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Saudi Retailer Fawaz Alhokair Pulls Out Of M&S Franchise Partnership

Published on Aug 21 2019 8:39 AM in Retail tagged: Saudi Arabia / Marks & Spencer / World News / Fawaz Abdulaziz Alhokair

Saudi Retailer Fawaz Alhokair Pulls Out Of M&S Franchise Partnership

Saudi Arabian retailer Fawaz Abdulaziz Alhokair Co. has pulled out of its franchise partnership with British store group Marks & Spencer and has ended similar agreements with a number of "non-performing" brands, it said on Wednesday.

Alhokair posted first-quarter net profit of 224 million riyals (€54.1 million) down 10.1% from 249.2 million riyals a year earlier.

The firm, which owns franchise rights for brands including Mango, Zara and Banana Republic in the Middle East, said a decline in sales during the quarter was driven by the closure of non-performing stores and the disposal of weak brands as the group press ahead with a "portfolio optimisation strategy."

Marks & Spencer (M&S) was not immediately available to comment outside of its business hours.

News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.

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