Retail in Saudi Arabia Expands Steadily as Grocery Formats and Value Channels Drive Growth in 2025
Retail in Saudi Arabia is demonstrating resilience and dynamism, with value sales expanding to SAR436.12 billion in 2025, up 5% year-on-year, underpinned by robust non-oil economic activity and increasing urbanisation. The environment is marked by intensifying competition and innovation, as both established and digital-first operators seek to capture rising demand for convenience, value, and omnichannel experiences. This landscape remains attractive due to ongoing government investment, a buoyant consumer confidence index of 3.2, and a high household expenditure share of 48% of GDP, which collectively support sustained momentum in both store-based and online channels. Companies seeking success in Saudi retail must respond to heightened price sensitivity, rapidly shifting digital habits, and consumer expectations for seamless engagement, which requires investment in digital platforms, loyalty, and ecosystem strategies that bridge physical and online touchpoints.
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Overview:
Understand the latest market trends and future growth opportunities for the Retail 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.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
- Convenience Stores
- Discounters
- Hypermarkets
- Supermarkets
- Traditional Grocery Retailers
- Apparel and Footwear Specialist Retailers
- Electronics and Appliance Specialist Retailers
- Health and Beauty Specialist Retailers
- Home and Garden Specialist Retailers
- Department Stores
- Variety Stores
- Warehouse Clubs
- Direct Selling
- Homeshopping
- Vending
If you're in the Retail 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.
The Retail in Saudi Arabia report includes:
- Analysis of key retail trends
- Detailed segmentation of offline and online retail sales
- Historic channel sizes (retail value sales, outlet counts, and selling space)
- Company and brand market shares (retail value sales and outlet counts)
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Retail in Saudi Arabia?
- Which are the leading retailers in Retail in Saudi Arabia?
- How are products distributed in Retail in Saudi Arabia?
- How is the rise of e-commerce and the expansion of modern grocery retail impacting traditional retail?
- How significant are discounters and private label in Saudi Arabia?
- To what extent are sales shifting towards digital channels?
- What is the long-term outlook for bricks-and-mortar?
- How is macroeconomic and political uncertainty affecting the retail industry?
- What types of retailers are seeing the fastest growth in digital sales?
- What is the future of retail?
Retail in Saudi Arabia
Retail in Saudi Arabia Expands Steadily as Grocery Formats and Value Channels Drive Growth in 2025
Key Data Insights
Retail in Saudi Arabia Expands Steadily as Grocery Formats and Value Channels Drive Growth in 2025
Retail E-Commerce Accelerates as Marketplace Apps Capture Weekly Baskets
Lifestyle Destinations Transform Shopping Trips into All-Day Experiences
Growth Is Set to Be Driven by Vision 2030 Investment, Experience-Led Destinations, and Value-Focused Consumers
Retail E-Commerce Is Set to Drive Growth as Omnichannel Strategies Gains Traction
Panda Retail Company and Abdullah Al Othaim Markets Copanda Defend Their Lead as Digital Challengers Build Share
Mergers and Acquisitions Activity and Format Innovation Reshape Saudi Arabia’S Competitive Retail Landscape
Informal Retail
Opening Hours for Physical Retail
Seasonality
Ramadan and Eid-al Fitr
National Day
Back to school
White Friday
Convenience Retailers in Saudi Arabia
Key Data Insights
Coffee Culture and On-The-Go Lifestyles Transform Convenience Shopping Habits
Coffee Culture and On-The-Go Lifestyles Transform Convenience Shopping Habits
Sasco Palm Reinvents Roadside Retail with Modern Forecourt Convenience
Othaim Express Expands Its Omnichannel Reach through Delivery and Digital Partnerships
Forecourt Retailers Is Set to Lead Sales as Modernisation Accelerates
Digital Payments and Tourism Increase Demand for Grab-And-Go Solutions
Market Consolidation Deepens as Leading Convenience Retailers Expand through Format Innovation
Supermarkets in Saudi Arabia
Key Data Insights
Supermarkets Reinforce Value during Price-Sensitive Consumer Behaviour
