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Mazen AlDarrab, Founder and Chief Growth Officer (CGO) at Zid
Mazen AlDarrab, Founder and Chief Growth Officer (CGO) at Zid, a Saudi-based retail enablement company, revealed that the company has transformed from being a local to regional player in the modern retail sector.
In an interview with Argaam, on the sidelines of the Retail Leaders Circle MENA Summit (RLC), AlDarrab said that Zid, which commenced e-commerce operations in 2017, is a key player in the retail sector. It aims to enable the retail sector with the exception of groceries and restaurants. Zid operates in 23 retail segments and has more than 8 million customers who made purchases through its joint stores.
The company shifted from e-commerce to modern retail, which constitutes 80% of the retail sector, said AlDarrab, pointing out that Zid is a participant in the "Saudi Unicorns Program" led by the Ministry of Communications and Information Technology, which aims to support technology companies with rapid growth.
He explained that the annual growth in Zid operations ranges between 40-45% for more than 8,500 merchants. Some sectors witnessed greater growth during the COVID pandemic, such as entertainment and processed foods. The sectors that saw most demand in 2022 were edible foods, such as honey and coffee, and then cosmetics and personal care sector, and finally fashion.
The company seeks to reach stores in the classic retail sector to digitize the sector through modern retail, which focuses on building a bridge between the online and brick-and-mortar stores by linking branches and adding a purchase experience for customers to leverage from technology, information and data in trade, AlDarrab said.
He also noted that Zid closed three investment rounds, the last of which amounted to SAR 50 million, led by IMPACT46 Fund, adding that the company has local and regional investors from Kuwait, UAE, as well as global investment firms from China and the US.
Meanwhile, e-commerce to the retail sector in the Kingdom witnessed strong growth by 8-15% in 2022, compared to 4% in 2017. It is expected to grow by 15-20% by the end of the year, the CGO said.
He further indicated that the retail sector is the second largest contributor to the Kingdom's economy with 10%, as there are opportunities for growth by 20% on average for G20 economies. The Kingdom is eying this growth by supporting the sector under the leadership of the Ministry of Economy and the Ministry of Commerce, he concluded.
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