Economy growth fuels higher disposable incomes
- Aside from Saudi Arabia’s second-largest oil reserves and high oil exports that generate billions of dollars on a daily basis, the kingdom has been investing heavily in its industrial and non-oil areas, which largely helps the local economy. Saudi Arabia witnessed GDP growth even during the global financial crisis and its economy is growing annually. Such economic growth steadily reduced the unemployment rate in the country, which in turn raised the average income. Better living conditions and increasing disposable income levels are having a positive effect on the retailing industry. Consumers in Saudi Arabia are spending more on their wants than their needs.
Population growth is key to retailing growth
The population of Saudi Arabia reached over 29 million in 2013, as recorded by Saudi Arabia’s Central Department of Statistics and Information. The growing population is the main driver for the different retailing areas of the kingdom. Youngsters aged between 0 and 24 account for around a third of the population. Retailers are spending large proportions of their marketing campaigns on the different marketing channels, both physical and online, to target this group. Retailers believe that this group is easier to convince into a device change, upgrade, and trial. Despite the fact that young Saudis often have limited to no income and their spending habits are not organised, they spend more on their wants than on their needs.
Strong non-grocery growth due to higher consumer incomes
The growing economy in the country positively developed the country’s overall living standards and increased the purchasing powers of many consumers to new levels. Saudis have been more interested in acquiring luxury goods, the latest technology and other non-essential products that they previously viewed as extras. Such growth in non-grocery retailing has increased sales to new levels, higher than those of grocery.
Fawaz Abdulaziz Al Hokair and M H Alshaya continue to be the largest retailers in the kingdom
There is fierce retailing competition between Fawaz Abdulaziz Al Hokair and M H Alshaya. The two companies are racing to acquire more brand representation in the country and more premium outlet space. They lead the retailing industry within many categories. Fawaz Abdulaziz Al Hokair has a unique advantage in that it owns major shopping centre developments in the country. Such ownership gives the company an advantage in terms of outlet locations. M H Alshaya’s strength lies in its premium brands in more diverse categories, such as Starbucks.
Strong retailing growth expected during the forecast period
While the review period saw a strong value performance for retailing, the forecast period is expected to see sales growth strengthen even further. Stronger growth during the forecast period will be linked to a wide range of factors, including ongoing economic and population growth, urbanisation and strong shopping centre development and outlet volume expansion by chained players. Ongoing increases in incoming tourist numbers will also fuel growth, while value sales growth will also be supported by Saudi Arabia's young and increasingly-aspirational consumer base.
Samples (FAQs about samples):Sample Retailing Market Research Report
Sample Retailing Data
Delivery: Files are delivered directly into your account within a few minutes of purchase.
Discover the latest market trends and uncover sources of future market growth for the Retailing industry in Saudi Arabia with research from Euromonitor's team of in-country analysts.
Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.
If you're in the Retailing industry in Saudi Arabia, our research will save you time and money while empowering you to make informed, profitable decisions.
When you purchase this report, you also get the data and the content from these category reports in Saudi Arabia for free:
The Retailing in Saudi Arabia market research report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic number of stores, selling space and values, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent market research methodology, conducted in-country
Our market research reports answer questions such as:
- How big is the grocery/non-grocery/non-store channel in Saudi Arabia?
- Who are the leading retailers in Saudi Arabia?
- How is retailing performing in Saudi Arabia?
- What is the retailing environment like in Saudi Arabia?
- Which channels are winning or losing in the fight for consumers’ money?
Why buy this report?
- Gain competitive intelligence about market leaders
- Track key industry trends, opportunities and threats
- Inform your marketing, brand, strategy and market development, sales and supply functions
This industry report originates from Passport, our Retailing market research database.