Among modern grocery retailers, supermarkets were the big winners from the pandemic, with their retail constant value sales (2021 prices) rising at a double digit rate during 2020. While they continued to expand during 2021, it was at a much lower rate that was in line with the review period prior to the pandemic.
Food and drink e-commerce is growing in popularity in Saudi Arabia, with the pandemic serving to accelerate this trend. This is putting increased pressure on supermarkets – particularly as they have generally been slower to offer this service to their customers than hypermarkets.
Even in the midst of the pandemic, the number of supermarkets in the Kingdom has continued to grow. The channel also represents an attractive format for players due to the ease of expansion.
The retail constant value sales (2021 prices) of supermarkets will expand at no more than a modest rate throughout the forecast period. There is likely to be increased competition between players, as many attempt to create a unique selling proposition for their customers.
While e-commerce poses a threat to supermarkets, it also represents a growth opportunity. The fact that supermarkets are generally located much closer to where consumers live leaves them well placed to develop so-called quick-commerce (q-commerce), where orders are delivered within minutes of being made, if they work with third party delivery apps.
Supermarkets have been given a 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.
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Understand the latest market trends and future growth opportunities for the Supermarkets industry in Saudi Arabia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Supermarkets industry in Saudi Arabia, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
Retail outlets selling groceries with a selling space of between 400 and 2,500 square metres. Excludes discounters, convenience stores and independent grocery stores. Example brands include Champion, Tesco, Casino. Exception: In some markets, primarily the US, Australia and Hong Kong, there are grocery retailer brands that operate outlets with a selling space of over 2,500 square metres, but offer only a very limited range of non-grocery merchandise or none at all. These brands are included in Supermarkets. Examples include: Coles, Woolworths, Park ‘n Shop. For the Supermarket channel Euromonitor also provides a breakdown of value sales between Grocery and Non-Grocery products.See All of Our Definitions
This report originates from Passport, our Supermarkets research and analysis database.
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