Saudi Arabia Retail Market By Size, Share, Trends, Growth, Forecast 2028

Summary

Report Description

Saudi Arabia's retail market is anticipated to project robust growth in the forecast period on account of rising tourism, growing presence on online platforms, an increasing number of retail stores throughout the nation, etc. A retail business sells goods and services to customers in small quantities, either in-store or through online channel mode. Grocery, apparel, drug stores, etc. are examples of retail. It also includes an online retailer channel. However, it does not include service retailers such as Beauty Salons, Dry Cleaners, etc.

Due to rising inflation and consumers' increased spending on essentials, retailers in the Gulf Cooperation Council region are reporting greater turnover rates. After the Covid-19 limits were lifted in the first half of the year, Saudi Arabia's retail sector saw an expansion in retail space and a robust recovery in domestic demand. The value of point-of-sale transactions increased by 16% year over year, in April 2022 and May 2022 to a total of USD24.79 billion throughout the kingdom. Riyadh's entire retail stock expanded by 55,000 square meters of gross leasable area (GLA), Jeddah's retail space increased by 16,000 square meters to 1.7 million square meters, and Makkah's retail space increased by 17,500 square meters to 1.4 million square meters in the first half of the year 2022.

Moreover, major retail chains in the country have observed significant growth in the year 2022. For instance, in the first quarter of 2022, Abdullah Al Othaim Markets Co. established nine new branches, enhancing its branch network by 7.31%. Additionally, Al Othaim's first-quarter profit for the year 2022 increased from USD15.57 million in the same period in 2021 to roughly USD24.57 million. Also, BinDawood, a Saudi Arabian retailer, reported a 5.4% increase in first-quarter profit on higher revenue, in 2022.

Moreover, companies have been improving their strategies to enhance their services and attract a consumer base. For instance, in 2022, Abdullah Al-Othaim Markets Company launched a strategic plan for its retail business in Saudi Arabia until 2026, intending to provide a variety of options for the shopper with a unique experience, through the company’s sales points, supermarkets, developed corners, wholesale and online platforms.

Also, according to a study from the investment ministry, net foreign direct investment in Saudi Arabia increased by 257.2% in 2021, according to the official Saudi Press Agency. Also, according to SPA, the wholesale and retail sector continues to dominate the issuing of foreign investment licenses, posting 1,481 licenses in the second half of 2021.

Rising Tourism Will Fuel the Market Growth

Also, in 2022, KSA allowed over one million pilgrims to perform Hajj after two years. This is anticipated to assist the kingdom reach its goal of tripling international visitors to 12 million while also boosting Makkah's retail sector. Overall, the increased visitor count is expected to benefit Saudi Arabia's retail industry. International tourist arrivals in the country recorded an increase of approximately 575%, as compared to 2021, reaching 3.6 million visitors in the second quarter of 2022. Also, Saudi Arabia is anticipated to experience the fastest-growing tourist sector in the Middle East over the next ten years, according to the World Travel & Tourism Council (WTTC). Hence, the growth in the tourism sector in Saudi Arabia will lead to growth in the retail market of the country.

New Store Launches by Market Players Aiding the Market Growth

Several retail chains have been emphasizing expanding their presence in Saudi Arabia by launching their new retail stores in the country. For instance, in 2022, Dubai-based grocery retailer, Spinneys, signed a partnership agreement with Abdul Mohsen Al Hokair Holding Group for the opening of its first store in Saudi Arabia in the year 2023. Similarly, in 2022, Lulu Group launched its 29th store in the Al Ruwais district of Saudi Arabia. Also, in 2020, BinDawood announced the launch of a new Danube store in Jeddah, located on Fayfa Avenue on Prince Mohammed Bin Abdulaziz Street. Hence, this factor is anticipated to further expand the market growth during the forecast period.

