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Retail Market in Saudi Arabia 2016-2020

About the Retail Market in Saudi Arabia

The increase in oil prices between 2003 and 2013 brought prosperity in Saudi Arabia and it became the world's 90-largest economy. The hike in oil prices brought growth across sectors, and the GDP; household income; employment levels; and government investments in health, infrastructure, and education increased. However, the government cannot rely solely on revenue from fuel since the global energy market dynamics is changing and demographics of the country is expected to transition with an increasing number of working-age Saudi Arabians by 2030.

Technavio’s analysts forecast the retail market in Saudi Arabia to grow at a CAGR of 7.45% during the period 2016-2020.

Covered in this report

The report covers the present scenario and the growth prospects of the retail market in Saudi Arabia for 2016-2020. To calculate the market size, the report has taken into account the revenue generated from retail sales of the products offered.

The market is divided into the following segments based on products:

  • Home improvement
  • Apparel and footwear
  • Grocery
  • Consumer electronics
  • Beauty and personal care (BPC)
Technavio's report, 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.

Key vendors
  • 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
Market driver
  • Rising disposable income and higher consumer confidence index
  • For a full, detailed list, view our report
Market challenge
  • Unstable economic and political scenario
  • For a full, detailed list, view our report
Market trend
  • Demand for luxury products
  • For a full, detailed list, view our report
Key questions answered in this report
  • What will the market size be in 2020 and what will the growth rate be?
  • What are the key market trends?
  • What is driving this market?
  • What are the challenges to market growth?
  • Who are the key vendors in this market space?
  • What are the market opportunities and threats faced by the key vendors?
  • What are the strengths and weaknesses of the key vendors?


Press Release

Technavio Announces the Publication of its Research Report – Retail Market in Saudi Arabia 2016-2020

Technavio recognizes the following companies as the key players in the retail market in Saudi Arabia: Alhokair Fashion Retail, Al Othaim, Jarir, Savola, Saudi Marketing Company (FARM Superstore), and United Electronics (eXtra).

Other Prominent Vendors in the market are: Anwal United Trading, AlJammaz, Azizia Panda, BinDawood, Carrefour Saudi Arabia, Etre, Fawaz Al Hokair, Landmark Group, Lulu Hypermarket, And Umark.

Commenting on the report, an analyst from Technavio’s team said: “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.

Further, the report states that one challenge that could hamper market growth is the unstable economic and political scenario.



Companies Mentioned

Alhokair Fashion Retail, Al Othaim, Jarir, Savola, Saudi Marketing Company (FARM Superstore), United Electronics (eXtra)Anwal United Trading, AlJammaz, Azizia Panda, , BinDawood, Carrefour Saudi Arabia, Etre, Fawaz Al Hokair, Landmark Group, Lulu Hypermarket, Umark.

