RIYADH, 15 July 2005 — As part of an innovative move to deter Saudis from changing jobs quickly, a major hypermarket has inserted a penalty clause in the employment contract. Abdullah Al-Ahmed, general manager of Business Development and Public Relations of Carrefour Granada, said on Wednesday the clause requires them to foot the cost of six-month training if they leave before the end of the contract period.
Speaking on the Saudization program, Al-Ahmed said their work force consists of 450 employees, of which 45 percent is Saudi. The company plans to open 21 branches over the next five years. The total manpower would be 10,500, of whom between 4,200-7,200 would be Saudis. However, five branches would open in Riyadh and Jeddah over the next two years.
The opening of the Carrefour outlet heralds a fierce competition in the hypermarket sector that has seen the launch of seven hypermarkets in Riyadh during the last two years. The ultimate beneficiary will be the consumer who could expect a downturn in prices as the hypermarkets battle it out for their share of the market.
He said another branch was expected to open in early 2007 in one of Riyadh’s new commercial centers, Flamingo Mall. Carrefour executives said one of the features of their hypermarket would be competitive pricing of products as part of their strategy to expand the client base. To this end, aggressive marketing and sales promotion would be undertaken to offer products at bargain prices. Asked about the breakeven point, Poiret said their immediate priority was to enlarge their client base by offering a wide range of products at competitive prices.