eXtra’s expansion strategy rolls further into the Gulf

05/07/2012

• More than 4,000 square meters store to open in Muscat

Khobar, Saudi Arabia; May 07, 2012: United Electronics Company (eXtra), Saudi Arabia’s fastest-growing consumer electronics and home appliance retailer, today announced plans to open its first store in the Sultanate of Oman. The store in Muscat will be eXtra’s first outside of the Kingdom of Saudi Arabia.

eXtra aims to become the leader in the consumer electronics and home appliance market which is worth upwards of SAR 2.5 Billion. The population of Oman is more than 3 million where the GDP per capita growth has been 4.25% annually for the last two years. The more than 8,000 square meters lot with a more than 4,000 square meters store is currently under construction in the Bausher region. The store is part of a newly formed Limited Liability Company, United Electronics Company in Oman.

“eXtra’s tremendous success since its formation has been built on being located close to our customers and offering them the widest choice of products at the best prices. Our expansion strategy has been focused on meeting the local demand in the Saudi market and our planned growth will continue locally as well as regionally. Our expansion into Oman marks another major milestone in our long-term strategic growth plans, and brings us another step closer to achieving our goal of becoming one of the region’s favorite retailers. These plans include Bahrain and Qatar which will help us gauge the regional market and allow for further expansion into Middle East.” said Abdullah Al Fozan, Chairman of the Board, United Electronics Company (eXtra). “The opportunities for big box consumer electronics retailers are particularly bright in Oman and this is due to the young and growing population and the purchase power of the consumer and we will strive to achieve our vision of becoming the leading retailer of consumer electronics, appliances and communication solutions in the central region of the world by 2020”.

In 2011, eXtra opened outlets in Hafr al Batin, Najran, Damman, Riyadh, Jeddah, Al Kharj, Jubail. This was followed at the beginning of 2012 with a new store opening in Jizan, bringing eXtra’s Kingdom-wide network to 25 stores.

eXtra recently reported its first quarter earnings for the three months ending March 31, 2012, eXtra reported sales of SAR 626 million with an increase of 31.3% on the same quarter of 2011, eXtra also reported a net profit of SAR 23.8 million, an increase of 25 per cent compared to the same period of 2011. Total profit for the quarter was SAR 111.9 million, an increase of 22% on the same quarter for the previous year.

In both 2010 and 2011, eXtra was cited by the Saudi Arabian General Investment Authority (SAGIA) as one of the Kingdom’s fastest-growing companies. In addition, eXtra was also recently named as one of the Arabia 500 top companies in recognition of its exceptional growth and sustained commercial success. The company was also voted by one of the Kingdom’s leading economic newspapers as offering the “Best Retail Working Environment in the Kingdom”.

Founded in 2003 and headquartered in Khobar, eXtra is by far the largest consumer electronics and home appliances retailer in Saudi Arabia – at more than three times the size of its nearest competitor in terms of number of stores. eXtra’s aggressive expansion strategy, as well as its market leading promotions, enabled the company to deliver strong financial results in 2011.