Alsaif Gallery eyes robust growth, targets over 40% rise in e-commerce this year: CEO

Mohammad Alsaif, CEO of Alsaif Stores for Development and Investment Co. (Alsaif Gallery)

Alsaif Stores for Development and Investment Co. (Alsaif Gallery) is poised for significant growth opportunities and expects a robust growth in sales during the upcoming period, given the company’s exclusive product offerings, including home utensils and small and large home appliances, CEO Mohammad Alsaif told Argaam.

He added that the company continues to expand offline and online in terms of the number of branches across the Kingdom and the GCC countries, while focusing sales through various available e-channels.

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Alsaif pointed out that the Saudi-listed company is still achieving significant growth in its online platform annually, coupled with a 23% year-on-year (YoY) rise in the number of digital channel customers during 2023. He also noted that the company will continue to provide comprehensive e-services and benefits that will facilitate its expansion in the e-commerce domain as it targets over 40% growth in the e-commerce segment for 2024.

He stated that the company has started importing and selling large home appliances such as air conditioners, refrigerators, etc.

These products complement the diverse range of Alsaif Gallery’s products, providing several competitive advantages in this field, the CEO said.

The company focused on its brand in its entry into this segment, which plays a key role in raising the average value of customer invoices, improving profit rates and achieving differentiation in product offerings to meet customer needs.

Alsaif highlighted that a significant advantage for the company lies in introducing the new segment within its existing branches, which have ample space and eliminate the need to set up new branches in the near term. This move will lead to higher profit without substantially increasing startup costs or opening additional stores for this segment.

He noted that the appliances are available in 30 branches and through online platforms. The availability of these products is set to expand to 40 branches by the end of Q1 2024, and cover most branches before the end of Q2 2024.

Speaking on the geographical expansion, the CEO said that the company opened its first branch in Oman during Q1 2024, as well as two branches in the North and West of Riyadh, bringing its total branches inside and outside the Kingdom to 73. This will have a positive impact on profits in the coming period.

He pointed out that the company holds over 27% of the market share for small home appliances and approximately 40% of the market share in home utensils. Alsaif Gallery aims to acquire a significant market share in large home appliances from Q1 2024. 

Furthermore, Alsaif affirmed that there are no immediate plans to close any branches, given that the profitability of all branches varies. The entry into the large home appliances business is expected to boost branch performance and increase the percentage of sales per square meter.

Alsaif Gallery, similar to other companies, strives to expand its market share, particularly in light of the economic challenges and high-interest rates, the CEO said. He pointed out that the company can offer flexible prices, given that approximately 85% of the products sold in its stores are its own brands.

On the financial results, he stressed that Q4 2023 operational results increased by 12.7% year-on-year (YoY). However, the decrease in Q4 profit was attributed to realizing non-recurring profits of SAR 16.6 million in Q4 2022, resulting from selling a commercial building in Tabuk.

According to data available on Argaam, Alsaif Gallery’s profit fell 24% to SAR 98.2 million in 2023 from SAR 129.8 million in 2022.