Retail in Saudi Arabia

Abstract
Retail in Saudi Arabia witnessed a strong recovery in domestic demand as the remaining COVID-19 restrictions were lifted. Sales also benefited from an increase in retail space in 2022 with a significant number of new outlets opening, including within major shopping centres. For the first time in two years, Saudi Arabia allowed over one million pilgrims to perform Hajj in 2022. Alongside the return of religious pilgrims the government also increased its focus on increasing tourism in the Kingdom,...

Euromonitor International's Retail in Saudi Arabia report offers insight into key trends and developments driving the industry. The report examines all retail channels to provide sector insight. Channels include hypermarkets, supermarkets, discounters, convenience stores, mixed retailers, health and beauty retailers, clothing and footwear retailers, furniture and furnishing stores, DIY and hardware stores, durable goods retailers, leisure and personal goods retailers. There are profiles of leading retailers, with analysis of their performance and the challenges they face. There is also analysis of non-store retailing: vending; homeshopping; internet retailing; direct selling, as available.

Product coverage: Retail E-Commerce, Retail Offline.

Data coverage: market sizes (historic and forecasts), company shares, brand shares and distribution data.

Why buy this report?
* Get a detailed picture of the Retail market;
* Pinpoint growth sectors and identify factors driving change;
* Understand the competitive environment, the market’s major players and leading brands;
* Use five-year forecasts to assess how the market is predicted to develop.

Content
Retail in Saudi Arabia
April 2023

List Of Contents And Tables

RETAIL IN SAUDI ARABIA
EXECUTIVE SUMMARY
Retail in 2022: The big picture
Inflation affects consumer behaviour
E-commerce boom
What next for retail?
OPERATING ENVIRONMENT
Informal retail
Opening hours for physical retail
Summary 1 Standard Opening Hours by Channel Type 2022
Seasonality
Ramadan and Eid-al Fitr
National day
Back to school
White Friday
MARKET DATA
Table 1 Sales in Retail by Retail Offline vs Retail E-Commerce: Value 2017-2022
Table 2 Sales in Retail by Retail Offline vs Retail E-Commerce: % Value Growth 2017-2022
Table 3 Sales in Retail Offline by Channel: Value 2017-2022
Table 4 Sales in Retail Offline by Channel: % Value Growth 2017-2022
Table 5 Retail Offline Outlets by Channel: Units 2017-2022
Table 6 Retail Offline Outlets by Channel: % Unit Growth 2017-2022
Table 7 Sales in Retail E-Commerce by Product: Value 2017-2022
Table 8 Sales in Retail E-Commerce by Product: % Value Growth 2017-2022
Table 9 Grocery Retailers: Value Sales, Outlets and Selling Space 2017-2022
Table 10 Grocery Retailers: Value Sales, Outlets and Selling Space: % Growth 2017-2022
Table 11 Sales in Grocery Retailers by Channel: Value 2017-2022
Table 12 Sales in Grocery Retailers by Channel: % Value Growth 2017-2022
Table 13 Grocery Retailers Outlets by Channel: Units 2017-2022
Table 14 Grocery Retailers Outlets by Channel: % Unit Growth 2017-2022
Table 15 Non-Grocery Retailers: Value Sales, Outlets and Selling Space 2017-2022
Table 16 Non-Grocery Retailers: Value Sales, Outlets and Selling Space: % Growth 2017-2022
Table 17 Sales in Non-Grocery Retailers by Channel: Value 2017-2022
Table 18 Sales in Non-Grocery Retailers by Channel: % Value Growth 2017-2022
Table 19 Non-Grocery Retailers Outlets by Channel: Units 2017-2022
Table 20 Non-Grocery Retailers Outlets by Channel: % Unit Growth 2017-2022
