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The Saudi 640 Bn Retail market

Insights on market trends and growth

Author

Editorial team
May 20, 2024

Hala Shakers,

The Saudi 640 Bn retail market 🛒

Highlights 

  • Double digits: 13% growth YoY in 2023 📈

  • In-store still matters: Despite the rise of e-commerce, traditional brick and mortal retail continues to thrive, showcasing the importance of a physical presence for certain types of consumer goods.

  • Travel & Eating out: Consumers are still splurging on travel and dine-in spending, with both making the highest annual growth YoY.

Lots have been written about the size and scale of the retail market in KSA! The hard reality is that most of the numbers available online through consulting reports, data aggregators platforms are wrong!

Data compiled from SAMA, Saudi Payments and Internal data

Saudi total retail spending totaled 640 Bn Riyals in 2023; Online E-commerce accounted for more than 136 Bn Riyals.

Online retail grew by a remarkable 27%, while in-store sales still grew by 10%

Adult consumers in Saudi spent both online & offline more than the year before

Offline in-store data compiled from SAMA, Saudi Payments bulletin

41% of the whole retail sector is in the F&B and groceries industry. Following covid, more consumers have been splurging more on dine-in, and pick-up options. For the last 2 years, this section of Saudi retail is showing the most robust growth (This deserves another post), following by travel (transportation) and hotels.

Takeaway✨: Saudi total retail spending totaled 640 Bn Riyals in 2023; Online E-commerce accounted for more than 136 Bn Riyals.

Our projections* indicate the whole retail will exceed 1 trillion by 2028.

*Our forecast model does not account for planned influx of foreign visitors

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