Retail in the Middle East and North Africa: A Look into a Polarised Region

One region with a fragmented retail landscape

The lack of regional integration and weight of tradition requires a case by case strategy for retailers. Despite the cultural and linguistic similarities in the region there is a two tier retail landscape between Gulf countries and the rest.

Young population both a risk and an asset

The Arab Spring revolutions that shook the region indicated the distrust felt mainly by the young population of their ageing leaders. High unemployment remains a threat and will require significant reforms and strong economic growth.

Traditional grocery retail dominates in most countries

Despite rising disposable incomes, most consumers continue to shop in small neighbourhood stores and small scale traders. This is due to fewer women being involved in the workforce than in developed countries, and also the limited number of households owning a car.

Great success of social media but little penetration of internet retail

The use of social media, such as Twitter and Facebook, by a young and educated urban population played a part in the organising of protests during the Arab Spring and is now an established part of social culture. This is an area that retailers and payment operators should target in order to build a online shopping culture as well.

Modern retailing remains driven by international chains

In the gulf countries as well as in North Africa, modern retail is mainly about Western European and US brands. This is particularly true in apparel and electronics, and there are only a handful of local chains in this area.

Franchising the easiest route to market

Although most big retail brands operating in MENA are foreign, their route to market is mainly through franchising and joint ventures, due to restrictions on FDI and the need for local expertise.

What this report includes

• Top-level strategic analysis of how major consumer trends will influence global markets
• Consumer insight
• Impact across all relevant consumer markets
• Unique graphics and case studies
• Key market snapshots
• Accompanying presentation to synthesise main findings
   

Why buy this report

• Identify factors driving change now and in the future
• Understand motivation
• Forward-looking outlook
• Briefings and presentation should provoke lively discussion at senior level
• Take a step back from micro trends
• Get up to date estimates and comment

Delivery format

PDF/Word
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