Clas Ohlson expands internationally through franchising in GCC region
With Clas Ohlson’s strong concept, brand and market position in the Nordic region as a base, sights are now set on continued international expansion. Through franchising, as a complement to Clas Ohlson’s primary establishment strategy based on wholly owned operations, additional growth opportunities can be created in new markets.
A franchising agreement has been signed with SYH Retail, Al Homaizi Group Company, regarding the establishment of Clas Ohlson’s retail concept in the GCC (Gulf Cooperation Council) region, which includes the United Arab Emirates, Kuwait, Saudi Arabia, Qatar, Oman and Bahrain. The agreement pertains to the establishment of first two stores in United Arab Emirates or Kuwait with opening scheduled during 2014. Following an evaluation of the initial stores that are established there, the ambition is to establish at least 20 stores in the region over a five-year period.
“The cooperation with Al Homaizi Group, which is an experienced and successful franchisee with a strong market position in the GCC region, opens up potential for complementary business opportunities in an attractive region with more than 40 million inhabitants and an expansive retail market offering anticipated annual growth of 8 per cent over the years ahead. We have a unique and attractive concept that will satisfy a growing need in the region to find smart solutions to everyday practical problems,” says Klas Balkow, President and CEO of Clas Ohlson.
Al Homaizi Group, a family business based in Kuwait, was founded in 1961 and since then has succeeded to establish a long and solid franchise experience by operating global brand partnership business throughout the GCC Region and Northern Africa. The Al Homaizi business represents home furnishing, fashion and food with brands as IKEA, Burger King, Franklin and Marshall and Pizza Hut among others.
“Al Homaizi Group’s ambition is and has always been, to improve our business operation by focusing to the best of our customers. We are happy and proud to be the selected partner. This is a proof of our ambition and success over years and the result of our deep roots in the retail industry.
The 100 years experienced Clas Ohlson concept is new for our region. It is very inspiring to launch a new business that will ease and contribute in the everyday life at home and work.
We are proud to establish and to put all our effort into a sustainable growth throughout the years in the region. Clas Ohlson franchise partnership with SYH Retail is a fresh start, growing new success stories for the future” says Seda Bayarlar, Managing Director SYH Retail, Clas Ohlson Franchisee.
For more information, contact:
Klas Balkow, President and CEO, +46 247 447 55
John Womack, Director of Information and Investor Relations +46 70 678 24 99
Seda Bayarlar, Managing Director SYH Retail, Clas Ohlson Franchisee +971 505 239 291
About Clas Ohlson
Clas Ohlson was founded in 1918 as a mail order business based in Insjön, Dalarna, Sweden. Today, the company has 178 stores in four countries and sales via the Internet, mail order, telephone and social media. Clas Ohlson helps its customers solve everyday practical problems with a range of affordable products in the five product areas: Hardware, Electrical, Home Multimedia and Leisure categories. The company is listed on the OMX Nordic Exchange and has approximately 4,300 employees. For further information about Clas Ohlson, visit http://about.clasohlson.com (financial information) or http://www.clasohlson.com (e-commerce).
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