|
Forecast
Period
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2018-2028
|
|
Market
Size (2022)
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USD5.80
Billion
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CAGR
(2023-2028)
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15.62%
|
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Fastest
Growing Segment
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Store-Based
Retailing
|
Market Overview
Bahrain Retail Market has
valued at USD5.80 Billion in 2022 and is anticipated to project robust growth
in the forecast period with a CAGR of 15.62% through 2028. The market for Bahrain
retail is growing with various factors such as increasing economic growth of
Bahrain, rising tourism and trade, growing populations, changing consumer
preference, effective marketing and advertising strategy are the factors
driving the Bahrain retail market during the forecast period.
Key Market Drivers
Rising
Tourism and Hospitality
Tourism and hospitality
can have a significant impact on increasing the retail market in Bahrain. Tourists
visiting Bahrain often have discretionary income to spend on shopping, dining,
and entertainment. This influx of visitors can lead to higher demand for retail
products, ranging from souvenirs and clothing to electronics and luxury goods.
In addition, tourism brings in a diverse group of visitors with varying
preferences and tastes. Retailers can capitalize on this by offering a wide
range of products to cater to different demographics, boosting overall sales. Tourist
attractions, hotels, and entertainment venues create hubs of activity that
attract both tourists and locals. This increased foot traffic benefits
retailers located in these areas, as it exposes their products to a larger
audience. Moreover, many tourists are interested in shopping for brands that
might be unavailable or more expensive in their home countries. This leads to
the popularity of outlet malls and shopping centers, where tourists can find
discounted branded goods. For instance, the launch of Bahrain shopping festival
attracts many tourists in Bahrain. The success of project like Avenues Mall has
influenced the demand for retail infrastructure which are also equipped with recreational
facilities. Thus, while tourism and hospitality can have positive effects on
the Bahrain retail market in the coming years, there can also be fluctuations
in demand based on factors like seasonal tourism, global economic conditions,
and geopolitical events.
Changing
Consumer Preference
Changing consumer
preferences play a significant role in driving the retail market in Bahrain, as
they do in many other regions. As consumers increasingly prefer the convenience
of online shopping, the growth of e-commerce platforms can drive retail sales.
Retailers adapting to this trend by offering online purchasing options and
reliable delivery services can tap into a larger consumer base. Moreover, consumers
are looking for personalized shopping experiences. Retailers that utilize data
analytics and AI to understand and cater to individual preferences can enhance
customer loyalty and increase sales. In addition, consumers are shifting
towards valuing experiences over material possessions. Retail spaces that provide
experiential elements, such as interactive displays, events, and entertainment,
can draw in customers and encourage longer visits of customers in Bahrain. In
addition, consumers value convenience and efficiency. Retailers offering
options like click-and-collect, curbside pickup, and one-day delivery can meet
these preferences and attract time-conscious shoppers. Thus, with the changing
consumer preferences the Bahrain retail market is expanding in the coming
years.
Marketing
and Advertising
Marketing and advertising
play a crucial role in increasing the Bahrain retail market by creating
awareness, driving consumer interest, and influencing purchasing decisions.
These Marketing and advertising campaigns increase the visibility of retail
brands and products. Consistent brand exposure makes consumers more likely to
consider these brands when making purchasing decisions. Moreover, engaging
marketing campaigns, whether through social media, interactive content, or
events, encourage consumers to actively participate and interact with the
brand, fostering a stronger connection with consumers driving Bahrain retail
market during the forecast period. However, advertising informs consumers about
new products, promotions, and offerings. This awareness can lead to increased
foot traffic and online traffic to retail stores or websites. Thus, effective
marketing and advertising strategies can expand the Bahrain retail market
during the forecast period.
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Key Market Challenges
Economic
Dependence on Oil
Bahrain, like many other
countries in the Gulf region, has been heavily dependent on oil revenues.
Fluctuations in oil prices can significantly impact consumer spending, thereby
affecting the retail sector. Bahrain's economy heavily relies on oil exports,
which can lead to income volatility due to fluctuations in global oil prices.
When oil prices are low, government revenues decrease, potentially leading to
reduced public spending and consumer purchasing power. This, in turn, can
affect retail sales as consumers may cut back on discretionary spending.
Moreover, when consumers are uncertain about the future, they tend to be more
cautious with their spending, which can impact the overall retail sector. Lower
oil revenues may lead to reduced government spending on infrastructure
projects, public services, and other initiatives. These projects could have a
positive impact on the retail sector by increasing consumer footfall and
economic activity. Thus, the direct impact of economic dependence on oil might
not be on the retail market itself, its indirect effects on consumer behavior,
purchasing power, and overall economic stability can ripple through the retail
sector.
Growth
in E-commerce
The rise of e-commerce and
online marketplaces has disrupted traditional retail models. Retailers need to
establish a strong online presence to cater to changing consumer behavior. E-commerce
growth can pose both challenges and opportunities for the retail sector in
Bahrain. As traditional brick-and-mortar retailers face competition from online
retailers that offer convenience, a wider range of products, and often lower
prices due to reduced overhead costs. As more consumers embrace online
shopping, traditional retailers may experience a decrease in foot traffic and
in-store sales, impacting their revenue and profitability. In addition,
establishing an efficient e-commerce operation requires a robust logistics and
delivery system, which can be challenging to set up and maintain, especially
for smaller retailers.
