The retail market in Saudi Arabia to grow at a CAGR of 7.45% during the period 2016-2020.
Retail Market in Saudi Arabia 2016-2020, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.
A trend which is helping boost market growth is the demand for luxury products. The Saudi population is generally very traditional; however, their increasing exposure to international fashion brands is encouraging them to try out new styles and designs and incorporate them into their culture.
Brands such as Burberry, Prada, and Tiffany & Company have expanded their presence in the country by entering the market through boutique stores rather than opting for a shop-in-a-shop concept. Luxury retailers continue to offer products that cater to the middle- and upper-middle classes.
According to the report, the retail market in Saudi Arabia is no exception; and the rising disposable income of the population in the country has a positive impact on the growth of the market - in fact, it is one of the most important drivers of the market in the country. The expansion of the Saudi economy over the past few years has increased the consumer's spending power in the country. In terms of disposable income,
Saudi Arabia had surpassed the global average for disposable income in 2012, recording a figure of $7,500. Despite the fall in oil prices, the market in Saudi Arabia continued to enjoy a robust growth, due to its solid base of domestic consumers and growing youth population with high disposable income. port, a key growth driver is the rising disposable income and high consumer confidence index.
The market is divided into the following segments based on products:
- Home improvement - Apparel and footwear - Grocery - Consumer electronics - Beauty and personal care (BPC)
- Alhokair Fashion Retail - Al Othaim - Jarir - Savola - Saudi Marketing Company (FARM Superstore) - United Electronics (eXtra)
Other prominent vendors
- Anwal United Trading - AlJammaz - Azizia Panda - BinDawood - Carrefour Saudi Arabia - Etre - Fawaz Al Hokair - Landmark Group - Lulu Hypermarket - Umark