Table 21 Retail GBO Company Shares: % Value 2018-2022
Table 22 Retail GBN Brand Shares: % Value 2019-2022
Table 23 Retail Offline GBO Company Shares: % Value 2018-2022
Table 24 Retail Offline GBN Brand Shares: % Value 2019-2022
Table 25 Retail Offline LBN Brand Shares: Outlets 2019-2022
Table 26 Retail E-Commerce GBO Company Shares: % Value 2018-2022
Table 27 Retail E-Commerce GBN Brand Shares: % Value 2019-2022
Table 28 Grocery Retailers GBO Company Shares: % Value 2018-2022
Table 29 Grocery Retailers GBN Brand Shares: % Value 2019-2022
Table 30 Grocery Retailers LBN Brand Shares: Outlets 2019-2022
Table 31 Non-Grocery Retailers GBO Company Shares: % Value 2018-2022
Table 32 Non-Grocery Retailers GBN Brand Shares: % Value 2019-2022
Table 33 Non-Grocery Retailers LBN Brand Shares: Outlets 2019-2022
Table 34 Forecast Sales in Retail by Retail Offline vs Retail E-Commerce: Value 2022-2027
Table 35 Forecast Sales in Retail by Retail Offline vs Retail E-Commerce: % Value Growth 2022-2027
Table 36 Forecast Sales in Retail Offline by Channel: Value 2022-2027
Table 37 Forecast Sales in Retail Offline by Channel: % Value Growth 2022-2027
Table 38 Forecast Retail Offline Outlets by Channel: Units 2022-2027
Table 39 Forecast Retail Offline Outlets by Channel: % Unit Growth 2022-2027
Table 40 Forecast Sales in Retail E-Commerce by Product: Value 2022-2027
Table 41 Forecast Sales in Retail E-Commerce by Product: % Value Growth 2022-2027
Table 42 Grocery Retailers Forecasts: Value Sales, Outlets and Selling Space 2022-2027
Table 43 Grocery Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2022-2027
Table 44 Forecast Sales in Grocery Retailers by Channel: Value 2022-2027
Table 45 Forecast Sales in Grocery Retailers by Channel: % Value Growth 2022-2027
Table 46 Forecast Grocery Retailers Outlets by Channel: Units 2022-2027
Table 47 Forecast Grocery Retailers Outlets by Channel: % Unit Growth 2022-2027
Table 48 Non-Grocery Retailers Forecasts: Value Sales, Outlets and Selling Space 2022-2027
Table 49 Non-Grocery Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2022-2027
Table 50 Forecast Sales in Non-Grocery Retailers by Channel: Value 2022-2027
Table 51 Forecast Sales in Non-Grocery Retailers by Channel: % Value Growth 2022-2027
Table 52 Forecast Non-Grocery Retailers Outlets by Channel: Units 2022-2027
Table 53 Forecast Non-Grocery Retailers Outlets by Channel: % Unit Growth 2022-2027
DISCLAIMER
SOURCES
Summary 2 Research Sources
CONVENIENCE RETAILERS IN SAUDI ARABIA
KEY DATA FINDINGS
2022 DEVELOPMENTS
Growth supported by Saudis returning to their busy pre-pandemic lifestyles
Price increases put a dampener on growth while some consumers continue to use delivery apps
Location is key as new Danube Express outlets open in Jeddah and Makkah
PROSPECTS AND OPPORTUNITIES
Partnerships with delivery applications could support the growth of convenience stores
Further expansion predicted as demand grows
More dependence on local suppliers
CHANNEL DATA
Table 54 Convenience Retailers: Value Sales, Outlets and Selling Space 2017-2022
Table 55 Convenience Retailers: Value Sales, Outlets and Selling Space: % Growth 2017-2022
Table 56 Sales in Convenience Retailers by Channel: Value 2017-2022
Table 57 Sales in Convenience Retailers by Channel: % Value Growth 2017-2022
Table 58 Convenience Retailers GBO Company Shares: % Value 2018-2022
Table 59 Convenience Retailers GBN Brand Shares: % Value 2019-2022
Table 60 Convenience Retailers LBN Brand Shares: Outlets 2019-2022
