The Children’s Place (PLCE) has entered into a strategic partnership with Al Othaim Life Company to re‑establish its presence in Saudi Arabia. Al Othaim will serve as the official operating partner, overseeing retail operations and local market strategy.
Al Othaim, founded in 1998, operates 27 brands across more than 370 stores nationwide and is a subsidiary of Al Othaim Investment Company. The partnership will launch initial store locations in 2026, with a flagship store slated for Riyadh later that year, marking the first phase of a broader rollout across the Kingdom.
The deal expands PLCE’s international footprint beyond its existing 12‑country wholesale and franchise network. It also opens the door for PLCE’s core and subsidiary brands—The Children’s Place, Gymboree, Sugar & Jade, and PJ Place—to reach Saudi consumers for the first time since the brand’s 2012 launch in the country.
PLCE has faced significant financial headwinds in its North American market, reporting a 19.4% decline in net sales to $329.2 million in the fourth quarter of fiscal 2025 and a net loss of $44.6 million, compared with a $8.0 million loss in the prior year. The partnership is part of PLCE’s strategy to grow through capital‑light models such as franchising and licensing, leveraging Al Othaim’s retail network to offset domestic challenges.
“We are thrilled to partner with Al Othaim as we re‑enter the Kingdom of Saudi Arabia,” said Muhammad Umair, President and CEO of PLCE. “This agreement reflects our confidence in the market and our excitement about reconnecting with customers throughout the country. Al Othaim’s deep local expertise and strong retail presence make them an ideal partner for this next chapter.” Eli Aoun, CEO of Al Othaim, added, “We are proud to partner with The Children’s Place to build something truly special in Saudi Arabia—bringing a globally recognized children’s brand closer to Saudi families and delivering an exceptional, accessible, and inspiring retail experience.”
The partnership aligns with Saudi Vision 2030 and the growing kidswear market, which was valued at $3.16 billion in 2025 and is projected to reach $4.85 billion by 2034. PLCE’s entry, backed by a Saudi‑based investment firm that holds a controlling stake, positions the company to tap a market that offers double‑digit growth potential while diversifying its revenue base.
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