Alhokair see 408% rise in online sales, in talks to sell US, Balkan ops

The company closed a net 141 stores in the year and opened a net six food and beverage outlets. (Supplied)
Short Url
Updated 01 July 2021
Follow

Alhokair see 408% rise in online sales, in talks to sell US, Balkan ops

  • Alhokair reported a net loss of SR348 million ($92.8 million) in the three months through March 2021

JEDDAH: Saudi retail group Fawaz Abdul Aziz Alhokair Co. reported a 408 percent year-on-year rise in online sales in 2020, while it posted a smaller loss overall in the final quarter of its fiscal year, as revenues began to recover from the coronavirus disease (COVID-19) pandemic, its full-year net loss widened by almost two-thirds.

The retailer reported that in 2020 total online sales stood at SR218.2 million ($58.19 million).

“We are pursuing increased digitization and strengthening our e-commerce offer by bringing more brands online.

Our strategic acquisition of Vogacloset was a critical step in transitioning the business to an omnichannel footing, building a genuine lifestyle retail proposition,” Marwan Moukarzel, CEO at Alhokair, said in a press statement.

In March, it was announced that Alhokair had partnered with shopping center operator Arabian Centers Company to buy a combined 51 percent stake in UK-based e-commerce platform Vogacloset, in a deal valued at around SR68.9 million.

Despite the surge in online sales, annual revenues for the fiscal year ended March 31 amounted to SR4,232.5 million, a decrease of 20.8 percent year-on-year, resulting in a net loss of SR1,110.3 million, a 63 percent increase from a net loss of SR681.2 million the year before.

As the retail sector has begun to recover from the economic impact of the pandemic, the fourth quarter, ended March 31, saw total revenue decline 4.4 percent to SR1.132 billion and a loss of SR348 million, compared to a loss of SR915 million in the fourth quarter of 2020.

“This financial year presented extraordinary challenges that no market was prepared for, creating one of the most challenging retail operating environments in living memory,” Moukarzel said.

“Although a difficult period, which saw sales decline year-on-year in all segments, Saudi retail began to show signs of recovery as COVID-19 restrictions eased, with an improved trajectory in the third and fourth quarters. Meanwhile, international operations in key markets suffered for the majority of the year as COVID-19 related restrictions and closures persisted, and we only started to see easing in April 2021,” he added.

In terms of physical stores, the report said that while 84 new stores were opened between April 2020 and March 2021, 235 outlets were closed, meaning its overall retail portfolio declined by 141 stores.

In March, Moukarzel told Arab News he plans to move forward with the company’s ambitious expansion plan, aiming to open around 57 food and beverage outlets in the next 12 to 16 months and at least another 50 retail stores in the fashion, cosmetics, beauty and sports sectors.

International operations generated revenues of SR550.9 million in 2020, a decline of 42.8 percent, due to store closures around the world due to the pandemic. The financial report stated that the retailer was in talks with a serious buyer to exit its US operations and was hopeful to conclude the sale by September 2021. It also stated it plans to exit its Balkan operations, “thereby terminating exposure to noncore, nonperforming international assets,” the report said.


Middle East AI adoption reaches 75%, beating global average: PwC survey 

Updated 19 December 2025
Follow

Middle East AI adoption reaches 75%, beating global average: PwC survey 

RIYADH: Artificial intelligence is becoming embedded across Middle East workplaces, with 75 percent of employees using AI tools at work over the past year, a higher rate than the 69 percent global average, a new survey showed.

According to PwC’s Middle East Workforce Hopes and Fears Survey 2025, the region is outpacing global peers in adopting AI for everyday work, driven by government and corporate digital transformation efforts.

Based on responses from 1,286 employees, the survey indicates AI use has moved beyond pilot stages, with 32 percent of workers using generative AI tools daily — above the global average of 28 percent and reflecting growing familiarity with AI-driven workflows.

The survey findings align with trends observed in Saudi Arabia, where advanced technologies such as AI are being widely embraced across workplaces.

In November, a report released by KPMG highlighted the Kingdom’s progress in the technology sector, noting that 84 percent of CEOs in Saudi Arabia are ready to deploy AI responsibly — well above the 76 percent global benchmark — supported by the Kingdom’s data governance ecosystem, including national initiatives led by the Saudi Data and Artificial Intelligence Authority. 

Earlier this month, data from the Global AI Index revealed that Saudi Arabia ranked fifth globally and first in the Arab region for growth in the AI sector. 

