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Consumers in Saudi cut down on durable household goods

Home remodeling and appliances upgrade are so 2021

Author

Editorial team
May 21, 2024

Hala Shakers,

Consumers in Saudi cut down on durable household goods

Highlights 

  • Saudi consumers spending on durable household items (think appliances, electronics, furniture) 🛋️ are down in 2023 🔻⬇️

  • Annual growth % for retail in-store sales for the Furniture sector is -6%

  • Annual growth % for retail in-store sales in Electronics & appliances is -19%

Data compiled from SAMA statistical reports

Consumers loaded up on durable goods during the Covid years of 2020 and 2021, remember staying up home and looking up new dining sets or smart-fridges 🛒! Families in Saudi splurged on home and appliances upgrades, making these two sectors (furnitures and Electronics) some of the fastest growing categories in retail during Covid.

Still, consumers still spared a total of 28 Bn Riyals in-stores on these items in 2023. Some of the decline in-store went to online deals, where furniture or appliances shopping on marketplaces are now more commonplace.

Data compiled from SAMA statistics reports

Our internal data is that online e-commerce shopping 💳 accounted for an additional 5.5 Bn .

Takeaway 🏘️

Spending on durables is declining. However, the average family spent 3500 Riyals on household goods in 2023. The durables market is cyclical, and we expect return to growth in the next 2 years.

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