Supermarkets Reinforce Value during Price-Sensitive Consumer Behaviour
Supermarkets Strengthen Omnichannel Retail and Convenience-Driven Shopping Experiences
Supermarkets Is Set to Maintain Steady Growth Supported by Demographic Expansion and Stable Macroeconomic Conditions
Supermarkets Will Evolve through Value-Led Strategies and Omnichannel Integration to Strengthen Customer Loyalty
Competition Intensifies as Leading Chains Expand Networks, Digital Capabilities and Premium Retail Formats
Hypermarkets in Saudi Arabia
Key Data Insights
Value-Driven Shopping and Promotions Support Steady Growth in Saudi Hypermarkets
Value-Driven Shopping and Promotions Support Steady Growth in Saudi Hypermarkets
Digital Fulfilment and Convenience Reshape the Hypermarket Model
Fresh Food and Experiential Retail Reposition Hypermarkets as Lifestyle Destinations
Destination Grocery and Macro-Driven Growth Will Support the Long-Term Expansion of Hypermarkets
Value Pressure and Digital Integration Are Set to Redefine Competitive Strategy in Hypermarkets
Panda Retail Co Leads Hypermarkets as Rivals Gain Ground
Consolidation, Innovation, and Digitalisation Redefine Competition in Hypermarkets
Discounters in Saudi Arabia
Key Data Insights
The Rapid Expansion of Discounters Is Driven by Value-Seeking Behaviour and Outlet Growth
The Rapid Expansion of Discounters Is Driven by Value-Seeking Behaviour and Outlet Growth
Al Dukan’S Limited Assortment Model Influences Daily Shopping Habits
Viva’S Entry Accelerates Focus on Private Label as a Value Differentiator
Discounters Is Set to Sustain Rapid Growth as Neighbourhood Expansion Drives Penetration
Intensifying Price Competition and Private Label Growth Will Reshape the Competitive Landscape
Neighbourhood Expansion and Changing Shopping Patterns Will Drive Long-Term Channel Evolution
Al Dukan Retailing Co Remains Dominant with Rapid Neighbourhood Store Rollout
Small Local Grocers in Saudi Arabia
Key Data Insights
Small Local Grocers Face Rising Competitive Pressures as Consumers Migrate to Modern Formats
Small Local Grocers Face Rising Competitive Pressures as Consumers Migrate to Modern Formats
Modernisation Enables Local Shops to Stabilise Sales Amid Outlet Decline
Digital Integration Will Help Small Local Grocers Maintain Competitiveness
Structural Consolidation and Polarisation Will Reshape the Future of Small Local Grocers
Neighbourhood Shops Modernise Operations to Sustain Customer Loyalty
General Merchandise Stores in Saudi Arabia
Key Data Insights
General Merchandise Stores Deliver Steady Growth Driven by Seasonal Demand and Value-Focused Retailing
General Merchandise Stores Deliver Steady Growth Driven by Seasonal Demand and Value-Focused Retailing
Centrepoint Integrates Apps and Loyalty Rewards to Boost Omnichannel Engagement
Miniso Refreshes Its Store Layouts to Spark Impulse Purchases and Expand Appeal
General Merchandise Stores Is Set for Steady Growth Driven by Mall Expansion, Seasonal Demand and Value-Focused Strategies
Omnichannel Integration and Experience-Led Retail Will Redefine Consumer Engagement
General Merchandise Stores Consolidates around Leading Players Amid the Exit of Legacy Brands and the Rise of Modern Formats
Apparel and Footwear Specialists in Saudi Arabia
Key Data Insights
Mixed Performance in Apparel and Footwear Specialists as Demand Shifts toward Premium and Digital Channels
Mixed Performance in Apparel and Footwear Specialists as Demand Shifts toward Premium and Digital Channels
Influencer-Led Social Commerce Accelerates Shift in Apparel Purchasing Behaviour
Ongoing Growth Is Expected to Be Supported by Malls, Tourism, and Economic Diversification
Omni-Channel Integration and Digital Touchpoints Will Become Non-Negotiable for Growth
Fawaz Abdulaziz Alhokair & Co Maintains Its Leadership through a Strong International Brand Portfolio
Fawaz Abdulaziz Alhokair & Co Leads Growth through Fast Fashion Focus and Portfolio Optimisation
Appliances and Electronics Specialists in Saudi Arabia
Key Data Insights
Mature Market Dynamics and Omnichannel Shift Drive Value-Led Growth in Appliances and Electronics Specialists
Mature Market Dynamics and Omnichannel Shift Drive Value-Led Growth in Appliances and Electronics Specialists
Service-Led Propositions Intensify Competition between Major Chains and Specialist Retailers
