azadea Group, where he held the position of director of Massimo Dutti.

 

 

 

 

Over the past few quarters, Alhokair has been involved in a process of closing and reorganizing its business to cope with the evolution of its results. In the second quarter of the year (completed in September of last year), the company recorded losses of 26.7 million Saudi riyals (7.1 million dollars), compared to the benefit of 8.9 million Saudi riyals (2.4 million dollars) of the same period of the previous year.

 

According to data provided by the company itself, Alhokair is the largest franchisee of international companies in Saudi Arabia, the Middle East, North Africa, Central Asia, and the Caucasus. The group has a network of 1,750 stores in thirteen countries, with more than 10,000 employees. 

 

The group works for around eighty brands, including women’s, men’s, children’s fashion or footwear. Alhokair’s partners include, in addition to Inditex, the American giant Gap, Mango, Nine West, Jennyfer, Desigual or Celio. 

 

In August last year, the group finalized its distribution agreement in Saudi Arabia with Marks & Spencer, although it maintained stores in Armenia, Georgia, and Kazakhstan. The company also highlighted the breakdown of other similar agreements, although it did not specify which.

Advertising
Participation rules

info@themds.com

 

Validation policy for comments: 

 
MDS does not perform prior verification for the publication of comments. However, to prevent anonymous comments from affecting the rights of third parties without the ability to reply, all comments require a valid email address, which won’t be visible or shared.
 
Enter your name and email address to be able to comment on this news: once you click on the link you will find within your verification email, your comment will be published.

0 comments — Be the first to comment
...