Clas Ohlson expansion to the Gulf

Clas Ohlson intends to expand into the Gulf region and, to start with, is working in partnership with a franchisee. The Swedish trading group has now concluded a franchising agreement with SYH Retail, a subsidiary of the Al Homaizi Group headquartered in Kuwait. The Clas Ohlson retail concept is to be implemented in the states belonging to the Gulf Cooperation Council (GCC). They are the United Arab Emirates (UAE), Kuwait, Saudi Arabia, Qatar, Oman and Bahrain. The first two stores are expected to open next year in either the UAE or Kuwait. There are plans for the opening over the next five years of at least 20 outlets in the region, which has a population in excess of 40 mio. The expectation at Clas Ohlson is that the retail market will see annual growth of eight per cent. Founded in 1961, the Al Homaizi Group is heavily involved in the franchising business in both the GCC region and in North Africa. It operates an Ikea furniture store in Kuwait, for instance, plus Burger King and Pizza Hut fast-food restaurants, as well as fashion and sports shops.