British DIY retailer B&Q is coming to Saudi Arabia amid rising home ownership across the Kingdom.
The move follows a franchise deal between owner Kingfisher and the Dubai-based Al-Futtaim Group.
B&Q is expected to launch two 50,000-square-foot stores by fall to introduce the DIY franchise to Saudi customers, the company said in a statement.
The news helped to drive up the stock of Kingfisher by 4 percent in early London trading on Tuesday.
“This franchise agreement is a great opportunity to expand our business in the attractive Middle Eastern home improvement market with B&Q, one of our most established retail banners,” said Kingfisher CEO Thierry Garnier.
Home improvement has fared better than most of the retail sector amid the pandemic. Millions of people around the world have used increased time at home to renovate their properties, spurring sales across the DIY retail sector.
The expansion into Saudi Arabia represents a significant move for B&Q and comes amid the development of a local mortgage market in the Kingdom.
The first B&Q stores in Saudi Arabia will stock a full range of home improvement products. Brands on offer will include Kingfisher’s portfolio, including Erbauer, Magnusson and GoodHome, alongside locally and internationally sourced products
The Al-Futtaim Group operates more than 200 brands across the Middle East, Asia and Africa. It has operated the retail franchises in the Middle East for Marks & Spencer since 1998 and for IKEA since 1991.
Source:https://www.arabnews.com/node/1822886/business-economy