Prepare to bid farewell to a number of landmark retail shops? Kuwaiti retailconglomerate Alshaya Group, one of the region’s largest retail franchise operators, will be curtailing its business activity in Egypt on the back of FX pressure and difficult economic conditions, according to an internal note to employees seen by Asharq Business.

The details: Some of the company’s franchises will be gradually exiting the local market and eventually completely shut their doors, while others will decrease operations. British department store Debenhams will be the first to leave Egypt, according to an unnamed retail official cited by the news outlet. All of the store’s physical branches as well as its e-commerce website will no longer be operational by the end of February.

The Body Shop, Mothercare, and Pinkberry are all set to follow suit. A note obtained by Enterprise lists Mothercare, Debenhams, Pinkberry, and Claire’s as being impacted. Other brands including H&M, Victoria's Secret, American Eagle, and Bath & Body Works will remain present in the market, but at a smaller scale, the source added.

By the numbers: The group will shut some 60 of its shops across the country and lay off 375 employees in the process, says Al Arabiya’s economics editor, Obada Alladan (watch, runtime: 3:43), while the note we have seen puts the figure at 450. Following its downsizing plans, the group will have around 100 shops operating in Egypt, 80% of which will be Starbucks branches, he said.

Alshaya doesn’t want to leave: “The group wants to stay present in the Egyptian market, thisis certain … The group wants to wait until economic conditions improve,” Alladan said.

The why? Alshaya cited the “economic situation over the last three years,” as well as aweakening EGP, exchange rate pressures, and soaring inflation for its decision to downsize. The company also faced “difficulty moving hard currency out of Egypt,” Alladan said.

It’s not final? One of the country’s shopping mall operators is in negotiations with the group inhopes of having it rethink its decision, an unnamed official told Asharq.

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