Fawaz Abdulaziz Alhokair Group, Saudi Arabia’s listed retailer, signed two separate franchise agreements with the US and Danish companies to expand its retail portfolio.
The deals are with Danish retailer Flying Tiger Copenhagen and US-based yoga and athleisure brand Alo Yoga, the company said in a statement to the Tadawul stock exchange, where its shares trade.
Flying Tiger Copenhagen is a variety store retailer selling toys, accessories, stationery and gadgets, while Los Angles-based Alo Yoga sells exercise and yoga-related clothes.
“As the largest retail market in the Middle East, Saudi Arabia is a gateway to the region and an enthusiastic adopter of innovative trends and products,” Marwan Moukarzel, chief executive of Fawaz Abdulaziz Alhokair said on Monday.
“We are confident that Flying Tiger Copenhagen’s wide range of affordable products, will witness great success, especially among young Saudi customers – offering more tools to inspire their creativity while meeting local and international sustainability standards.”
Alhokair and Flying Tiger Copenhagen plan to open 45 stores across the country over the next five years, with nine stores and an online channel set to be operational this year, the company said.
The toys, hobbies and DIY crafts market in Saudi Arabia is expected to grow to $724 million in 2021, as people spend more time at home due to the coronavirus pandemic, according to data portal Statista.
The first Alo Yoga store will be based at the Kingdom Centre in Riyadh, but the company did not give a timeline for the opening.
“Triggered in part by the pandemic, Saudi customers have in the last year or so become increasingly health and fitness focused and have begun incorporating exercise routines into their daily life,” Moukarzel said.