Unique Marketing Strategies Will Boost the Market Growth

Various retail companies have been improving their marketing strategies to enhance their profits. For instance, in 2022, Abdullah Al-Othaim Markets launched a weeks-long marketing campaign. Intending to reward its loyal customers and forge closer ties with them, the company ran an 8-week campaign with the slogan "Imagine for 65 years, and Al-Othaim is part of you" that included Monday specials and affordable rates. More than USD1.60 million were invested in the marketing campaign to take the campaign through to completion. Moreover, in 2022, Majid Al Futtaim introduced an innovative entertainment loyalty program in Saudi Arabia. Members of 'SHARE' have access to the entire Kingdom's LEC portfolio through Majid Al Futtaim to earn and redeem points. These factors are projected to positively impact the overall growth of the Saudi Arabia retail market.

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Market Segmentation

The Saudi Arabia retail market is segmented based on type, retail store type, region, and competitional landscape. Based on type, the market is further fragmented into food retail v/s non-food retail. Based on the retail store type, the market is segmented into supermarkets/hypermarkets, online, Baqala stores, departmental stores, exclusive stores, convenience stores, and others (specialty stores, drugstores/pharmacies, etc.). The market analysis also studies the regional segmentation to devise regional market segmentation, divided among western, eastern, northern & central, and southern regions.

Company Profiles

Lulu Group International (EMKE Group), Abdullah Al Othaim Markets Co., Panda Retail Co (Savola Group), Fawaz Abdul Aziz Al Hokair & Co., Majid Al Futtaim Retail LLC, Choithram LLC, Balsharaf Group, Bin Dawood Holding Company SJSC, Al-Raya Foot Stuff LTD., AL-Sadhan are among the major market players in Saudi Arabian platform that lead the market growth of the Saudi Arabia retail market.

Attribute	Details
Base Year	2022
Historical Years	2018 – 2021
Estimated Year	2023
Forecast Period	2024 – 2028
Quantitative Units	Revenue in USD Million, and CAGR for 2018-2022 and 2023-2028
Report Coverage	Revenue forecast, company share, competitive landscape, growth factors, and trends
Segments Covered	Type Retail Store Type Region
Regional Scope	Western, Eastern, Northern & Central, Southern
Key Companies Profiled	Lulu Group International (EMKE Group), Abdullah Al Othaim Markets Co., Panda Retail Co (Savola Group), Fawaz Abdulaziz AlHokair Co., Majid Al Futtaim Retail LLC, Choithram LLC, Balsharaf Group, Bin Dawood Holding Company SJSC, Alraya Foot Stuff LTD., AL-Sadhan
Customization Scope	10% free report customization with purchase. Addition or alteration to country, regional & segment scope.
Pricing and Purchase Options	Avail of customized purchase options to meet your exact research needs. Explore purchase options
Delivery Format	PDF and Excel through Email (We can also provide the editable version of the report in PPT/pdf format on special request)

Report Scope:

In this report, the Saudi Arabia retail market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Saudi Arabia Retail Market, By Type:

Food Retail
Non-Food Retail

Saudi Arabia Retail Market, By Retail Store Type:

Supermarkets/Hypermarkets
Online
Baqala Stores
Departmental Stores
Exclusive Stores
Convenience Stores
Others

Saudi Arabia Retail Market, By Region:

Western
Eastern
Northern & Central
Southern

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Saudi Arabia retail market.

Available Customizations:

With the given market data, TechSci 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).

Table of content

1. Introduction

1.1. Product Overview

1.2. Key Highlights of the Report

1.3. Market Coverage

1.4. Market Segments Covered

1.5. Research Tenure Considered

2. Research Methodology

2.1. Objective of the Study

2.2. Baseline Methodology

2.3. Key Industry Partners

2.4. Major Association and Secondary Sources

2.5. Forecasting Methodology

2.6. Data Triangulation & Validation

2.7. Assumptions and Limitations

3. Executive Summary

3.1. Market Overview

3.2. Market Forecast

3.3. Key Regions

3.4. Key Segments

4. Voice of Customer Analysis

4.1. Sample Size Determination

4.2. Respondent Demographics

4.2.1. By End User

4.2.2. By Age

4.2.3. By Occupation

4.3. Factors Influencing Purchase Decision

4.4. Sources of Information

5. Saudi Arabia Retail Market Outlook

5.1. Market Size & Forecast

5.1.1. By Value

5.2. Market Share & Forecast

5.2.1. By Type Market Share Analysis (Food Retail v/s Non-Food Retail)

5.2.2. By Retail Store Type Market Share Analysis (Supermarkets/Hypermarkets, Online, Baqala Stores, Departmental Stores, Exclusive Stores, Convenience Stores, Others (Specialty Stores, Drugstores/Pharmacies, etc.))

