Saudi retail group, Fawaz Abdul Aziz Alhokair Co., reported annual revenues for the fiscal year ended March 31 of 4.23 billion riyals ($1.13 billion), a decrease of 20.8 percent year-on-year, resulting in a net loss of 1.1 billion riyals ($293.3 million), according to an Arab News report.
The fourth quarter showed signs of a turnaround for the retailer, with Alhokair’s total revenue decline narrowing to 4.4 percent.
“This financial year presented extraordinary challenges that no market was prepared for, creating one of the most challenging retail operating environments in living memory,” said Alhokair CEO, Marwan Moukarzel.
A bright spot on the report was the 408 percent year-on-year rise in online sales in 2020. The retailer reported total online sales in 2020 of 218.2 million riyals ($58.19 million).
In March, it was announced that Alhokair had partnered with shopping centre operator Arabian Centers Company to buy a combined 51 percent stake in UK-based e-commerce platform Vogacloset, in a deal valued at around 68.9 million riyals ($18.37 million).
The financial report also revealed the retailer was in talks with a buyer to exit its US operations and was hopeful to conclude the sale by September 2021. It also stated it plans to exit its Balkan operations, “thereby terminating exposure to noncore, nonperforming international assets,” the report read in part.