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Jarir Bookstores reveals 2007 sales spike
by Stuart Wilson, Thursday 6 March 2008
Saudi Arabian retail powerhouse Jarir Bookstores has revealed that its sales climbed 15.7% year-on-year in 2007 to a massive US$464.7m. The company, which sell a wide range of products including IT kit, has 23 outlets in Saudi Arabia, three in other GCC countries and also has investment property located in Egypt.
Jarir’s 2007 financial results offer a fascinating glimpse into the true scale of the Saudi Arabian retail market. The company’s 2007 operating profits rose 14.5% to US$74.1m with net income jumping 13.7% to US$73.8m – compared to US$64.9m in full year 2006. Jarir Bookstore’s healthy double-digit growth rate underlines the strength of the Saudi Arabian retail market.
Jarir Bookstore’s financials also provide an insight into the revenue split between the company’s two main operating segments: retail and wholesale. In full year 2007, retail accounted for 87% of total sales and 89% of net profits with the remainder contributed from the company’s wholesale operations.
Jarir Bookstore has also demonstrated its long-term commitment to its staff, establishing an ‘Employee Incentive Plan’ whereby the company grants selected employees the right to receive incentive cash compensation if specified conditions are met. The amount of compensation is tied to the growth in net income of the company.