Sales at grocery retailers slipped into decline in Middle East and Africa in 2022, having received a boost when the pandemic hit the region in 2020. Consumers in many countries were becoming more budget-conscious at the end of the historic period, given the inflationary environment caused by a number of factors, including the war in Ukraine. However, positive growth is currently expected throughout the forecast period, driven by both small local grocers and modern grocery retailers.
This report comes in PPT.
One of the main obstacles to the expansion of modern grocery retailers in Algeria is limited consumer access, as it is primarily a rural country. While urbanisation is taking place and supermarkets continue to expand, traditional grocery retailers remain popular due to the geography and local habits. Such stores are widespread across Algeria, offering cheap and local products in both urban and rural areas, with their convenience and low prices helping them to maintain a loyal customer base, especially as Algerians still prefer to shop for groceries daily.
Food and drink e-commerce is growing in popularity in Saudi Arabia, with the pandemic having accelerated this trend. While e-commerce poses a threat to store-based retailing, it could also represent a growth opportunity. The fact that many stores are located close to where consumers live leaves them well placed to develop q-commerce, where orders can be delivered within minutes of being made, especially if they work with third-party delivery apps. With Saudi Arabia urbanising and more women joining the workforce, speeding up consumer lifestyles, demand for q-commerce is likely to increase over the forecast period.
South Africa’s Department for Small Business Development has announced plans for a new licence framework to support the formalisation of unauthorised traders. It will complement the existing Spaza Shop Support Programme, which is helping to link informal traders with wholesalers, access products from small/medium-sized businesses, and facilitate registration.
Discounters, which have a large gap between average basket prices compared to other retailers, continue to lead grocery retailers in Israel, with this channel’s private label lines remaining very popular. Discounters are particularly appealing to members of the ultra-Orthodox community, who, generally, do not purchase products via e-commerce and often cannot afford the higher-priced products on offer in supermarkets and convenience stores.
One of the main obstacles to the expansion of modern grocery retailers in Algeria is limited consumer access, as it is primarily a rural country. While urbanisation is taking place and supermarkets continue to expand, traditional grocery retailers remain popular due to the geography and local habits. Such stores are widespread across Algeria, offering cheap and local products in both urban and rural areas, with their convenience and low prices helping them to maintain a loyal customer base, especially as Algerians still prefer to shop for groceries daily.
Food and drink e-commerce is growing in popularity in Saudi Arabia, with the pandemic having accelerated this trend. While e-commerce poses a threat to store-based retailing, it could also represent a growth opportunity. The fact that many stores are located close to where consumers live leaves them well placed to develop q-commerce, where orders can be delivered within minutes of being made, especially if they work with third-party delivery apps. With Saudi Arabia urbanising and more women joining the workforce, speeding up consumer lifestyles, demand for q-commerce is likely to increase over the forecast period.
South Africa’s Department for Small Business Development has announced plans for a new licence framework to support the formalisation of unauthorised traders. It will complement the existing Spaza Shop Support Programme, which is helping to link informal traders with wholesalers, access products from small/medium-sized businesses, and facilitate registration.
Discounters, which have a large gap between average basket prices compared to other retailers, continue to lead grocery retailers in Israel, with this channel’s private label lines remaining very popular. Discounters are particularly appealing to members of the ultra-Orthodox community, who, generally, do not purchase products via e-commerce and often cannot afford the higher-priced products on offer in supermarkets and convenience stores.
Retail is the sale of new and used goods to consumers from a business for personal or household consumption from retail outlets, kiosks, market stalls, vending, direct selling and e-commerce. Retail is the aggregation of Retail Offline and Retail E-Commerce. Excludes specialist retailers of motor vehicles, motorcycles, vehicle parts. Also excludes fuel sales, foodservice sales, rental transactions, and wholesale sales (e.g. Cash and Carry). Sales value excluding or including VAT/Sales Tax. Retail also excludes the informal retail sector. Informal retailing is retail trade which is not declared to the tax authorities. Informal retailing encompasses (a) sales generated by unregistered and unlicensed retailers, i.e. retailers operating illegally, and (b) any proportion of sales generated by a registered and licensed retailer that is not declared to the tax authorities. Unregistered and unlicensed retailers operate predominantly (although not exclusively) as street hawkers or operate open market stalls, as these channels are harder for the authorities to monitor than permanent outlets. Activities in the illegal market, which is usually understood to refer to trade in illegal, counterfeit or stolen merchandise, are included within our definition of informal retailing. Activities in the “grey market”, which is usually understood to refer to trade in legal merchandise that is sold through unauthorized channels – for example cigarettes bought legally in another country, legally imported, but sold at lower prices than in authorized channels – will be included as informal retailing if no tax is paid on sale by the retailer. However if the retailer pays tax – for example on cigarettes bought legally in another country but sold at a lower price than standard – the sale is included within formal retail.
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