“Jarir” and “extra” .. as stability with ambition crosses

Ten years ago, no one would think that the story of the “Jarir Marketing” and “Extra” business would be rewritten by this drama. ‘Jarir’, which has always been the cornerstone of the Saudi grandchild sector since 1979, has gradually started. On the other hand, Extra tried to make the heart of the consumer electronics market with reluctant steps. But as the pioneers of the financial markets are known, the most important transformations are silent before it becomes an unmistakable reality. Ten years of paradoxes in 2015, one stock in “Jarir” achieved a yield of 0.69 Riyals, and many have not changed since then, as the profits reached 0.81 Riyals in 2024, with reference to stability, but it is not necessarily a great success, and at the level of profitability the net profit margin has dropped. As far as ‘extra’ is concerned, it started from the bottom where the share returns in 2015 were only 0.6 Riyals. But it became a financial phenomenon that scored 6.6 Riyals in 2024, more than ten times the growth during one decade. On the contrary, the net profit margin rose from 1.3% to 7.8% to become one of the fastest growing retail businesses in the Saudi market. It is noteworthy that the market value of the company is “extra” equal to half of the market value of “Jarir”, which amounts to 15.2 billion Riyals. But the numbers alone do not tell the full story. If there is an important factor that explains the gap between the performance of the two companies, the evidence may be in the administrative approach. Since its founding 45 years ago, Jarir has not changed his chairman or his CEO, which has given her administrative and long -term reliability. But this steadfastness can also be one of the causes of sluggish growth and the problems of adapting it to market variables. Although “Jarir” was a pioneer in the launch of smart devices and computers in the retail market, it did not add new activities that increased its profitability, leading to the decline in his profits margins, and Hisham Abu Jameeh, the founder and head of the ‘Financial Meki Technologies’. On the other hand, extra has adopted a more flexible approach. Although the CEO has not changed since 2007, he has worked on a renewed board and two chairman. During 2025, a new chairman was nominated, which gave her a mix of stability and gradual development. This strategy helped the business make tangible financial leaps and improvements. The advisor Majid Al -Saqqaf believes that this flexible approach ‘extra’ has a competitive advantage compared to ‘jarir’, which did not keep up with the pursuit of investors for expansion and innovation. It also indicates that the ‘extra’ benefits from the high percentage of citizens’ ownership of housing to improve perennial goods sales, a sector that owns all the ingredients’ jarir ‘to enter it, but it has not yet used the opportunity. He set an example of the Saudi telecommunications enterprise, which expanded its activities to trade oversight cameras and other commodities in the retail market. Hisham Abu Jameeh explains that the investment of the ‘extra’ company in the United International Holding, which owns the “Tashael Finance” business, which has become more than 40% of its profits, strengthened its financial strength and gave it greater flexibility in the light of market fluctuations, which enabled it to grow faster compared to “Jarir”. This balance between maintaining stability and making studied strategic changes is what was more capable of adapting to the market compared to “Jarir”, which still adheres to its traditional approach. Investor options between safety and adventure are firmly with a strong reputation; But slow growth is perhaps less encouraging for investors looking for rapid returns. While extra is a bet on rapid growth; But it faces a challenge to maintain this momentum without risking financial stability. It seems that Jarir prefers safe game; While extra betting over growth. But as everyone in the world knows, safe game in itself can be a risk. What next? In the coming years, the question will not be ‘better’ now? “Who will be the best in the future?” Can Jarir be able to break his traditional style and find out his strategies again to ensure its continued leadership, especially with the approaching shareholders’ voice over a new board, which can form a rare opportunity to change? On the other hand, ‘extra’ can maintain the momentum of its growth without losing control, especially with the chair of his board in 2025, while maintaining the CEO? In the business world, success is not related to those who dominate the market today, but rather have the ability to adapt and develop sustainably. While Jarir clings to her firm legacy, Extra still builds her strong presence and rely on her ability to constantly renew. The advisor Majid Al -SAQQAF argues that “innovation in the retail sector is no longer an option, but rather a necessity, and who does not keep up with changes, will lose its market share in favor of the most flexible competitors.” With the vote of Jarir’s shareholders on Wednesday evening, March 5, 2025, to choose the members of the board, the question remains: Is this event a turning point that regains the company’s road, or will it continue to follow the same approach, while the difference between IT and its competitors increases?