JEDDAH, SAUDI ARABIA – Fawaz Abdulaziz Alhokair Co reportedly ends agreement with number of “non-performing” brands.
Saudi retailer has reportedly pulled out its franchise partnership with Marks & Spencer.
Reuters quoted a company statement as saying it has to ended similar agreements with a number of “non-performing” brands.
The firm, which owns franchise right for brands including Mango, Zara and Banana Republic in the Middle East, said a decline in sales during the quarter was driven by the closure of non-performing stores and the disposal of weak brands as part of “a portfolio optimizations strategy”.
Earlier this month, the retailer announced that it will acquire the Saudi franchise for 10 international food and beverage brands from Food and Entertainment Company LTD.
The deal will see an exchange of non-core receivables valued at ST340 million ($90.5 million) with the current operator, it said.
The company said the acquisition reinforces its vision to create a stronger “shoppertainment” experience with over 10 F&B brand and 200 locations in Saudi Arabia.
Alhokair posted first-quarter net profit of SR224 million, down 10.1 percent from a year earlier.