  • Executive summary
    • Highlights
    • Growth sectors in Saudi Arabia and consumer profile
  • Scope of the report
    • Market overview
    • Top-vendor offerings
      • Table Product offerings
  • Market research methodology
    • Research methodology
    • Economic indicators
  • Introduction
    • Key market highlights
    • Evolution of retail market in Saudi Arabia
      • Table Evolution of retail market in Saudi Arabia
      • Table Predicted trend of retail market in Saudi Arabia
  • Saudi Arabia profile
    • Oil production
      • Table Countries by oil production (thousands of barrels per day)
    • Export of crude oil and petroleum products
      • Table World exports of crude oil and petroleum products by country 2010-2014 (1,000 barrels per day)
      • Table Average crude oil prices of OPEC basket 2003-2015 ($ per barrel)
    • Inflation
      • Table Inflation at consumer prices (annual %)
    • Total imports and exports of Saudi Arabia
      • Table Total imports and exports in Saudi Arabia 2010-2014 ($ billions)
      • Table Export product share 2013 (%)
      • Table Import product group share 2013 (%)
    • Top five exporting countries to Saudi Arabia
      • Table Top five exporting countries to Saudi Arabia (%)
    • Top five importing countries to Saudi Arabia
      • Table Top five importing countries to Saudi Arabia (%)
      • Table Retail market in Saudi Arabia: Overview
      • Table Saudi Arabia: Overview
    • Population of Saudi Arabia
      • Table Population of Saudi Arabia 2010-2014 (millions)
      • Table Distribution of population by age
    • GDP growth (annual %)
      • Table GDP growth 2010-2014 (annual %)
      • Table Annualized GDP growth rate for Saudi Arabia in comparison to other emerging, frontier, and developed markets 2011-2014 (%)
    • Household final consumption in Saudi Arabia
      • Table Household final consumption in Saudi Arabia 2012-2014
    • Employment to population ratio in Saudi Arabia
      • Table Employment to population in Saudi Arabia 2010-2014 (%)
    • Urban population in Saudi Arabia
      • Table Urban population in Saudi Arabia 2010-2014
    • Ease of doing business
      • Table Ease of doing business
  • Market landscape
    • Market overview
      • Table Retail market in Saudi Arabia: Overview
    • Market size and forecast
      • Table Retail market in Saudi Arabia ($ billions)
  • Market segmentation by product
    • Market overview
      • Table Retail market in Saudi Arabia 2015 (% revenue)
      • Table Retail market in Saudi Arabia 2020 (% revenue)
      • Table Retail market in Saudi Arabia 2015 and 2020 ($ billions)
    • Home improvement market in Saudi Arabia
      • Table Home improvement market in Saudi Arabia 2015-2020 ($ billions)
      • Table Riyadh residential supply 2012-2017 (thousands of units)
      • Table Jeddah residential supply 2012-2017 (thousands of units)
      • Table Home improvement market in Saudi Arabia by category (% revenue)
      • Table Home improvement market in Saudi Arabia by category ($ millions)
    • Apparel and footwear market in Saudi Arabia
      • Table Apparel and footwear market in Saudi Arabia 2015-2020 ($ billions)
      • Table Apparel and footwear market in Saudi Arabia by segments (% revenue)
      • Table Apparel and footwear market in Saudi Arabia by segments 2015 ($ billions)
    • Grocery market in Saudi Arabia
      • Table Grocery market in Saudi Arabia 2015-2020 ($ billions)
    • Consumer electronics market in Saudi Arabia
      • Table Consumer electronics market in Saudi Arabia 2015-2020 ($ billions)
      • Table Consumer electronics market in Saudi Arabia by product 2015 (% revenue)
      • Table Consumer electronics market in Saudi Arabia by product 2015 ($ billions)
      • Table Mobile phone users in Saudi Arabia 2013-2019 (millions)
      • Table Mobile phone user penetration 2013-2019 (% of population)
    • BPC market in Saudi Arabia
      • Table BPC market in Saudi Arabia 2015-2020 ($ billions)
      • Table BPC market in Saudi Arabia by product 2015 (% revenue)
      • Table BPC market in Saudi Arabia by product 2015 ($ millions)
      • Table BPC market: Mass versus premium segment in Saudi Arabia 2015 (% revenue)
  • Retail format sales
    • Distribution channel by store format sales
      • Table Distribution channel in retail market in Saudi Arabia
      • Table Distribution channel by store format sales of home improvement market in Saudi Arabia 2015 (% revenue)
      • Table Distribution channel by store format sales of apparel and footwear market in Saudi Arabia 2015 (% revenue)
      • Table Distribution channel by store format sales of grocery market in Saudi Arabia 2015 (% revenue)
      • Table Distribution channel by store format sales of consumer electronics market in Saudi Arabia 2015 (% revenue)
      • Table Distribution channel by store format sales of BPC market in Saudi Arabia 2015 (% revenue)
  • Key cities
    • Table Distribution of SACO by cities
    • Table City-wise GLA distribution in Saudi Arabia 2015
  • Market drivers
    • Rising disposable income and higher consumer confidence index
    • Growth in retail space and increase in footfalls
    • Impact of tourism
    • Changing government policies
    • Influx of global retailers
    • Increase in investments
  • Impact of drivers
    • Table Impact of drivers
  • Market challenges
    • Unstable economic and political scenario
    • Trade risks
    • Highly fragmented market
    • Dependency on imports
  • Impact of drivers and challenges
    • Table Impact of drivers and challenges
  • Market trends
    • Growth of online retail
      • Table Internet penetration in Saudi Arabia
      • Table Online retail market in Saudi Arabia category sales 2015 (%)
      • Table Online retail market in Saudi Arabia category sales 2020 (%)
    • Demand for luxury products
    • Growing influence of women
    • Preference for big box format
    • Leveraging social media platforms for marketing
  • Vendor landscape
    • Competitive scenario
    • Key players in retail market in Saudi Arabia
    • Competitive assessment of top five vendors
    • Alhokair Fashion Retail (Fawaz Al Hokair Group)
      • Table Alhokair Fashion Retail: Geographical segmentation by revenue 2015
    • Al Othaim
      • Table Al Othaim: Geographical segmentation by revenue 2015
    • Jarir
      • Table Jarir: Business segmentation by revenue 2015
      • Table Jarir: Business segmentation by revenue 2014 and 2015 ($ billions)
      • Table Jarir: Geographical segmentation by revenue 2015
    • Savola
      • Table Savola: Business segmentation by revenue 2015
      • Table Savola: Business segmentation by revenue 2014 and 2015 ($ billions)
      • Table Savola: Geographical segmentation by revenue 2015
      • Table Savola: Geographical segmentation by number of stores 2015
    • Saudi Marketing Company (FARM Superstores)
      • Table Saudi Marketing Company: Geographical segmentation by revenue 2015
    • United Electronics (eXtra)
      • Table United Electronics: Geographical segmentation by revenue 2015
    • Other prominent vendors
  • Appendix
    • List of abbreviations
  • Explore Technavio

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