CAIRO: With the ambition of turning Omar Effendi department store into the crown jewel of the entire Egyptian retail sector as it once was, Anwal United Trading Company has shifted gear towards upgrading the store’s outlets.
“Our vision is to make Omar Effendi Egypt’s leading department store, second to none, said Jameel Al-Gnaibit, Omar Effendi’s chairman and managing director. “We’ve already begun implementing several modernization plans and expect to finalize them within a year from now.
Renovation plans include face-lifting Omar Effendi’s interior and exterior design, décor, signage, and display windows, as well as installing electricity, air conditioning and other facilities to improve its clients’ shopping experiences.
“Omar Effendi will display a wide majority of both local and international products ranging from apparel, household, to tools and equipment. We will also offer different partner-brands – i2 and others – the chance to showcase and sell their products in different branches, explained Arnaud Mailhe, Omar Effendi’s CEO.
As a major step along the road to renovation, Anwal yesterday signed a cooperation agreement with the International Finance Corporation. This will secure a $40 million loan – with an eight-year tender and a two-year grace period – targeted towards modernization of the store.
“We are proud to be partners in the transformation of Omar Effendi, a flagship of retail in the country, said Michael Essex, director of IFC in the MENA region. “By supporting the store’s transformation, IFC supports transformation of Egypt’s small and medium-sized enterprises, which supply the store with products, and thus support Egypt’s economy.
In addition to the loan, IFC acquired a five percent equity stake in Omar Effendi – worth $5.7 million – further highlighting its confidence in Omar Effendi’s popularity and strong brand name.
“Omar Effendi serves all Egyptian consumers with its low cost products and high supply efficiency, and we want to support operating its retail stores up to international standards, he added.
This is IFC’s first investment in the non-financial sector in the country. “The retail sector is a channel of goods and services offered by various manufacturers and suppliers. So, through this investment, we are actually promoting development of these small companies, Essex pointed out.
IFC, the private sector arm of the World Bank Group, has long supported Egyptian companies and has, this year alone, allocated $300 million to 11 companies, marking a 3.5 percent increase over last year’s figure.
“IFC does not invest in companies unless they believe in its success and capability to leverage its performance to a much higher level, Al-Gnaibit stated. “And the support they’ve given us reflects their confidence in our plans as well as their willingness to support Egypt’s privatization agenda.
Saudi-based Anwal finalized purchase of Omar Effendi last February in a staggering deal worth $102.5 million. The company has earmarked over LE 300 million to renew the dilapidated store, starting with the seven most important branches in Taalat Harb, Roxy, Adly, Dokki, Mourad, Sayeda Zeinab, and El-Hegaz.
As for the branch on Abdel Aziz Street in Downtown Cairo – deemed to be of architectural or historical value – Anwal will offer it up to bidding to revamp this particular branch, reviving it to its original condition.
“We will announce Omar Effendi’s grand re-opening after we are done renovating and refurbishing all branches, Mailhe clarified. A process which is expected to be fully completed by mid-2008.
Anwal will also deploy advanced technological systems in all Omar Effendi’s branches and establish an electronic database connecting all branches together. The new owner of the store will also launch training courses to maximize the skills of all store’s HR personnel.
Al-Gnaibit confirmed that Anwal would keep the Omar Effendi trade name alive, as previously stipulated in the deal. “Omar Effendi’s name is key to its success and a value of its history and culture.
