RIYADH: UAE-based fashion, homeware, and toys retailer Brands For Less, has agreed to sell a 35 percent stake to the TJX Cos. in a deal that values the business at $1.2 billion.
BFL will use the partnership to receive valuable guidance from the US-based department store corporation, as it seeks to expand beyond the Gulf Cooperation Council.
The TJX Cos. has over 5,000 stores across nine countries on three continents, while BFL has over 120 outlets across the GCC and Europe – entering into the Saudi market in June 2022
“We are thrilled and honored to have TJX as an investor and we thank TJX CEO and President Ernie Herrman and his leadership team for placing their trust in our business,” said Toufic Kreidieh, executive chairman and co-founder of Brands For Less Group.
He added: “This is an exciting opportunity for growth, and with TJX’s international expertise, we are well placed to successfully execute our strategy while supporting the development and rewarding the dedication of our employees.”
In the last two years, BFL has opened more than 35 new stores in Saudi Arabia and is preparing for further international expansion.
Speaking during the 10th Retail Leaders Circle MENA Summit in February, Saudi Minister of Municipal and Rural Affairs and Housing Majed Al-Hojail highlighted that Saudi Arabia’s retail sector contributes 23 percent to the non-oil economy and is aiming to exceed SR460 billion ($122.6 billion) by the end of 2024.
He said this area holds utmost importance as it is a key driver in the economy and local gross domestic product.