5.2.3. By Regional Market Share Analysis

5.2.3.1. Southern Market Share Analysis

5.2.3.2. Western Market Share Analysis

5.2.3.3. Eastern Market Share Analysis

5.2.3.4. Northern & Central Market Share Analysis

5.2.4. By Company Market Share Analysis

5.3. Saudi Arabia Retail Market Mapping & Opportunity Assessment

5.3.1. By Type Market Mapping & Opportunity Assessment

5.3.2. By Retail Store Type Market Mapping & Opportunity Assessment

5.3.3. By Regional Market Mapping & Opportunity Assessment

6. Western Saudi Arabia Retail Market Outlook

6.1. Market Size & Forecast

6.1.1. By Value

6.2. Market Share & Forecast

6.2.1. By Type Market Share Analysis

6.2.2. By Retail Store Type Market Share Analysis

7. Eastern Saudi Arabia Retail Market Outlook

7.1. Market Size & Forecast

7.1.1. By Value

7.2. Market Share & Forecast

7.2.1. By Type Market Share Analysis

7.2.2. By Retail Store Type Market Share Analysis

8. Northern & Central Saudi Arabia Retail Market Outlook

8.1. Market Size & Forecast

8.1.1. By Value

8.2. Market Share & Forecast

8.2.1. By Type Market Share Analysis

8.2.2. By Retail Store Type Market Share Analysis

9. Southern Saudi Arabia Retail Market Outlook

9.1. Market Size & Forecast

9.1.1. By Value

9.2. Market Share & Forecast

9.2.1. By Type Market Share Analysis

9.2.2. By Retail Store Type Market Share Analysis

10. Market Dynamics

10.1. Drivers

10.1.1. New Store Launches by Market Players

10.1.2. Rising Tourism

10.1.3. Increasing Number of Collaborations & Partnerships

10.2. Challenges

10.2.1. Dynamic Consumer Preference

10.2.2. High Competition

11. Impact of COVID-19 on Saudi Arabia Retail Market

11.1. Impact Assessment Model

11.1.1. Key Segments Impacted

11.1.2. Key Regions Impacted

12. Market Trends & Developments

12.1. Growing Consumer Spending

12.2. Government Initiatives

12.3. Increasing Online Presence of Market Players

12.4. Growing Marketing Campaigns by Companies

12.5. Rising Construction Rate

13. Porter’s Five Forces Model

13.1. Competition Landscape

13.2. Bargaining Power of Buyers

13.3. Bargaining Power of Suppliers

13.4. Threat of New Entrants

13.5. Threat of Substitutes

14. SWOT Analysis

14.1. Strengths

14.2. Weaknesses

14.3. Opportunities

14.4. Threats

15. Policy & Regulatory Landscape

16. Saudi Arabia Economic Profile

17. Competitive Landscape

17.1. Company Profiles

17.1.1. Lulu Group International (EMKE Group)

17.1.1.1. Company Details

17.1.1.2. Product & Services

17.1.1.3. Financials (As Per Availability)

17.1.1.4. Key Market Focus & Geographical Presence

17.1.1.5. Recent Developments

17.1.1.6. Key Management Personnel

17.1.2. Abdullah Al Othaim Markets Co.

17.1.2.1. Company Details

17.1.2.2. Product & Services

17.1.2.3. Financials (As Per Availability)

17.1.2.4. Key Market Focus & Geographical Presence

17.1.2.5. Recent Developments

17.1.2.6. Key Management Personnel

17.1.3. Panda Retail Co (Savola Group)

17.1.3.1. Company Details

17.1.3.2. Product & Services

17.1.3.3. Financials (As Per Availability)

17.1.3.4. Key Market Focus & Geographical Presence

17.1.3.5. Recent Developments

17.1.3.6. Key Management Personnel

17.1.4. Fawaz Abdulaziz AlHokair Co.

17.1.4.1. Company Details

17.1.4.2. Product & Services

17.1.4.3. Financials (As Per Availability)

17.1.4.4. Key Market Focus & Geographical Presence

17.1.4.5. Recent Developments

17.1.4.6. Key Management Personnel

