In 2021 retailing sales in general have started to recover from the COVID-19 pandemic. As restrictions come to an end and consumers return to work, the economy is showing signs of recovery that will benefit private consumption and consumer confidence.
As the economy reopens post pandemic, Jordan is experiencing a slight growth in the retailing sector. Specialists say that growth in the non-grocery industry has escalated.
Many of the consumers in Jordan’s cities, especially in West Amman (a relatively wealthy area), have started to shop weekly and are increasingly switching to modern retailing, especially hypermarkets which are mainly situated in malls. Hypermarkets are seen as a good place to access cheaper prices and a broad range of products.
Due to the high number of migrants entering the country, the population of Jordan has risen from 4.8 million in 2000 to a little more than 10.
Jordan has invested, and continues to invest, significant sums in its infrastructure. As a result, it has 8,000 sq km of road network and a railway, which is used mainly for transporting raw material to the southern Port of Aqaba.
Informal retailing is mainly seen in the alcohol and tobacco industries and is often carried out through small independent grocers and alcohol specialists. Smuggled cigarettes from Lebanon were very common in Jordan in the past and were available everywhere, not necessarily because of the price but because many Jordanians preferred the taste of these smuggled cigarettes.
Post pandemic, Jordan’s retailing industry is set to stage a recovery over the forecast period. Growth should be supported by the ongoing shift towards modern grocery retailers and the rise of e-commerce, although consumers showing a more cautious approach to non-essential spending could impact some channels within non-grocery specialists.
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Sales of new and used goods to the general public for personal or household consumption. Excludes specialist retailers of motor vehicles, motorcycles, vehicle parts, fuel. Also excludes foodservice, rental and hire and wholesale industries (Cash and Carry). Sales value excluding or including VAT/Sales Tax. Retailing is the aggregation of Store-based retailing and Non-store retailing. Retailing 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, ie retailers operating illegally, and (b) any proportion of sales generated by a registered and licensed retailer which 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 retailing. In relation to click and collect purchases (i.e. where purchases are made over the internet but picked up at store) where the sales data is attributed depends on where the payment is made: If payment is made in store, then the sale is included in store-based sales. If payment is made over the internet, then the sale is included in internet retailing.See All of Our Definitions
This report originates from Passport, our Retailing research and analysis database.
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