SAUDI ARABIA RETAIL MARKET

INTRODUCTION

Retail refers to the sale of goods or services to specific customers directly. This sets it apart from wholesale, which is the sale of goods to businesses in bulk.  Retail can take many different forms, from e-commerce sites to conventional brick-and-mortar stores. 

Additionally, retailers may work in niche markets like those for electronics, clothing, groceries, or home goods.Retailers frequently engage in direct customer service by offering a space for customers to peruse, try on items, or ask salespeople for assistance. 

Saudi Arabia has been modernising its retail sector and transforming it at the same time.  Hypermarkets and shopping centres remained common retail formats. Significant growthis observed in the e-commerce sector in Saudi Arabia. 

It is well known that Saudi customers preferred high-end and luxury brands. Global lifestyle and fashion brands are well received, particularly in cities where there is a growing market for stylish and fashionable products.

SAUDI ARABIA RETAIL MARKET SIZE AND FORECAST

The Saudi Arabia retail market accounted for $XX Billion in 2023 and is anticipated to reach $XX Billion by 2030, registering a CAGR of XX% from 2024 to 2030.

SAUDI ARABIA RETAIL MARKET DYNAMICS

A number of variables support the Saudi Arabia retail market and are responsible for its expansion and health. One of the main drivers of retail demand in the nation is the rapidly growing middle class and rapidly growing population. 

Consumer spending on a variety of goods, from necessities to luxuries, has surged as a result of this demographic shift. Many Saudi citizens now have more disposable income due to the country's robust economic performance, which is mostly attributable to its oil industry. 

Consequently, this has stimulated consumer confidence and expenditure. Modern shopping malls, outlets, and online retail platforms have developed as a result of the government's efforts to diversify the economy through programmes like Vision, which have also encouraged investments in the retail sector.

E-commerce has increased dramatically as technology adoption rises, which is driving the retail market even more. All things considered, a favourable demographic landscape, strong economic growth, and progressive policies shape the Saudi Arabia retail market.

Saudi Arabian shopping continues to be greatly enhanced by traditional souks, or markets, even in the face of the growth of modern retail.  The Saudi Arabia retail market has benefited from the country's growing tourism, particularly in tourist-friendly areas.

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SAUDI ARABIA RETAIL MARKETRECENT PARTNERSHIP

Panda Retail has extended its partnership with RELEX Solutions, a supplier of integrated supply chain and retail planning solutions, to encompass space management optimization and promotion planning. 

Panda Retail will have a roadmap via RELEX that will take them towards an entirely functional and effective end-to-end retail supply chain. Panda Retail will be able to lower operating expenses and increase the effectiveness of their promotions with more efficient promotion and space planning procedures. 

By integrating their entire supply chain—from demand forecasts to store operations—Panda Retail will improve both their profitability and customer service.  RELEX is selected by Panda Retail due to their proficiency and dependability exhibited throughout the forecast and replenishment solution deployment.

SAUDI ARABIA RETAIL MARKET RECENT DEVELOPMENT

With its first location at King Abdulaziz International Airport in Jeddah, Saudi Arabia, Chalhoub Group introduced "The Visitor," a new travel retail concept brand. Designed to meet the demands of the growing younger generation of travellers, this ground-breaking idea aims to enhance the travel experience. 

The launch of the "The Visitor" concept demonstrates Chalhoub Group's dedication to retail excellence and its goal of completely redefining the travel retail scene in Saudi Arabia as well as the rest of the region and the world.

Featuring more than 200 high-end brands in Fashion, Beauty, Fragrances, Jewellery, Eyewear, and Electronics, the concept boasts a vast 4000m2 of retail space. Prestigious brands like Carolina Herrera, Dior, Gucci, Jo Malone, La Mer, and Swarovski are among the exclusive offerings, providing travellers with an unmatched assortment of products in various categories.

They aim to provide their customers with a distinctive experience that is in line with their values and aspirations by hand-selecting over 200 prestigious brands from all different categories.

SAUDI ARABIA RETAIL MARKET RECENT TRENDS

• Value-seeking behaviour after VAT: Even at the comparatively low rate of 5 percent, the introduction of VAT has resulted in a change in consumer behaviour in a market that has been tax-free. Cost consciousness is higher than ever among Saudi consumers on average.
• Rise of e-commerce: Although physical stores won't go away, GCC consumers' purchasing habits have changed due to the widespread use of smartphones and digital services. 
• Physical stores still have a place: People no longer need to visit stores in person because of online shopping. If physical stores serve purposes other than just retail, they will continue to be a valuable resource. Retailers own a portfolio of strategically placed spaces that are ready for new uses.
• Omnichannel strategies: In Saudi Arabia Retail markets, where the consumer base is among the wealthiest, omnichannel strategies are essential for businesses to create a seamless online, social media, mobile, and brick-and-mortar experience.

SAUDI ARABIA RETAIL MARKET COMPETITIVE LANDSCAPE

Panda Retail Company is the biggest grocery retailer in the country, with more than 182 stores in 39 cities. With more than 95 million customers visiting their stores every year, we operate 4 main distribution centres in the country with a fleet of more than 500 temperature-controlled trucks to deliver over 30,000 SKUs of food and non-food products to their stores.

Jarir is a retailer and wholesaler of its products in Saudi Arabia and in other GCC Countries.  Jarir became a Joint Stock Company (CR No. 1010032264) and is listed in the Saudi Capital Market (Tadawul) in the year 2003. Currently, Jarir has a paid-up capital of SR 1.20 Billion.

Saudi Marketing Company is one of the leading companies in the fields of retail, trading, and importing in Saudi Arabia.  SAMCO now leads a chain of 90 branches spread across the Kingdom while having 17 mini markets serving prestigious and exclusive residential complexes, with plans to further expand its stores.

THIS REPORT WILL ANSWER FOLLOWING QUESTIONS

1. Cost breakup of a Saudi Arabia retail market and key vendor selection criteria
2. Where is the retail manufactured? What is the average margin per unit?
3. Market share of Saudi Arabia retail manufacturers and their upcoming products
4. Cost advantage for OEMs who manufacture retail in-hoSaudi Arabia
5. key predictions for next 5 years in Saudi Arabia retail market
6. Average B-2-B retail market price in all segments
7. Latest trends in Saudi Arabia retail market, by every market segment
8. The market size (both volume and value) of the Saudi Arabia retail market in 2024-2030 and every year in between?
9. Production breakup of retail market, by suppliers and their OEM relationship