Saudi Savola to double its retail business by 2010

Saudi company Savola Group intends to more than double its network of Azizia Panda supermarkets to 130 stores by 2010. The retailer does this against a background of increasing competition in the kingdom, especially from French retailers Carrefour and Casino (Géant), who with their respective local partners are growing their business in Saudi Arabia.

Muhammad Amin Kashgari, Savola's president of retail and real estate, disclosed the expansion plans to Reuters. Savola’s Azizia Panda is the kingdom's largest supermarket chain. New stores will be opened in cities such as Tabuk in the west and Jubail on east where Azizia Panda does not have outlets now. Savola owns about 60 Panda stores and malls, and plans to open five more this year, Kashgari said.

Last April, Savola Group posted its smallest quarterly profit in a year. It intends to boost the profitability of its retail division, which accounts for some 30 per cent of Savola Group’s total revenues. "We want to increase the volume of our sales to help improve the net margin," Reuters quoted Kashgari, who further stated that the company is considering to sell shares in Azizia to the public in an initial public offering after 2010.