Table 61 Convenience Retailers Forecasts: Value Sales, Outlets and Selling Space 2022-2027
Table 62 Convenience Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2022-2027
Table 63 Forecast Sales in Convenience Retailers by Channel: Value 2022-2027
Table 64 Forecast Sales in Convenience Retailers by Channel: % Value Growth 2022-2027
DISCOUNTERS IN SAUDI ARABIA
KEY DATA FINDINGS
2022 DEVELOPMENTS
Discounters sees a steep decline in sales as Al Dukan closes stores in 2022
Discounters facing strong competition
Al Dukan retains a monopoly in the discounters channel
PROSPECTS AND OPPORTUNITIES
Competition with hypermarkets remains a potential threat to growth
Potential expansion into areas outside urban centres
New players expected to enter the market
CHANNEL DATA
Table 65 Discounters: Value Sales, Outlets and Selling Space 2017-2022
Table 66 Discounters: Value Sales, Outlets and Selling Space: % Growth 2017-2022
Table 67 Discounters GBO Company Shares: % Value 2018-2022
Table 68 Discounters GBN Brand Shares: % Value 2019-2022
Table 69 Discounters LBN Brand Shares: Outlets 2019-2022
Table 70 Discounters Forecasts: Value Sales, Outlets and Selling Space 2022-2027
Table 71 Discounters Forecasts: Value Sales, Outlets and Selling Space: % Growth 2022-2027
HYPERMARKETS IN SAUDI ARABIA
KEY DATA FINDINGS
2022 DEVELOPMENTS
Hypermarkets sees declining sales as consumer shopping behaviour shifts in response to the lifting of COVID-19 measures
Competition intensifying as leading players invest in opening new outlets
Strong competition pushes hypermarkets to introduce discounts and promotions
PROSPECTS AND OPPORTUNITIES
Leading operators eye expansion and development plans
Hypermarkets set to see more investment in digitisation as consumers increasingly shift online
Focus shifting to local products as part of Saudi Arabia’s Vision 2030 strategy
CHANNEL DATA
Table 72 Hypermarkets: Value Sales, Outlets and Selling Space 2017-2022
Table 73 Hypermarkets: Value Sales, Outlets and Selling Space: % Growth 2017-2022
Table 74 Hypermarkets GBO Company Shares: % Value 2018-2022
Table 75 Hypermarkets GBN Brand Shares: % Value 2019-2022
Table 76 Hypermarkets LBN Brand Shares: Outlets 2019-2022
Table 77 Hypermarkets Forecasts: Value Sales, Outlets and Selling Space 2022-2027
Table 78 Hypermarkets Forecasts: Value Sales, Outlets and Selling Space: % Growth 2022-2027
SUPERMARKETS IN SAUDI ARABIA
KEY DATA FINDINGS
2022 DEVELOPMENTS
Return of religious pilgrims and tourists helps offset the impact of inflation
Supermarkets face strong competition from e-commerce and other channels
Al Othaim remains the leader with further outlet openings seen in 2022
PROSPECTS AND OPPORTUNITIES
Discounters create a potential threat but q-commerce presents new opportunities
More supermarkets are expected to open as Saudi Arabia looks to increase the number of visitors to the Kingdom
Supermarkets will need to invest in modernising their stores and offering additional products and services
CHANNEL DATA
Table 79 Supermarkets: Value Sales, Outlets and Selling Space 2017-2022
Table 80 Supermarkets: Value Sales, Outlets and Selling Space: % Growth 2017-2022
Table 81 Supermarkets GBO Company Shares: % Value 2018-2022
Table 82 Supermarkets GBN Brand Shares: % Value 2019-2022
Table 83 Supermarkets LBN Brand Shares: Outlets 2019-2022
Table 84 Supermarkets Forecasts: Value Sales, Outlets and Selling Space 2022-2027
Table 85 Supermarkets Forecasts: Value Sales, Outlets and Selling Space: % Growth 2022-2027
SMALL LOCAL GROCERS IN SAUDI ARABIA
KEY DATA FINDINGS
2022 DEVELOPMENTS
