Kuwait AlShaya Group announces the closure of 60 stores across Egypt
Kuwait's Alshaya Group is set to close 60 stores in Egypt due to the country's challenging economic situation, marked by currency devaluations and record inflation.
The difficult decision to reduce operations in Egypt was attributed to the economic challenges faced by overseas businesses over the past three years.
The group, which currently operates nearly 145 stores in Egypt, will be closing all physical stores and e-commerce operations of Claires, Debenhams, Mothercare, The Body Shop, and Pinkberry. Additionally, the number of stores for American Eagle, Bath & Body Works, H&M, and Victoria's Secret will be reduced. Starbucks, with 80 outlets across the country, remains unaffected by the closure plans.
As The spokesperson emphasized the group's commitment to the Egyptian market despite the challenging circumstances and expressed optimism about trading and potential growth in the near future. Alshaya Group has been present in Egypt for 18 years.
The economic difficulties in Egypt, including currency devaluations and inflation, have led to a series of challenges for businesses operating in the country. The closure of 60 stores reflects the impact of the country's economic situation on retail operations.
The decision not only affects physical stores but also extends to e-commerce operations for several well-known brands. Alshaya Group's move to reduce the number of stores for certain brands is a strategic response to the economic challenges and aims to ensure the sustainability of its operations in the region. The closure plans come amidst broader economic concerns in Egypt, with global ratings agencies downgrading the country's sovereign credit rating, citing mounting funding pressures.
Additionally, regional conflicts, such as the Israel-Gaza conflict, have contributed to a decline in tourist numbers, affecting various sectors, including retail. Despite these challenges, the Alshaya Group remains committed to the Egyptian market and expresses hope for future growth opportunities.