Key Market Trends
Omnichannel
Retail
Retailers were focusing on
providing a seamless shopping experience across various channels, integrating
physical stores with online platforms. Click-and-collect services, where
customers can order online and pick up in-store, were becoming popular. Omnichannel
retail is a strategy that aims to provide a seamless and integrated shopping
experience for customers across various channels, both online and offline. This
approach recognizes that modern consumers interact with retailers through
multiple touchpoints, such as physical stores, websites, mobile apps, social
media, and more. By leveraging omnichannel strategies, retailers in Bahrain can
enhance customer engagement, improve customer satisfaction, and ultimately
drive growth in the retail market. In addition, omnichannel retail allows
customers to switch between different channels while maintaining a consistent
shopping experience. Moreover, by being present on multiple platforms,
retailers can engage with customers in various ways. Social media interactions,
personalized email campaigns, and targeted promotions can all contribute to
keeping customers engaged and informed about the latest products and offers.
Hence, omnichannel retailing can positively impact the Bahrain retail market by
creating a more customer-centric approach, enhancing engagement, and providing
a competitive edge.
Gaining
Popularity of Subscription Based Services
Subscription services have
gained popularity worldwide, including in Bahrain, due to their convenience,
personalization, and value proposition. These services offer consumers regular
access to products or services through recurring payments. This trend was observed across various
product categories, from beauty products to food and beverages. Subscription
models provide retailers with consistent and predictable revenue streams. This
stability can be especially beneficial for businesses in the retail sector,
where seasonal fluctuations and economic uncertainties can impact sales.
Predictable revenue allows retailers to plan better for inventory, staffing,
and marketing efforts. Moreover, Subscribers tend to develop a stronger sense
of loyalty to brands they subscribe to. By consistently providing value and
meeting customer needs, subscription services can foster long-term
relationships and reduce customer churn. Thus, the growth potential of
subscription services in the Bahrain retail market, retailers should focus on
creating compelling value propositions, offering flexible subscription plans,
ensuring seamless customer experiences, and consistently delivering value to
subscribers that resonate with Bahraini consumers and contribute to Bahrain
retail market growth.
Segmental Insights
Type Insights
With a significant market share in 2022, the store-based
retailing segment has a significant share and is predicted to continue
expanding over the coming years. In Bahrain, store-based retailing is
more popular due to several reasons. For instance, In Bahrain, shopping is
often seen as a social activity. People enjoy visiting physical stores with family
and friends, making it a communal experience. This cultural aspect of shopping
fosters a sense of community and connection, which is difficult to replicate in
online shopping. Also, store-based retailing allows for face-to-face
interactions between customers and store staff. This personal touch can lead to
better customer service, immediate assistance, and the ability to ask questions
about products. This level of interaction can be reassuring and valuable to
shoppers. Thus, store-based retailing continues to hold a significant place in
the shopping habits and preferences of Bahraini consumers.
Regional Insights
The Capital Governorate
region has established itself with a significant revenue share in 2022. This
dominance is expected as the Capital Governorate is the commercial and
financial center of Bahrain. It houses numerous financial institutions,
corporate offices, and business headquarters. This concentration of economic
activity contributes to the generation of wealth and prosperity in the region. The
region is home to many international businesses, including financial services,
oil and gas companies, and multinational corporations. The presence of these
businesses often leads to higher income levels and economic growth. In
addition, Capital Governorate region in Bahrain, which includes the capital
city of Manama, is considered relatively affluent contributing with a major
share in Bahrain retail market during the forecast period.
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Recent Developments
- In 2023, Bahrain
- Batelco, part of the Beyon Group, has revamped all of its retail shops,
adding a self-service digital zone, designed to elevate the customer
retail experience. This step is in line with Batelco’s on-going digital
transformation of its customer journey in multiple touchpoints such as the
website, the Batelco app as well as the retail shops.
- In 2023, City
Centre Bahrain, the premier shopping, entertainment, and lifestyle
destination in the Kingdom, has announced the leasing of 9,000 sq. meters
of retail space with the addition of over 60 brands to its mall retail
portfolio. This will increase the total occupancy rate by 18% within this
year, with fashion brands commanding the highest retail space followed by
Food & Beverage concepts, personal care, and lifestyle brands.
Key Market Players
·
BMMI Group,
·
Ali-Rashid Al-Amin Co,
·
Majid Al Futtaim Group,
·
Lulu Group
International,
·
Jawad Business Group,
·
HHM Group,
·
Aljazira group,
·
Fucom International WLL,
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Almeer Group,
·
Alshaya Group
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By Type
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By Region
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•
Store-Based Retailing
•
Non Store-Based Retailing
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•
Northern Governorate
•
Capital Governorate
•
Muharraq Governorate
•
Southern Governorate
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Report
Scope:
In this report, the Bahrain
Retail Market has been segmented into the following categories, in addition to
the industry trends which have also been detailed below:
- Bahrain Retail Market, By Type:
o Store-Based
Retailing
o Non
Store Retailing
- Bahrain Retail Market, By Region:
o Northern
Governorate
o Capital
Governorate
o Muharraq
Governorate
o Southern
Governorate
Competitive
Landscape
Company
Profiles: Detailed analysis of the major companies present in
the Bahrain Retail Market.
Available
Customizations:
Bahrain Retail market report
with the given market data, Tech Sci Research offers customizations according
to a company's specific needs. The following customization options are
available for the report:
Company
Information
- Detailed
analysis and profiling of additional market players (up to five).
Bahrain Retail Market is an upcoming report to be
released soon. If you wish an early delivery of this report or want to confirm
the date of release, please contact us at [email protected]