Retail in 2024: The big picture
Despite lingering budget constraints among some consumers due to elevated living costs towards the end of the review period, thereby slowing overall growth in the local industry, retail in the United Arab Emirates continued to record a positive performance in 2024, driven by a steady population increase, an influx of affluent workers, and rising disposable incomes among some segments. Outlet openings also slowed as retailers prioritised profitability and an omnichannel presence.
Higher polarisation with premiumisation rising while consumers remain under pressure
The retail ecosystem in the United Arab Emirates presented two contrasting scenarios in 2024. On the one hand, some consumers have been feeling the impact of inflation and rising real estate prices, leading them to seek value propositions.
More strategic partnerships form as competition intensifies
2024 was characterised by heightened competition across various retail channels, prompting players to form strategic partnerships in an attempt to widen their reach and gain share. For instance, Noon AD Holdings One Person Co LLC, one of the leading players in retail e-commerce, has collaborated with Emirates NBD (financial services and online banking) to launch a co-branded Visa credit card.
What next for retail?
Retail in the United Arab Emirates is expected to record further value growth over the forecast period, supported by an improving economy and an expanding population, while being bolstered by initiatives such as the Dubai 2033 Economic Agenda, which aims to enhance the nation’s commercial strategy for the next decade while simultaneously increasing foreign trade and investment.
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Overview:
Understand the latest market trends and future growth opportunities for the Retail industry in United Arab Emirates 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 United Arab Emirates, 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 United Arab Emirates 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 United Arab Emirates?
- Which are the leading retailers in Retail in United Arab Emirates?
- How are products distributed in Retail in United Arab Emirates?
- 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 United Arab Emirates?
- 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 the United Arab Emirates
Retail in 2024: The big picture
Higher polarisation with premiumisation rising while consumers remain under pressure
More strategic partnerships form as competition intensifies
What next for retail?
Informal retail
Opening hours for physical retail
Seasonality
Dubai Shopping Festival (“DSF”)
Dubai Summer Surprises (“DSS”)
Back to School
Super Sales
White Friday
APPENDIX
DISCLAIMER
Convenience Retailers in the United Arab Emirates
KEY DATA FINDINGS
Convenience stores benefits from stable socioeconomic conditions
ADNOC Oasis remains largest chain of forecourt retailers
Convenience stores face intensified competition from on-demand delivery
Convenience retailers set to benefit from further expansion
ADNOC Oasis will likely set a new pace in forecourt retailers
Convenience store offerings will continue evolving to meet consumer needs
Supermarkets in the United Arab Emirates
KEY DATA FINDINGS
Expansion into new communities supports solid growth of supermarkets
Spinneys Dubai retains lead as it benefits from defined offerings
Abu Dhabi Cooperative Society consolidates operations under MAIR Group
Investment and population expansion are growth opportunities
Private label set to become increasingly relevant in local market
Retail e-commerce as another growth avenue for supermarkets
Hypermarkets in the United Arab Emirates
KEY DATA FINDINGS
Hypermarkets continues to dominate sales within grocery retailers
Lulu sells 30% stake through IPO in Abu Dhabi
Digitalisation continues to transform operating activities
Hypermarkets set to benefit from further store expansion
Competition will intensify between private sector and cooperatives
Hypermarkets to broaden wellness and sustainable offerings
Discounters in the United Arab Emirates
KEY DATA FINDINGS
Discounters expands as consumers experience budget constraints
Viva makes strides and drives channel growth
Viva’s business model allows it to pass on savings to customers
Growth set to slow as channel matures in local market
Viva’s meteoric rise could attract new discounters
Private label may emerge as a key strategy among grocery retailers but brand value will matter
Small Local Grocers in the United Arab Emirates
KEY DATA FINDINGS
Small local grocers struggles to access new communities and loses momentum
Some food/drink/tobacco specialists still attract considerable demand
Despite digital development, small local grocers lags behind large grocery retailers
Small local grocers is set to lose ground over the forecast period
The liberalisation of alcohol in Abu Dhabi offers opportunities for drinks specialists
Digitalisation could potentially revitalise operations of small local grocers
General Merchandise Stores in the United Arab Emirates
KEY DATA FINDINGS
Department stores impacted by intensified competition with marketplaces
Variety stores continues to rise, supported by demand for value propositions
Landmark Group leads general merchandise stores
Department stores set to reinvent selling space in local market
Sustainable offerings likely to reshape variety stores
Differentiation will be increasingly important to gain a competitive edge
Apparel and Footwear Specialists in the United Arab Emirates
KEY DATA FINDINGS
Growth continues due to local market’s position as shopping destination
Landmark Group consolidates lead in apparel and footwear specialists
Majid Al Futtaim strengthens partnership with Tabby to expand BNPL offerings
Apparel and footwear specialists to further benefit from positioning in local market
Sustainability set to gain relevance due to rising environmental awareness
Competition will continue to intensify in mid-priced segment
Appliances and Electronics Specialists in the United Arab Emirates
KEY DATA FINDINGS
Appliances and electronics specialists benefits from favourable operating conditions
Sharaf DG strengthens lead despite intensified competition
Competition intensifies among smaller players
Channel predicted to benefit from stable environment
Diversified offerings in smart and sustainable appliances likely to emerge
Local expansion in manufacturing could strengthen value chain
Home Products Specialists in the United Arab Emirates
KEY DATA FINDINGS
Population expansion spurs growth of home products specialists
Landmark Group strengthens lead in home products specialists
Pet shops and superstores continues to expand as demand for pet products rises
Home products specialists to benefit from favourable market conditions
Technology and sustainability to help drive demand
Ikea focuses on accessibility, affordability and sustainability to attract consumers
Health and Beauty Specialists in the United Arab Emirates
KEY DATA FINDINGS
Health and beauty specialists benefits from momentum in wellness
Competition intensifies in luxury beauty as new players enter local market
Life Healthcare introduces discount pharmacy
Health and beauty specialists set to continue expanding in local market
New regulations to strengthen locally sourced products for pharmacies
Sustainability will continue to shape channel’s development
Vending in the United Arab Emirates
KEY DATA FINDINGS
Vending continues to expand, driven by convenience and innovation
Jackson Trading leads, while Ex Oriente Lux AG continues to lose ground
Unattended and smart payment solutions continue to evolve in vending
Vending set to register further dynamic growth over the forecast period
RTA launches smart kiosks to offer greater convenience to drivers
Vending becomes popular channel for new concept testing
Direct Selling in the United Arab Emirates
KEY DATA FINDINGS
Direct selling growth continues to be supported by health and wellness
Oasis Water Co maintains lead in highly fragmented competitive landscape
Beauty brands traditionally operating direct selling model see blurring of lines
Increasing concerns over data protection could affect direct selling
Sustainability will remain a key driver over the forecast period
Influencer marketing can become the new norm for direct selling
Retail E-Commerce in the United Arab Emirates
KEY DATA FINDINGS
Retail e-commerce continues to thrive as offerings diversify
Carrefour takes on-demand delivery service to the next level
Emirates NBD and Noon join forces with Visa to launch co-branded credit card
Retail e-commerce’s growth expected to ease in line with large consumer base
Competition set to intensify as the market slowly matures
Improving penetration of BNPL solutions likely to boost sales
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, and wholesale sales (e.g. Cash and Carry). 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.
See all of our definitionsWhy buy this report?
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This report originates from Passport, our Retail research and analysis database.
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