Convenience store constant value sales (2021 prices) declined for the second year in a row during 2021 – albeit at a more modest rate than in the previous year. After the lifting of most COVID-19 restrictions, the daily routines of local consumers began to normalise.
Meed Trading Co has consolidated its leading position among convenience stores in a fragmented competitive landscape over the course of the review period. The company leverages its widespread presence in the Kingdom and adds another level of service by partnering with Amazon.
A significant number of convenience stores and baqalas have closed down in Saudi Arabia as a result of the country’s Saudization programme, and the number of convenience stores in the Kingdom continued to decline in 2021. To support sales, brands are entering into partnerships with convenience stores to endorse their products in outlets through various campaigns (Nestlé in Meed stores, for example).
In constant value terms (2021 prices), convenience store sales will stabilise during 2022, with growth accelerating steadily over the course of the forecast period. Apart from an anticipated post-pandemic economic rebound, growth will be supported by population expansion and urbanisation.
Local consumers are gradually growing more comfortable doing their grocery shopping online and the Kingdom’s internet retail infrastructure is maturing, and this will put downward pressure on convenience store sales during the forecast period. Another negative factor is the proliferation of vending machines in the Kingdom, which are increasingly being used to sell everything from snacks and drinks to OTC consumer health.
It is expected that Meed will continue to lead convenience stores sales during the forecast period, as it owned by one of the largest holding companies in the Middle East, Al Mawarid Group. As a result, it is able to expand into smaller urban centres.
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Chained grocery retail outlets selling a wide range of groceries and fitting several of the following characteristics: Extended opening hours Selling area of less than 400 sq metres Located in residential neighbourhoods Handling two or more of the following product categories: audio-visual goods (for sale or rent), foodservice (prepared take-away, made-to-order, and hot foods), newspapers or magazines, cut flowers or pot plants, greetings cards, automotive accessories. Sales data excludes foodservice sales. Example brands include 7-Eleven, Spar. Note: The number of branches required to be termed chained varies from country to country but is usually ten or more. If a multinational is operating in the country, then this is included, even if there are fewer than ten outlets under the brand.See All of Our Definitions
This report originates from Passport, our Convenience Stores research and analysis database.
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