{"id":16811,"date":"2022-03-28T14:20:32","date_gmt":"2022-03-28T14:20:32","guid":{"rendered":"https:\/\/www.meretailnews.com\/?p=16811"},"modified":"2022-07-28T12:25:18","modified_gmt":"2022-07-28T12:25:18","slug":"bindawood-holding-acquires-62-per-cent-of-e-commerce-platform","status":"publish","type":"post","link":"https:\/\/www.meretailnews.com\/2022\/03\/28\/bindawood-holding-acquires-62-per-cent-of-e-commerce-platform\/","title":{"rendered":"BinDawood Holding acquires 62 per cent of IATC"},"content":{"rendered":"<p><!-- VideographyWP Plugin Message: Automatic video embedding prevented by plugin options. --><br \/>\n<span data-contrast=\"auto\">BinDawood Holding has signed an agreement to purchase a 62 per cent market share in e-commerce partner International Applications Trading Company (IATC) <\/span><span data-contrast=\"none\">as it seeks to capitalise on the higher demand for online shopping.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">IATC has developed and operates a number of e-commerce platforms for BinDawood Holding\u2019s retailers, including hypermarket and supermarket chains BinDawood Stores and Danube, and luxury clothing retailer ETRE. <\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">\u201cThe acquisition of a majorit stake in IATC is a major step towards enhancing our e-commerce offering and strengthening our omnichannel presence \u2013 enabling BinDawood Holding to control the future growth of its business in an increasingly digitally connected world,\u201d said Ahmad BinDawood, chief executive of BinDawood Holding.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The deal is expected to close in the second half of the year.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The retailer has paid SAR107.5 million and will invest up to SAR160 million over the next two years to improve overall performance of its e-commerce platforms and fulfilment centres to quicken delivery windows, according to BinDawood. <\/span><\/p>\n<p><span data-contrast=\"auto\">The company said the acquisition will help \u201csupport the development of platforms and the roll-out of a network of state-of-the-art dark stores and fulfilment centres to optimise operations, fully integrate the customer experience and provide shorter lead delivery times\u201d.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">During 2019 and 2020, Saudi Arabia\u2019s e-commerce market grew 60 per cent amid the pandemic and digital transformation age, according to a report by global management consultancy firm Boston Consulting Group and multinational technology conglomerate Meta Platforms.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The report estimates e-commerce will be worth $13.5 billion by 2025. <\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The grocery retail market is expected to grow by 2.8 per cent each year to reach SAR177.5 billion by 2027, with its e-commerce penetration rising from 0.8 per cent to 3.5 per cent, says market research firm Euromonitor and accounting organisation Klynveld Peat Marwick Goerdeler.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">By 2028, BinDawood aims to manage 30 per cent of the e-commerce grocery market.\u00a0\u00a0\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">\u201cExpanding digital transformation and technical solutions is in line with Vision 2030,\u201d said Mr BinDawood.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">\u201cSaudi Arabia is among the largest and the fastest-growing e-commerce markets in the region, with e-grocery shopping still in a nascent phase.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">\u201cI am confident that this strategic acquisition will put BinDawood Holding in a prime position to capitalise on the growth of the sector.\u201d\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Grocery retailer operator purchases percentage of online shopping platform. 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