Logicom targets $5m from retail channel

Dedicated retail distribution arm makes $2.6m in first half of 2008, seeking growth through regional expansion

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By  Andrew Seymour Published  October 29, 2008

IT distributor Logicom Dubai’s year-old retail division has pulled in sales of $2.6m during the first six months of the year, figures published by the company have revealed.

Logicom Retail was established as a dedicated division of the company last year to provide distribution services to Middle East IT retail companies.

The spike in first-half sales represents a 79% increase on the $1.45m it banked in the same period last year and puts Logicom firmly on course to achieve revenues of $5m from the retail sector by year-end.

Logicom cites contracts with several tier-one power retailers, including Sharaf DG, Plug-Ins, CompuMe, Jacky’s and Jumbo, as a major reason for the top-line growth. Its retail portfolio currently consists of Linksys wireless products, Microsoft software, Seagate external drives and Kingston flash drives.

“Consistent, strong demand for our broad range of products and solutions is helping drive a healthy, balanced performance,” said Nicholas Argyrides, general manager at Logicom Dubai. “There is a very thin-line between power retailers and mid-sized retailers when it comes to the bottom-line. However, we have been able to maintain an aggressive approach towards both and this has played an important role in registering a positive performance,” he added.

Renu Dhar, who heads up the business unit, says the company is now looking to recreate the model in additional markets throughout the GCC and Levant.

“We have recently invested in infrastructure in other countries and we will soon be present in Kuwait and Qatar,” she revealed. “We are also exploring synergies with hypermarkets in getting IT products to the end-customer. The retail business is definitely a top priority for the organisation, and we are currently enjoying several competitive advantages including a dedicated, retail-oriented team and broad portfolio of quality brands.”

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