Extra expects a SAR 27 million drop in profit this year after it was forced to close shop

United Electronics Company, Extra, expected a SAR 27 million drop in profit this year after the Trade Ministry had forced the retailer to close down some of its shops, costing the company SAR 150 million in projected sales, the company said in a  statement to the Saudi bourse, Tadawul.

The shops were re-opened but the company had booked provisions as the inventory was higher than the targeted sales, especially those of mobile phone and computers.

The Trade Ministry has recently temporarily closed down 8 Extra retailers across the kingdom because of violations including, not placing prices on as many as 9 goods, offering more than 50 percent discounts and not disclosing it was having sales, according to Argaam.