‎Cenomi Retail to close some stores in 2023: CEO

‎Cenomi Retail to close some stores in 2023: CEO

Fawaz Abdulaziz Alhokair Co.'s (Cenomi Retail) second-quarter results are a step towards achieving profitability, CEO Günther Helm told Argaam in an interview.

He expects the company to break-even, return to profitability, and continue to implement the turnaround program.

Accumulated losses stand currently at 10% of capital, the CEO said, adding that the firm is directing its efforts towards the optimization of its brand portfolio, rationalization of stores, and overall divestment in non-strategic assets.

"We continue to be well on track in our journey towards delivering impact, profitability and increased shareholder value," Helm said.

Landlords of malls and shopping centers strategically extend periodic support to their major tenants and anchor brands through financial contributions or fees. This strategic approach is an investment on the part of the landlords, as they keenly recognize the pivotal role these brands play.

"Not only do these brands attract a substantial number of visitors to the premises, thereby enhancing footfall, but their presence also acts as a catalyst sparking interest among potential tenants, subsequently boosting occupancy rates," Helm said.

With regard to retailers, the company always analyzes store-level profitability, perpetually trims underperforming stores, and invests in growing locations. "We have identified 33 stores in Saudi, 16 in Morocco and 39 in Egypt