Kuwait-based retail franchise operator MH Alshaya Co has acquired a strategic stake in Noon, the region’s new ecommerce platform, reported the Arabian Business.
Following this acquisition which stake and value remained undisclosed, Alshaya will become a seller on Noon’s marketplace platform, bringing online its diverse brands portfolio which includes fashion, health, and lifestyle among others.
Mohammed Alshaya, executive chairman of Alshaya, said: "Our partnership with Noon will allow us to expand our customer base, reach new market segments, and participate in the next level of growth in regional ecommerce."
In the past few months, major regional players have been involved in the wave of ecommerce. This dynamism followed the major acquisition of Souq by Amazon, which unleashed a series of separate acquisitions in a way to form an ecommerce arsenal to face Amazon-Souq fortification.
Last March, Alshaya won the ‘Digital Excellence in Retail’ award at the CDO Conclave held in Dubai as part of a wider event aimed at helping organizations in the Middle East navigate their digital transformation. This hints to the future approach the operator will be adopting. Back then, Johnny Morris, director of CRM & Digital at M.H. Alshaya Co. said: "Consumers in this region are avid users of digital platforms”, and Alshaya's central digital team and brand-specific marketers have shaped a powerful digital strategy that we expect to evolve further in the coming years.”