Appliances and Electronics Specialists Is Set for Steady Growth, Driven by Smart Appliances, Service Innovation and Supportive Macro Trends
Mobile-First Journeys and Click-And-Collect Services Are Expected to Redefine Shopper Expectations
Shifting Competitive Dynamics Is Driven by Omnichannel Leaders and Telecom-Linked Growth
Home Products Specialists in Saudi Arabia
Key Data Insights
Consumer Spending Trends Continue to Support Demand for Homewares and Home Furnishings
Consumer Spending Trends Continue to Support Demand for Homewares and Home Furnishings
Omnichannel Retail and Digital Convenience Reshape Home Products Specialists
Retail Expansion and Format Innovation Is Set to Drive Forecast Growth
Pet Shops and Superstores Will Gain Share as Rising Pet Ownership Is Set to Reshape Priorities
Technology and Omnichannel Strategies Are Set to Redefine the Retail Experience
Home Products Specialists See Rising Concentration and Intensifying Value–Premium Polarisation
Health and Beauty Specialists in Saudi Arabia
Key Data Insights
Health and Beauty Specialists Sustains Value Growth through Wellness Demand and Higher-Value Spending
Health and Beauty Specialists Sustains Value Growth through Wellness Demand and Higher-Value Spending
Pharmacies Leads Growth as Wellness, Chronic Care and Dermo-Cosmetics Reshape Health and Beauty Spending
Digital Ecosystems and Omnichannel Convenience Redefine Competition
Pharmacies Is Expected to Expand Services to Capture Broader Health Spending
Beauty Specialists Will Differentiate with Experience-Led Omnichannel Strategies
Health and Beauty Specialists Will Be Reshaped by Wellness Demand, Digital Integration and Experience-Led Retail Models
Consolidation at the Top Is Driven by Network Expansion, Digital Integration and Value-Led Growth Strategies
Vending in Saudi Arabia
Key Data Insights
Vending Gains Momentum through Convenience, Cashless Payments and Rising Demand for On-The-Go Consumption
Vending Gains Momentum through Convenience, Cashless Payments and Rising Demand for On-The-Go Consumption
Vending Is Set for Sustained Growth as Convenience, Digital Payments and High-Footfall Expansion Drive Demand
Market Concentration Eases Slightly as Smaller Vending Operators Expand Their Presence
Direct Selling in Saudi Arabia
Key Data Insights
Health and Beauty Direct Selling Stabilises as Digital Channels Redefine Selling Practices
Health and Beauty Direct Selling Stabilises as Digital Channels Redefine Selling Practices
Avon Accelerates Digital Engagement as Sellers Leverage Social Commerce
Speciality Drinks and Snacks Gain Momentum through Social Groups
Hybrid Sellers Will Integrate Digital Tools to Build Trust and Grow Sales
Health and Beauty Is Expected to Lead Direct Selling Although Growth Remains Limited
Drinks and Tobacco Direct Sellers Are Set to Drive Growth through Digital Engagement
Digitalisation Reshapes Share Dynamics in a Fragmented Direct Selling Market
Retail E-Commerce in Saudi Arabia
Key Data Insights
Double-Digit Growth Is Driven by Marketplaces and Expanding Digital Adoption
Double-Digit Growth Is Driven by Marketplaces and Expanding Digital Adoption
Omnichannel Integration Becomes Vital to Defend Share and Drive Loyalty
Ultra-Low-Price Platforms and Local Specialists Intensify Competition
One-Stop Platforms Are Set to Drive Repeat Spending and Growth in Retail E-Commerce
Social and Mobile Commerce Will Reshape Discovery and Spending Behaviour
Value-Driven Personalisation and Integrated Commerce Are Set to Drive Growth
Amazon.Com Inc and Pdd Holdings Inc Battle for Consumer Loyalty as Price Wars Intensify
Service Innovation and Personalised Digital Experiences Create Differentiation in Retail E-Commerce
Country Reports Disclaimer
The following categories and subcategories are included:
Retail
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- Convenience Stores
- Forecourt Retailers
- Supermarkets
- Hypermarkets
- Discounters
- Warehouse Clubs
- Food/Drink/Tobacco Specialists
- Small Local Grocers
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- Department Stores
- Variety Stores
- Apparel and Footwear Specialists
- Appliances and Electronics Specialists
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- Home Improvement and Gardening Stores
- Homewares and Home Furnishing Stores
- Pet Shops and Superstores
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- Beauty Specialists