Lifting of COVID-19 restrictions boosts sales through small local grocers in 2022
Modern grocery retailers and e-commerce present a significant threat as consumers go in search of value and convenience
Saudi Arabia’s Vision 2030 strategy puts pressure on some traders
PROSPECTS AND OPPORTUNITIES
Strong competition from other channels likely to undermine the growth of small local grocers
Small local grocers expected to increasingly focus on the use of local suppliers
Modernisation programmes represent a potential threat to future sales
CHANNEL DATA
Table 86 Small Local Grocers: Value Sales, Outlets and Selling Space 2017-2022
Table 87 Small Local Grocers: Value Sales, Outlets and Selling Space: % Growth 2017-2022
Table 88 Small Local Grocers Forecasts: Value Sales, Outlets and Selling Space 2022-2027
Table 89 Small Local Grocers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2022-2027
APPAREL AND FOOTWEAR SPECIALISTS IN SAUDI ARABIA
KEY DATA FINDINGS
2022 DEVELOPMENTS
Only the strong companies remained
Tourism supports growth
Buy Now Pay Later services support spending
PROSPECTS AND OPPORTUNITIES
A bright outlook for apparel and footwear specialists with new store openings on the horizon
Local brands could receive support
E-commerce expected to play a key role in the growth of apparel and footwear
CHANNEL DATA
Table 90 Apparel and Footwear Specialists: Value Sales, Outlets and Selling Space 2017-2022
Table 91 Apparel and Footwear Specialists: Value Sales, Outlets and Selling Space: % Growth 2017-2022
Table 92 Apparel and Footwear Specialists GBO Company Shares: % Value 2018-2022
Table 93 Apparel and Footwear Specialists GBN Brand Shares: % Value 2019-2022
Table 94 Apparel and Footwear Specialists LBN Brand Shares: Outlets 2019-2022
Table 95 Apparel and Footwear Specialists Forecasts: Value Sales, Outlets and Selling Space 2022-2027
Table 96 Apparel and Footwear Specialists Forecasts: Value Sales, Outlets and Selling Space: % Growth 2022-2027
APPLIANCES AND ELECTRONICS SPECIALISTS IN SAUDI ARABIA
KEY DATA FINDINGS
2022 DEVELOPMENTS
Appliances and electronics specialists see strong performance in 2022
Tourism and entertainment seasons supports growth
BNPL provides a new means of payment but competition from e-commerce grows
PROSPECTS AND OPPORTUNITIES
Increasing number of residential properties and units will fuel sales
E-commerce giants present a big threat to appliances and electronics specialists
Tourism and entertainment seasons to support growth, while tech-savvy locals will look for the latest innovation
CHANNEL DATA
Table 97 Appliances and Electronics Specialists: Value Sales, Outlets and Selling Space 2017-2022
Table 98 Appliances and Electronics Specialists: Value Sales, Outlets and Selling Space: % Growth 2017-2022
Table 99 Appliances and Electronics Specialists GBO Company Shares: % Value 2018-2022
Table 100 Appliances and Electronics Specialists GBN Brand Shares: % Value 2019-2022
Table 101 Appliances and Electronics Specialists LBN Brand Shares: Outlets 2019-2022
Table 102 Appliances and Electronics Specialists Forecasts: Value Sales, Outlets and Selling Space 2022-2027
Table 103 Appliances and Electronics Specialists Forecasts: Value Sales, Outlets and Selling Space: % Growth 2022-2027
HEALTH AND BEAUTY SPECIALISTS IN SAUDI ARABIA
KEY DATA FINDINGS
2022 DEVELOPMENTS
Social media drives sales growth
Inflation and high disposable incomes
New store openings seen as Al Nahdi Medical Co maintains the lead
PROSPECTS AND OPPORTUNITIES
Bright outlook for health and beauty specialists as visitors return to the Kingdom
