The plan will involve the first B&Q franchised stores opening up in Saudi Arabia towards the end of the year, supported by an e-commerce proposition.
The acquisition is part of the home improvement retailer’s ‘Powered by Kingfisher’ plan, which involves growing the business in new territories through partnership agreements.
Thierry Garnier, CEO of Kingfisher, said: “This franchise agreement leverages our ‘Powered by Kingfisher’ plan, and is a great opportunity to expand our business in the attractive Middle Eastern home improvement market with B&Q, one of our most established retail banners, as well as our differentiated owned exclusive brands.”
John Wartig, the group’s chief transformation and development officer, added: “With the Al-Futtaim Group we have found the pre-eminent operator of retail franchises in the Middle East.
“They are a well-established and successful local partner who knows the market well, and are a strong partner with whom we can take our franchise plans forward. We are looking forward to working with them and introducing new customers to the trusted B&Q banner, as well as Kingfisher’s exclusive product brands.”
Regis Schultz, president of Retail at the Al-Futtaim Group, said: “Over the past nine decades, the Al-Futtaim Group has grown and diversified its business offering in order to deliver on our commitment of enriching the lives of our customer every day.
“Our strategic roadmap has enabled us to embrace forward-thinking business practices and seize key market opportunities to bring the best global brands to the region. We are excited to partner with Kingfisher, one of the most experienced home improvement retailers, to bring another trusted powerhouse to our customers in Saudi Arabia.”