Al Othaim holds 22% market share, seeks to scale back expansion: CEO

Al Othaim CEO Muaffaq Mubarah pinpoints the Saudi-listed retailer's growth momentum against the backdrop of the recent Q3 2025 performance

Muaffaq Mubarah, CEO of Al Abdullah Al Othaim Markets Co.,said the company’s market share rose to 22% Kingdom-wide and 29% in Riyadh, which should support future growth.

As many as 115 new stores were opened from 2023-2025, bringing the total to more than 400. While this has temporarily raised costs, it represented long-term investments, with new branches taking three to five years to break even, he told Al Ekhbariya TV.

On financials, Mubarah said the third-quarter sales and market share demonstrated sustained growth, delivering a 6% year-on-year (YoY) sales increase.

He highlighted the intense competition witnessed in the Saudi retail market. However, Al Othaim’s strong logistics infrastructure, wide branch network, and 500+ supplier relationships give it an edge. Further, last September, its e-commerce sales advanced by more than 4%.

Al Othaim plans to moderate its expansion pace to sustain comparable sales, targeting under-penetrated regions with a market share of less than 15% like Jeddah. Accordingly, it eyes opening 10-12 new stores between 2025-2026, versus 50-60 additions in previous years.

As for digital expansion, the recent Amazon partnership is deemed a vital step towards expanding Al Othaim’s e-commerce reach, capitalizing on the former’s widespread presence in over 114 Saudi cities and provinces. This collaboration is bound to bear fruit soon, the top executive revealed.

Al Othaim’s investment diversification drive remains on track, holding a 68% stake in its manpower-focused subsidiary Mueen Recruitment Co., which achieved remarkable growth over the past two years. This is besides tapping new segments such as business and student services, paired with boosting its e-commerce presence to meet long-term goals, Mubarah continued.

Elsewhere, he expected rice prices to remain stable or trend lower over the next six months amid balanced supply and demand.

Mubarah is optimistic on domestic market activity and the Saudi economic momentum, noting annual customer growth of roughly 10%. This in turn should support better fourth-quarter results and enable sustained growth next year.

Al Othaim’s profits fell to SAR 135 million in the first nine months of 2025, from SAR 225.5 million last year. The third-quarter profits reached SAR 17.5 million, according to Argaam’s data.