Hypermarkets in Saudi Arabia

PROSPECTS

Hypermarkets benefit from increasingly modernised nature of Saudi retailing, steal customers from discounters

The hypermarkets channel saw a return to positive growth in 2019, from the negative performance demonstrated the previous year. Over the past few years, the landscape of the retail environments in Riyadh and Jeddah have transformed from conventional marketplaces formed of unorganised independent stores and shops, to organised large-scale shopping malls and hypermarkets offering the largest global brands.

Hypermarkets increasingly implement technology to capture consumers

Hypermarkets are increasingly incorporating modern digital marketing technologies as they seek to appeal to consumers’ interests by creating engaging, immersive experiences. An ever-growing number of brands are harnessing the power of digital screens and immersive 3D hologram technology to reach out and form stronger relationships with customers.

Increased number of women in workforce leads to expanded product range in hypermarkets

With Saudization policies in the retail sector providing opportunities for women to enter the formal workplace, hypermarkets have witnessed a boost in female sales representatives and managers. This improves category management and the variety of products in certain ranges, particularly those associated with beauty and female hygiene, as these roles were previously dominated by men.

COMPETITIVE LANDSCAPE

Hyper Panda recovers to strengthen lead through effective promotional strategies

Panda Retail Co with Hyper Panda consolidated its position as the leading hypermarket player in the Kingdom in 2019. Sales recovered in 2019 after a slowdown in 2018, which resulted from a decline in customers that was only partially offset by an increase in basket size.

Bin Dawood suffers as Panda Retail makes gains, expands both bricks and mortar and e-commerce activities

Bin Dawood Group remained in second place in 2019, but saw a slight value share decline. The company has two brands in the hypermarkets channel: Danube and Bin Dawood.

Emke Group makes gains, plans to open more new outlets

Emke Group saw a notable value share gain in 2019, and rose in the channel’s rankings with Lulu Hypermarket. A new hypermarket was launched in Riyadh, further expanding the company’s presence in the Kingdom.

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