Dar Al Arkan signs deal with Majid Al-Futtaim for VOX Cinemas multiplex at Al-Qasr Mall in Riyadh

Real estate developer Dar Al Arkan has announced that it has signed an agreement in Riyadh with Majid Al-Futtaim to open a VOX Cinemas multiplex in Saudi Arabia. (Supplied: Dar Al Arkan)
Updated 05 September 2018

Dar Al Arkan signs deal with Majid Al-Futtaim for VOX Cinemas multiplex at Al-Qasr Mall in Riyadh

  • VOX will operate the new 15-screen multiplex, scheduled to open in the first quarter of 2019
  • VOX Cinemas is the largest cinema operator in the MENA region and the leading regional cinema operator in the Kingdom

RIYADH: Real estate developer Dar Al Arkan has announced that it has signed an agreement in Riyadh with Majid Al-Futtaim to open a VOX Cinemas multiplex in Saudi Arabia.
VOX will operate the new 15-screen multiplex, scheduled to open in the first quarter of 2019, at Dar Al Arkan’s Al-Qasr Mall in the Saudi Arabian capital. The project will also include outlets, restaurants and an indoor bowling alley.
Yousef bin Abdullah Al-Shelash, Dar Al Arkan chairman, said: “Majid Al-Futtaim is a perfect partner that will help us create a unique experience at Al-Qasr Mall for Riyadh residents and visitors.
“Al-Qasr Mall is an ideal site for this new feature in family entertainment and is expected to become a celebrated addition to our existing and diverse selection of outlets that offer something for everyone.”
He added: “These are exciting times for Saudi Arabia and we are delighted to be playing a small but significant part toward achieving the Kingdom’s Vision 2030, which aims to build an entire ecosystem for arts, tourism and entertainment.”
Kelvin Kwok Han Sim, CEO of Dar Al Arkan said: “The new cinema complex will feature the next generation technology fit for the current sophisticated and tech-savvy Saudi movie-buffs. This is a significant contribution and a novel addition to the evolving Saudi-cinema-culture.”
Cinemas had been banned in the country since the early 1980s but were reopened earlier this year as part of reforms led by Crown Prince Mohammed bin Salman.
In April, Marvel’s “Black Panther” made history as the first new release in the Kingdom for 35 years.
While regional and international cinema chains are eyeing the Saudi market — keen to tap into the spending power of the country’s young population — VOX Cinemas is the largest cinema operator in the MENA region and the leading regional cinema operator in the Kingdom.


Struggling Victoria’s Secret sold as women demand comfort

Updated 22 February 2020

Struggling Victoria’s Secret sold as women demand comfort

  • Chairman calls time following difficult year of Epstein links and controversy over chief marketing officer comments

NEW YORK: Victoria’s Secret has a new owner. Now, the big question is whether the once sought after but now struggling brand can be reinvented for a new generation of women demanding more comfortable styles.

The company’s owner, L Brands, said that the private-equity firm Sycamore Partners would buy 55 percent of Victoria’s Secret for about $525 million. The company, based in Columbus, Ohio, will keep the remaining 45 percent stake. After the sale, L Brands will be left with its Bath & Body Works chain and Victoria’s Secret will become a private company.

Les Wexner, 82, who founded the parent company in 1963, will step down as chairman and CEO after the transaction is completed, and become chairman emeritus. Wexner has faced seperate troubles, including questions over his ties to late financier Jeffrey Epstein, who was indicted on sex-trafficking charges.

The selling price for Victoria’s Secret signifies a marked decline for a brand with hundreds of stores that booked about $7 billion in revenue last year.

In a statement, Wexner said the deal would provide the best path to restoring Victoria’s Secret’s businesses to their “historical levels of profitability and growth.” The deal will also allow the company to reduce debt and Sycamore will bring a “fresh perspective and greater focus to the business,” he said.

