Supermarkets in Saudi Arabia

PROSPECTS

Supermarkets’ smaller size enables greater number of more convenient locations

The supermarkets channel returned to positive growth territory in 2019, albeit marginal. The channel continues to grow in terms of outlets, as supermarkets remain popular among consumers.

Strict rules to limit supermarkets’ external appearance

Supermarkets have been given a 24-month grace period to comply with new municipal conditions with the aim to organise the channel and raise standards by improving service. This is by specifying the conditions for the unified design, operation and licensing of grocery stores.

Competition set to intensify, players expected to develop unique strategies

Overall, the supermarkets channel is expected to see continued growth over the forecast period. There is likely to be increased competition between players, as many attempt to create a unique selling proposition for their customers.

COMPETITIVE LANDSCAPE

Al Othaim makes gains thanks to product range, outlet growth and convenience

Al Othaim from Abdullah Al-Othaim Markets Co maintained its lead of the supermarkets channel in 2019, and saw a slight value share gain. At the end of the review period Al Othaim maintained expansion strategies to increase reach across the country, which contributed to growth.

Panda works on key strategic developments in effort to address share loss

Panda Supermarket continued to face a highly challenging environment in 2019, with a loss of value share in the channel. With new leadership and executive teams, Panda is working on key improvements.

Farm Superstores and SPAR open new outlets

Farm Superstores saw a marginal value share gain in 2019. The company opened a new branch in Jubail Industrial City, raising the total number of stores in Saudi Arabia to 85.

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