Jarir to push ahead with expansion

Jarir Bookstore, one of the largest listed retailers in the Middle East, will go ahead with plans to double the number of outlets to 40 over the next three years and has said that revenue in the year to date is unaffected by the global economic crisis.

But the Dubai market is "not a priority" for the company due to high rents and fierce competition in the city’s retail sector, Jarir’s chief executive told Arabian Business in an interview.

“Up until now it’s okay. Our sales are still higher than last year, but I don’t know about tomorrow,” Akram Al Agil said, reiterating the company’s full year earnings guidance of 350 million riyals ($93.3 million) in net income.

The next two months are going to give an indication of the company’s performance next year, he added.

Jarir is the largest retailer of laptops in Saudi Arabia, where it holds a 40 percent market share. Shuaa Capital estimates that the company is growing laptop sales by more than 50 percent per year.

“We’re going to be in Dubai, but it’s not our priority,” Al Agil said, citing the high number of competitors there. “We have a branch in Abu Dhabi which is doing very well."

Out of Jarir’s new stores, 11 will be in non-Saudi, GCC markets. It currently operates 21 branches.

Al Agil said the Saudi market, the company’s largest, will be less affected by the financial crisis than Dubai, where real estate prices are predicted to fall after six years of strong growth.

Jarir Bookstores sell books, stationery, and computers in large, usually stand alone superstores.

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