17.1.5. Majid Al Futtaim Retail LLC

17.1.5.1. Company Details

17.1.5.2. Product & Services

17.1.5.3. Financials (As Per Availability)

17.1.5.4. Key Market Focus & Geographical Presence

17.1.5.5. Recent Developments

17.1.5.6. Key Management Personnel

17.1.6. Balsharaf Group

17.1.6.1. Company Details

17.1.6.2. Product & Services

17.1.6.3. Financials (As Per Availability)

17.1.6.4. Key Market Focus & Geographical Presence

17.1.6.5. Recent Developments

17.1.6.6. Key Management Personnel

17.1.7. Bin Dawood Holding Company SJSC

17.1.7.1. Company Details

17.1.7.2. Product & Services

17.1.7.3. Financials (As Per Availability)

17.1.7.4. Key Market Focus & Geographical Presence

17.1.7.5. Recent Developments

17.1.7.6. Key Management Personnel

17.1.8. Alraya Foot Stuff LTD.

17.1.8.1. Company Details

17.1.8.2. Product & Services

17.1.8.3. Financials (As Per Availability)

17.1.8.4. Key Market Focus & Geographical Presence

17.1.8.5. Recent Developments

17.1.8.6. Key Management Personnel

17.1.9. AL-Sadhan

17.1.9.1. Company Details

17.1.9.2. Product & Services

17.1.9.3. Financials (As Per Availability)

17.1.9.4. Key Market Focus & Geographical Presence

17.1.9.5. Recent Developments

17.1.9.6. Key Management Personnel

17.1.10. Choithram LLC

17.1.10.1. Company Details

17.1.10.2. Product & Services

17.1.10.3. Financials (As Per Availability)

17.1.10.4. Key Market Focus & Geographical Presence

17.1.10.5. Recent Developments

17.1.10.6. Key Management Personnel

18. Strategic Recommendations/Action Plan

18.1. Key Focus Areas

18.2. Target Regions

18.3. Target Segment

(Note 1: The companies list can be customized based on the client requirements.)

Figures and Tables

Frequently asked questions

What do you mean by retail market?

''Retail" market means all of the business operations that entail selling products or services to customers directly, typically for domestic or personal use. Retailers come in both institutional and retail forms.

What are the current trends in retailing?

Current trends leading to expansion in the growth of the retail market of Saudi Arabia include a rising tourism rate, increasing consumer spending, a growing number of retail stores around the nation, etc.

How do retail stores make profit?

By offering their services at reasonable gross margins, retailers earn profit. The retail or e-commerce business owners then receive a final net profit once the retail overheads have been covered by these gross margins.

Which are the top ten companies in the Saudi Arabia retail market?

Lulu Group International (EMKE Group), Abdullah Al Othaim Markets Co., Panda Retail Co (Savola Group), Fawaz Abdulaziz AlHokair Co., Majid Al Futtaim Retail LLC, Choithram LLC, Balsharaf Group, Bin Dawood Holding Company SJSC, Alraya Foot Stuff LTD., AL-Sadhan, are some of the top companies in the Saudi Arabia retail market.

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Sakshi Bajaal

Principal Consultant

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Press Release

Saudi Arabia Retail Market to be Boosted by Online Retail During the Forecast Period

Feb, 2023

Increasing standardization, the growing concept of modern retailing, and rising tourism across the nation are the leading factors driving the Saudi Arabia retail market during the projected period.

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