2024-01-17 16:20:00
06:20 PM Wednesday, January 17, 2024
Cairo – Masrawy:
The Kuwaiti Alshaya Group, operator of a number of famous retail brands in Egypt and the Middle East, decided to close its stores in Egypt, completely or partially, according to what the East Economy website revealed with Bloomberg today.
The company’s decision is due to the economic situation, the decline of the Egyptian pound, and economic difficulties in the recent period, according to what the website stated.
Alshaya Group sent a message to employees of the stores it intends to close in which it said: “As a result of the economic situation over the past three years, and the difficulties facing our business in Egypt, including the decline of the currency, exchange rate pressures, and high inflation, we were forced to make the difficult decision to reduce… Our operations in the country.
She added: “The (Debenhams) brand will be withdrawn from Egypt, whether in terms of closing the physical stores or the e-commerce activity, by the end of February 2024. We would like to take this opportunity to thank you (the employees) for your support during your work, and we will continue to work with you, and share with you all the developments that we encounter.” To ensure a smooth closure and exit from the market.”
An official in one of the largest commercial centers in Egypt told Al-Sharq, requesting that his name not be published, that the Alshaya Group informed them last night of its decision to completely close several stores inside Egypt, such as “The Body Shop,” “Debenhams,” “Mother Care,” Pinkberry.
While there will be a partial closure of “H&M”, “Victoria’s Secret”, “American Eagle”, and “Bath & Body” stores, according to what Al-Eqtisad Al-Sharq reported from Al-Masdar.
Alshaya Group was established in 1890 and is considered one of the oldest companies in Kuwait, and one of the largest operators of famous retail brands in the Middle East.
These developments come in light of the economic crisis that Egypt is facing, especially with regard to the lack of cash flows, the exchange rate crisis, black market activity, and the large gap between the price of the dollar on the black market and its stable price in banks since last March, which is close to reaching regarding 100% following its jump today. On the black market for regarding 60 pounds, compared to regarding 31 pounds in banks.
The group is committed to expanding in Egypt despite the decision!
Commenting on the decision, Mohammed Al-Shaya, Chairman of Al-Shaya Group, told CNBC Arabia that despite the decision to close Debenhams stores in Egypt, the group is committed to expanding investment in the Egyptian market as economic conditions stabilize.
He pointed out that the rest of the group’s brands in Egypt are doing well.
CNBC revealed that the closure of Debenhams stores in Egypt will occur at the end of next February, indicating that this is at a time when Debenhams stores, affiliated with the Alshaya Group, are facing a financial crisis that has prompted it to close many of its branches in the United Kingdom.
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