Delivering competitive prices could be key to expansion within the pharmacies channel
Social media presents strong marketing opportunities but e-commerce threatens store-based sales
CHANNEL DATA
Table 104 Health and Beauty Specialists: Value Sales, Outlets and Selling Space 2017-2022
Table 105 Health and Beauty Specialists: Value Sales, Outlets and Selling Space: % Growth 2017-2022
Table 106 Sales in Health and Beauty Specialists by Channel: Value 2017-2022
Table 107 Sales in Health and Beauty Specialists by Channel: % Value Growth 2017-2022
Table 108 Health and Beauty Specialists GBO Company Shares: % Value 2018-2022
Table 109 Health and Beauty Specialists GBN Brand Shares: % Value 2019-2022
Table 110 Health and Beauty Specialists LBN Brand Shares: Outlets 2019-2022
Table 111 Health and Beauty Specialists Forecasts: Value Sales, Outlets and Selling Space 2022-2027
Table 112 Health and Beauty Specialists Forecasts: Value Sales, Outlets and Selling Space: % Growth 2022-2027
Table 113 Forecast Sales in Health and Beauty Specialists by Channel: Value 2022-2027
Table 114 Forecast Sales in Health and Beauty Specialists by Channel: % Value Growth 2022-2027
HOME PRODUCTS SPECIALISTS IN SAUDI ARABIA
KEY DATA FINDINGS
2022 DEVELOPMENTS
Growth slows in 2022 as some households face financial pressures
Real estate development supports demand for home products while consumers go in search of the best deals
Social media fuels demand while BNPL services support sales
PROSPECTS AND OPPORTUNITIES
Expansion and new store openings predicted with IKEA expected to strengthen its position
Home makeovers and an increase in new homes should drive sales
Rising home ownership should boost demand for home products specialists
CHANNEL DATA
Table 115 Home Products Specialists: Value Sales, Outlets and Selling Space 2017-2022
Table 116 Home Products Specialists: Value Sales, Outlets and Selling Space: % Growth 2017-2022
Table 117 Sales in Home Products Specialists by Channel: Value 2017-2022
Table 118 Sales in Home Products Specialists by Channel: % Value Growth 2017-2022
Table 119 Home Products Specialists GBO Company Shares: % Value 2018-2022
Table 120 Home Products Specialists GBN Brand Shares: % Value 2019-2022
Table 121 Home Products Specialists LBN Brand Shares: Outlets 2019-2022
Table 122 Home Products Specialists Forecasts: Value Sales, Outlets and Selling Space 2022-2027
Table 123 Home Products Specialists Forecasts: Value Sales, Outlets and Selling Space: % Growth 2022-2027
Table 124 Forecast Sales in Home Products Specialists by Channel: Value 2022-2027
Table 125 Forecast Sales in Home Products Specialists by Channel: % Value Growth 2022-2027
GENERAL MERCHANDISE STORES IN SAUDI ARABIA
KEY DATA FINDINGS
2022 DEVELOPMENTS
Buy Now Pay Later services receive growing interest with RedTag and Centrepoint benefiting from their value positioning
Tourism and entertainment seasons supports growth while variety stores benefit from strong value positioning
Social media fuelling and informing market demand
PROSPECTS AND OPPORTUNITIES
General merchandise stores likely to face strong competition from e-commerce
Tourism should support the growth of department stores
New outlets and new technology
CHANNEL DATA
Table 148 General Merchandise Stores: Value Sales, Outlets and Selling Space 2017-2022
Table 149 General Merchandise Stores: Value Sales, Outlets and Selling Space: % Growth 2017-2022
Table 150 Sales in General Merchandise Stores by Channel: Value 2017-2022
Table 151 Sales in General Merchandise Stores by Channel: % Value Growth 2017-2022