- Pharmacies
- Optical Goods Stores
- Health and Personal Care Stores
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- Bags and Luggage Specialists
- Jewellery and Watch Specialists
- Sports Goods Stores
- Traditional Toys and Games Stores
- Other Non-Grocery Retailers
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- Fashion Vending
- Health and Beauty Vending
- Appliances and Electronics Vending
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- Alcoholic Drinks Vending
- Hot Drinks Vending
- Soft Drinks Vending
- Tobacco Products Vending
- Foods Vending
- Home Products Vending
- Other Products Vending
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- Apparel and Footwear Direct Selling
- Personal Accessories Direct Selling
- Eyewear Direct Selling
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- Beauty and Personal Care Direct Selling
- Consumer Health Direct Selling
- Tissue and Hygiene Direct Selling
- Appliances and Electronics Direct Selling
- Drinks and Tobacco Direct Selling
- Foods Direct Selling
- Home Products Direct Selling
- Other Products Direct Selling
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- Apparel and Footwear E-Commerce
- Personal Accessories E-Commerce
- Eyewear E-Commerce
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- Beauty and Personal Care E-Commerce
- Consumer Health E-Commerce
- Tissue and Hygiene E-Commerce
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- Consumer Appliances E-Commerce
- Consumer Electronics E-Commerce
- Toys and Games E-Commerce
- Drinks and Tobacco E-Commerce
- Foods E-Commerce
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- Home Care E-Commerce
- Home and Garden E-Commerce
- Pet Care E-Commerce
- Other Products E-Commerce
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- First-Party (1P) Marketplace E-Commerce
- Third-Party (3P) Marketplace E-Commerce
- Grocery E-Commerce
- General Merchandiser E-Commerce
- Apparel and Footwear Specialist E-Commerce
- Appliances and Electronics Specialist E-Commerce
- Home Products Specialist E-Commerce
- Health and Beauty Specialist E-Commerce
- Leisure and Personal Goods Specialist E-Commerce
- Other E-Commerce Retailers
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Retail
Retail is the sale of new and used goods to consumers from a business for personal or household consumption from retail outlets, kiosks, market stalls, vending, direct selling and e-commerce. Retail is the aggregation of Retail Offline and Retail E-Commerce. Excludes specialist retailers of motor vehicles, motorcycles, vehicle parts. Also excludes fuel sales, foodservice sales, rental transactions, wholesale sales (e.g. Cash and Carry), and sales through cannabis dispensaries in markets where cannabis is sold legally. Sales value excluding or including VAT/Sales Tax. Retail also excludes the informal retail sector. Informal retailing is retail trade which is not declared to the tax authorities. Informal retailing encompasses (a) sales generated by unregistered and unlicensed retailers, i.e. retailers operating illegally, and (b) any proportion of sales generated by a registered and licensed retailer that is not declared to the tax authorities. Unregistered and unlicensed retailers operate predominantly (although not exclusively) as street hawkers or operate open market stalls, as these channels are harder for the authorities to monitor than permanent outlets. Activities in the illegal market, which is usually understood to refer to trade in illegal, counterfeit or stolen merchandise, are included within our definition of informal retailing. Activities in the “grey market”, which is usually understood to refer to trade in legal merchandise that is sold through unauthorized channels – for example cigarettes bought legally in another country, legally imported, but sold at lower prices than in authorized channels – will be included as informal retailing if no tax is paid on sale by the retailer. However if the retailer pays tax – for example on cigarettes bought legally in another country but sold at a lower price than standard – the sale is included within formal retail.
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This report originates from Passport, our Retail research and analysis database.
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