Alsulaiman Group to increase IKEA stores to 30 in 5 years: CEO

Saud Al-Sulaiman, CEO of Alsulaiman Group

Alsulaiman Group (ASG) is keen on increasing the number of IKEA showrooms from nine to 30, with different models and spaces within the next five years, CEO Saud Al-Sulaiman told Argaam.

The new stores will be near main cities to ensure easy access as population density increases in these areas, as well as in Madinah, Makkah, Al-Qassim, Jazan and Tabuk, Al-Sulaiman said on the sidelines of the Retail Leaders Circle MENA Summit.

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Circle K Company, for which the group owns the commercial franchise in the Kingdom, is the second largest international company in the catering and grocery sector in Saudi Arabia, he said, adding that it is the first international brand to enter the Saudi market in this sector.

Al-Sulaiman said that Circle K will be a suitable solution for the speed of life in the Kingdom, as it provides solutions to consumers and is located in strategic locations such as office buildings, petrol stations, etc. He further indicated that Circle K has 40 showrooms in petrol stations, hospitals, and libraries.

He explained that the expansion plans are in line with the Ministry of Energy’s decision to raise the level of service quality at petrol stations, as Circle K stores will help provide a better customer experience through the interconnection between catering services, groceries, and supply centers within petrol stations.

He pointed out that the group began contracting with some petrol stations, such as ADNOC, Petromin, and others, to open Circle K stores. He highlighted that the company is working to provide a commercial franchise for Circle K, including training, qualification, and adequate support, with the aim of expanding in a faster manner and reducing the problem of commercial concealment in groceries.

ASG plans to expand Flow, which operates in the logistics sector, to triple its current size within the next five years, Al-Sulaiman said.

Flow has approximately 13 warehouses in Saudi Arabia, and more than 300 delivery vehicles. The company is also expanding to other GCC states.

He indicated that the group established a real estate fund that has five major projects including commercial, residential, and entertainment centers. In addition, ASG plans to implement these projects in five different regions in the Kingdom, as the project began in Riyadh and Madinah, and will soon launch in Abha, Makkah, and Al-Qassim.