The Children's Place partners with Al Othaim for Saudi Arabia re-enty

Children's wear retailer The Children's Place has entered into a new strategic partnership with Al Othaim Life Company to re-enter the Saudi Arabian market, with initial store openings planned for later this year, including a flagship store in Riyadh.

The partnership represents a significant milestone in The Children's Place's broader international growth strategy, with Al Othaim serving as the retailer's official operating partner in the Kingdom of Saudi Arabia. As such, Al Othaim has been tasked with overseeing the North America specialty retailer's expansion and presence in the region. 

"We are thrilled to partner with Al Othaim as we re-enter the Kingdom of Saudi Arabia," said Muhammad Umair, President and Chief Executive Officer of The Children's Place, in a statement. "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."

The Children's Place eyes Saudi growth as US business faces pressure

“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," said Eli Aoun, Chief Executive Officer of Al Othaim, in a statement. "The Children's Place holds strong relevance in the Saudi market, with significant potential to serve the evolving needs of our customers across all regions and cities in the Kingdom." 

The international expansion push comes 14 years after The Children's Place first launched in Saudi Arabia via franchise deals. The partnership is in line with the retailer's current international business model, which sees it operate across 12 countries through nine franchise and wholesale partners outside the United States.

The re-entry is also linked to the specialty retailer's broader connection to Saudi Arabia. In February 2024, Mithaq Capital SPC, an investment firm linked to the Al-Rajhi family, one of Saudi Arabia's wealthiest dynasties, acquired a controlling 54 percent stake in the children's retailer. The firm injected over 168 million US dollars in loans into the business to keep it afloat. However, despite the capital injection, net sales declined 12.8 percent to 1.209 billion US dollars for FY2025.

With a Saudi majority stakeholder now firmly at the helm of the retailer, The Children's Place's re-entry into the Saudi Arabian market comes at a pivotal time. The retailer retains brand recognition among Saudi consumers from its 2012 launch, while Al Othaim, which operates 27 brands across more than 370 stores in the Kingdom of Saudi Arabia, will offer the local infrastructure and expertise needed to execute the rollout effectively.

The timing of The Children's Place's return to Saudi Arabia also reflects the broader pressures the retailer faces in its home country. Declining mall traffic, the rise of fast-fashion rivals like Shein and Temu, and intensifying competition from big-box retailers have eroded its US business. International expansion through a franchise-style partnership model, which limits the retailer's direct capital exposure, offers a relatively low-risk way to generate new revenue streams while the domestic turnaround continues.