Commenting on the findings, Randa Bahsoun, partner at PwC Middle East, said: “As employees confidently embrace change, build new capabilities and show remarkable adaptability with AI, they also want to feel secure and supported.” 

She added: “Organizations that provide clarity on how roles will evolve, expand access to learning and protect wellbeing will be the ones that retain talent and get ahead in a fast-changing labor market.” 

Adapting to the tech-driven future 

The latest PwC survey found that the Middle East workforce is confidently leading the integration of AI into daily work, while prioritizing job security and skills development at higher rates than their global counterparts.

According to the report, 49 percent of employees in the region expect technological change — including AI, robotics and automation — to impact their jobs to a large or very large extent over the next three years, compared with 45 percent globally.

PwC said this trend reflects not only higher adoption, but also greater readiness and comfort with next-generation technologies across the region. 

Employees in the Middle East increasingly view emerging technologies as tools that enhance productivity and creativity rather than threats to job security. 

Around eight out of 10 employees said AI has improved their productivity, with 87 percent reporting higher-quality work and 84 percent citing increased creativity. 

Higher confidence among younger employees 

The survey found that younger employees in the region demonstrate significantly higher confidence in AI’s potential, with millennials and Gen Z being the most hands-on users of AI tools. These groups are adopting new technologies quickly and often outpacing older cohorts in both usage and creative application. 

“This puts early career employees in a strong position to adapt to the evolving technological demands of entry-level roles,” said PwC. 

It added: “For employers, this is an opportunity to leverage younger talent to drive digital adoption and performance, while providing guidance, clarity and support as AI continues to reshape the future of work.” 

Acquiring the tools

Skills development remains a defining priority for the Middle East workforce, according to the survey. 

The report found that 69 percent of employees in the region gained new skills over the past 12 months, compared with 56 percent globally. 

Some 81 percent of respondents said they would prefer a job that offers opportunities to build transferable skills — higher than the 69 percent global average. 

Job security has also emerged as the top priority, with 85 percent of employees saying it is very important. 

“As employees in the Middle East seek balance and flexibility, their expectations of career progression and reward are also evolving. Fewer employees are asking for a pay rise than last year, signalling a more cautious labor market,” said PwC. 

The report found that engagement levels among the Middle East workforce remain among the highest globally, with 78 percent of regional employees saying they look forward to going to work, compared with 64 percent globally. 

Despite this high level of engagement, 45 percent of employees said they feel fatigued at least once a week, and nearly half reported feeling overwhelmed, indicating that workload intensity is becoming a significant pressure point. 

Converting momentum to benefits 

PwC highlighted several actions organizations should prioritize to convert the current AI momentum into a lasting advantage. 

The firm said companies should communicate clearly and consistently about where AI technologies are being deployed, what will change across processes, how job roles will be affected and where new value will be created. 

The report also emphasized the importance of building a continuously evolving, future-ready, skills-first workforce that can fully harness AI’s potential. 

“Leaders need to ensure upskilling, reskilling and capability building move 22 beyond periodic initiatives and become a key element of their organizations’ forward-looking business strategy,” said PwC. 

It added: “This means identifying future skill needs early, assessing current capabilities to understand gaps and using those insights to create development pathways tailored to roles, seniority and diverse career trajectories.” 

Companies should also foster a culture of agility and innovation and equip managers to effectively support AI-enabled teams. 

PwC said managers must have the clarity, tools and protected time needed to coach teams, support skill development and manage workloads in ways that sustain employee engagement and wellbeing. 

“This can be achieved by setting clear performance expectations for managers around employee development and wellbeing and supporting them with the knowledge and guidance needed to fulfil these responsibilities,” added PwC. 

Organizations should also prioritize flexibility, autonomy and balanced workloads to sustain high performance, giving employees the freedom and clarity to manage their work effectively. 

The report suggested that expanding flexible work arrangements, strengthening autonomy in day-to-day decision-making and giving teams a greater voice in how work gets done could help employees perform at their best. 

“The Middle East’s workforce continues to demonstrate a powerful blend of optimism, ambition and adaptability. The challenge now is for leaders to amplify these strengths through vision, transparency and care – ensuring that technology, trust and talent progress together,” concluded the report. 

Earlier this month, a KPMG report echoed similar views, saying UAE CEOs are accelerating investment in artificial intelligence while prioritizing people, skills and responsible innovation as core drivers of future growth. 

The report said 84 percent of CEOs in the UAE expect to expand headcount over the next three years, while 80 percent are already redesigning roles to integrate AI collaboration across their businesses.