To successfully turn around Victoria’s Secret, Sycamore will need to change up the corporate culture, reinvent fashions and redesign the stores to make them more contemporary, experts say. Sycamore manages a $10 billion portfolio including retailers as Belk, Hot Topic and Talbots.

The management team at Victoria’s Secret essentially was designing what men wanted, and not catering to women’s tastes, said Neil Saunders, managing director of GlobalData Retail.

“The brand is very embedded in the past,” said Saunders. “It was always about men feeling good. It should be about making women feel good about themselves.”

Victoria’s Secret has an unparalleled history of success. The brand was founded by the late Roy Larson Raymond in the 1970s after he felt embarrassed about purchasing lingerie for his wife. Wexner, the founder of the then Limited Stores Inc., purchased Victoria’s Secret in 1982 and turned it into a powerful retail force. By the mid-1990s, Victoria’s Secret lit up runways and later filled the internet with its supermodels and an annual television special that mixed fashion, beauty and music.

That glamor has faded and so have sales in the last few years. The show was canceled last year, and shares of Victoria Secret’s parent have gone from triple digits less than five years ago to a quarter of that today.

Victoria’s Secret struggled to keep up with competition and failed to respond to changing tastes among women who want more comfortable styles. Rivals like Adore Me and ThirdLove, which have sprouted up online and marketed themselves heavily on social media platforms like Instagram, have focused on fit and comfort while offering more options for different body types. Meanwhile, American Eagle’s Aerie lingerie chain, which partners with women activists like Manuela Baron, has also lured customers away from Victoria’s Secret.

And in the era of the “Me Too” movement, women are looking for brands that focus on positive reinforcement of their bodies.

“Victoria’s Secret will need to empower women, not make them spectacles,” said Jon Reily, senior vice president and global head of commerce strategy at digital consultancy Isobar.

Stacey Widlitz, president of SW Retail Advisers, a retail consultancy, said that Victoria’s Secret designs in the last few years had gone in the opposite direction to what women wanted, ever sexier and poorer in quality.

And while last year Victoria’s Secret started featuring more diverse models, including its first openly transgender model, the moves fell short.

Victoria’s Secret suffered a 12 percent drop in same-store sales during the most recent holiday season. L Brands said on Thursday that same-store sales declined 10 percent at Victoria’s Secret during the fourth quarter. Bath & Body Works, which has been a bright spot, enjoyed a 10 percent increase. The skincare chain represents more than 80 percent of L Brands’ operating profit.

“The (Victoria’s Secret) brand has lost its way, while the lingerie market is not large or high growth, and has become commoditized,” Randal Konik, an analyst at Jefferies, wrote Thursday. “Furthermore, with athleisure taking over, the need for regular bras continues to wane.”

The company has also been beset by allegations of a toxic work environment and its founder recently apologized for his ties to Epstein, who was found hanged in his cell after federal indictment for sex trafficking of minors. L Brands’ Chief Marketing Officer Ed Razek resigned last August after making controversial comments about why transgender models shouldn’t partake in its annual fashion event.

Epstein started managing Wexner’s money in the late 1980s and helped straighten out the finances for a real estate development backed by Wexner in a wealthy suburb of Columbus. Wexner has said he completely severed ties with Epstein nearly 12 years ago and accused him of misappropriating “vast sums” of his fortune.

Wexner offered an apology at the opening address of L Brands’ annual investor day last fall, saying he was “embarrassed” by his former ties with Epstein.

Wexner is the longest-serving CEO of an S&P 500 company. He founded what would eventually become L Brands in 1963 with The Limited retail chain, according to the company’s website. Wexner owns approximately 16.71 percent of L Brands, according to FactSet.

Mike Robbins, a San Francisco-based corporate culture expert who has advised chains including Gap and Sephora, said the team at Victoria’s Secret would have to retrain workers and hire more people with diverse voices.

“They have a lot of work to do — within the company and also outside with the customers,” Robbins said. “The companies that are able to have (a) great culture attract the best employees.”