Apparel and Footwear Specialist Retailers in Saudi Arabia

PROSPECTS

Channel hit by government’s Saudization policy as dependents sent home

The apparel and footwear specialists channel saw continued negative growth in 2019. Massive closures in the channel occurred towards the end of the review period, as players consolidated brand portfolios and closed non-performing outlets.

Apparel and footwear benefits from societal modernisation and liberalisation of restrictions on women

Historically, apparel and footwear outlets were required to practice conservative marketing, as marketing women’s clothing items such as lingerie and immodest garments was not encouraged. The appearance of women in advertising was also uncommon.

Players react to changing demand and fashion trends, digital technology increasingly utilised

Retailers are reviewing their portfolios, whether products or stores, to reflect changing consumer patterns in the country. The shift is partly aimed at bringing more affordable brands to shopping malls.

COMPETITIVE LANDSCAPE

Fawaz Abdulaziz Al Hokair maintains lead but sees value share eroded in 2019

Fawaz Abdulaziz Al Hokair & Co continued to lead the channel in 2019. It is one of the leading business groups, which holds franchise rights for most apparel and footwear global brands in the country featuring Aldo, Zara, Nine West, Massimo Dutti, among many others.

E-commerce gains traction, but bricks and mortar outlets unlikely to be supplanted any time soon

Faced with the rising challenge of online shopping, bricks and mortar retailers have sought to diversify their offerings to secure a customer base. They provide a growing range of in-store experience and entertainment facilities.

Promotions an increasingly important tool

To boost sales, most leading brands implemented regular promotions and discounts throughout the year towards the end of the review period. Efforts were made to entice customers through attractive offers.

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