Having plunged by a third during 2020, the retail constant value sales (2021 prices) of department stores recovered only party in 2021, as COVID-19 restrictions were significantly eased. Value-oriented department stores, such as Centrepoint and RedTag, performed better than their premium counterparts during 2020, as the economic shock of the pandemic made many local consumers more price sensitive.
Al Bandar Trading Co, which operates department stores under the Centrepoint banner, has significantly strengthened its leadership position in department stores since the onset of the pandemic, accounting for almost half of their retail value sales in 2021. The brand has a strong presence across the Kingdom, as its stores are not limited to shopping centres or large cities.
With competition, particularly from internet retailers like Amazon and Noon, intensifying, the leading department store chains are increasingly focused on providing consumers with an enhanced shopping experience, both online and in-store. There is a noticeable focus on developing services like buy now pay later, loyalty programmes and providing such services as stylists, in addition to faster deliveries and more flexible returns and refunds.
The retail constant value sales (2021 prices) of department stores will expand over the course of the forecast period, but they will remain below their pre-pandemic level even at the end of it. The growing popularity of e-commerce will be a major factor in this, with local consumers set to increasingly purchase everything from apparel and footwear to consumer electronics online during the forecast period.
With an elevated rate of inflation set to persist at least during the early part of the forecast period, value-oriented department stores like Centrepoint and RedTag are likely to remain the top performers among department stores. Luxury department stores will continue to invest in upgrading the in-store experience by modernising and enhancing interiors, utilising interactive screes and putting more emphasis on employee training.
Department stores will increasingly utilise such technologies as ‘live commerce’ (live streaming via social media) and augmented reality (AR), as they seek to keep younger consumers engaged. Live commerce combines the option of instantly purchasing of a featured product with audience participation via a chat function or reaction buttons.
Files are delivered directly into your account soon after payment is received and any tax is certification is verified (where applicable).
This report comes in PDF with additional info in Excel included.
Understand the latest market trends and future growth opportunities for the Department Stores industry in Saudi Arabia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Department Stores industry in Saudi Arabia, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
Department stores are chained or independent retail outlets that usually exceed 2,500 sq metres of selling space, are typically in high-street or shopping mall locations, and have a primary focus on selling a range of non-food/drink/tobacco merchandise across several categories in different departments. Department stores usually have a mid-to-upper price positioning. Example brands include Macy’s, Marks & Spencer, and Takashimaya.See All of Our Definitions
This report originates from Passport, our Department Stores research and analysis database.
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extraction Free!