Dutch food retailer SPAR International has entered Saudi Arabia in partnership with Saudi conglomerate, the Al Sadhan Group.
Three SPAR stores were opened in Riyadh. Plans are in place to open a further five stores throughout 2018, bringing the total number of stores in the country to eight by the end of the year.
SPAR International began its partnership with Al Sadhan Group in 2016, soft launching the first SPAR store in the second half of 2017. It has ambitious plans to open 40 stores in Saudi Arabia by 2020.
The first SPAR stores in the Saudi Arabian market are aimed at the mid-to-premium sector of the retail market. However, as the brand develops in the country, SPAR plans to launch stores in all economic sectors, providing customers with competitive pricing for the best global and local products.
SPAR International has provided extensive support to Al Sadhan in the lead-up to the store openings including study tours to other SPAR markets and fostering awareness of the SPAR way of working. Support was also given in logistics development, supply chain creation and store design.
The stores will benefit from the access to globally and locally sourced SPAR own brand products, expertise in category management and the support from SPAR International’s design and development teams to ensure modern and dynamic store design. SPAR International will also support SPAR Saudi Arabia to utilise the strengths of the joint buying model to ensure competitiveness.
“With a growing young population, rising GDP and increased consumer purchasing power, the retail market in Saudi Arabia has been growing steadily. We are delighted to enter this exciting and dynamic market with such an established and well-respected partner as the Al Sadhan Group,” says Tobias Wasmuht, managing director of SPAR International. “In addition, the new partnership provides SPAR with yet another important base in the Middle East, a region that is becoming more and more important to SPAR International’s strategic business development.”
“We are very proud of this partnership with SPAR International. Having the right mix between SPAR International’s knowledge and best practice along with our experience in the local market will provide our customers with an excellent retail experience. The SPAR brand products will be a key factor in our success, and we are getting great support from SPAR International’s team to source items from SPAR partners around the world. Also, this partnership is in-line with the Saudi Arabian vision 2030 and the support we have from the Saudi government for the development of the Saudi market,” adds Mohammed bin Abdul Aziz Al Sadhan, chairman of Al Sadhan Group.
The partnership with Al Sadhan Group in Saudi Arabia builds on SPAR International’s existing partnerships in the UAE, Oman and Qatar.
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