Table 152 General Merchandise Stores GBO Company Shares: % Value 2018-2022
Table 153 General Merchandise Stores GBN Brand Shares: % Value 2019-2022
Table 154 General Merchandise Stores LBN Brand Shares: Outlets 2019-2022
Table 155 General Merchandise Stores Forecasts: Value Sales, Outlets and Selling Space 2022-2027
Table 156 General Merchandise Stores Forecasts: Value Sales, Outlets and Selling Space: % Growth 2022-2027
Table 157 Forecast Sales in General Merchandise Stores by Channel: Value 2022-2027
Table 158 Forecast Sales in General Merchandise Stores by Channel: % Value Growth 2022-2027
DIRECT SELLING IN SAUDI ARABIA
KEY DATA FINDINGS
2022 DEVELOPMENTS
Price increase of consumer goods
Beauty and personal care direct selling faces strong competition with e-commerce
Rising health awareness supports the growth of bottled water within direct selling
PROSPECTS AND OPPORTUNITIES
Social media and e-commerce present new opportunities but direct selling will remain about the personal touch
Bottled water is expected to continue dominating direct selling
Beauty and personal care direct selling facing strong competition
CHANNEL DATA
Table 126 Direct Selling by Product: Value 2017-2022
Table 127 Direct Selling by Product: % Value Growth 2017-2022
Table 128 Direct Selling GBO Company Shares: % Value 2018-2022
Table 129 Direct Selling GBN Brand Shares: % Value 2019-2022
Table 130 Direct Selling Forecasts by Product: Value 2022-2027
Table 131 Direct Selling Forecasts by Product: % Value Growth 2022-2027
VENDING IN SAUDI ARABIA
KEY DATA FINDINGS
2022 DEVELOPMENTS
Lifting of COVID-19 restrictions boosts vending sales
Rising health awareness supports demand for healthy food and drinks vending machines
New shopping malls create new vending opportunities
PROSPECTS AND OPPORTUNITIES
Vending full of potential as tourism increases and new shopping and entertainment opportunities arise
Cash-only vending machines expected to disappear as Saudi Arabia moves towards becoming a cashless society
Rising demand for healthier options
CHANNEL DATA
Table 132 Vending by Product: Value 2017-2022
Table 133 Vending by Product: % Value Growth 2017-2022
Table 134 Vending GBO Company Shares: % Value 2018-2022
Table 135 Vending GBN Brand Shares: % Value 2019-2022
Table 136 Vending Forecasts by Product: Value 2022-2027
Table 137 Vending Forecasts by Product: % Value Growth 2022-2027
RETAIL E-COMMERCE IN SAUDI ARABIA
KEY DATA FINDINGS
2022 DEVELOPMENTS
E-commerce continued to boom
Inflation affecting consumer shopping behaviour to the benefit of e-commerce
High internet access supports demand while Amazon and Noon compete for the lead
PROSPECTS AND OPPORTUNITIES
E-commerce boom to continue supported by government investment
Stronger competition predicted to be seen as players invest in new technology and innovations
The challenge of product assortments’ limited size
CHANNEL DATA
Table 138 Retail E-Commerce by Channel: Value 2017-2022
Table 139 Retail E-Commerce by Channel: % Value Growth 2017-2022
Table 140 Retail E-Commerce by Product: Value 2017-2022
Table 141 Retail E-Commerce by Product: % Value Growth 2017-2022
Table 142 Retail E-Commerce GBO Company Shares: % Value 2018-2022
Table 143 Retail E-Commerce GBN Brand Shares: % Value 2019-2022
Table 144 Forecast Retail E-Commerce by Channel: Value 2022-2027
Table 145 Forecast Retail E-Commerce by Channel: % Value Growth 2022-2027
Table 146 Forecast Retail E-Commerce by Product: Value 2022-2027
Table 147 Forecast Retail E-Commerce by Product: % Value Growth 2022-2027