#NextInTheKingdom: Retailing in Saudi Arabia

Saudi Arabia’s retail sector is rapidly transforming under Vision 2030. E-commerce, brick-and-mortar and consumer behaviour are evolving. The panel on Saudi Arabia’s Vision 2030, at MRF 2024, highlighted the Kingdom’s ongoing transformation and its impact on the retail industry.

Moderated by Aamir Allibhoy, Chief Marketing Officer, Tim Hortons Middle East, the session explored opportunities, challenges and strategies that businesses are implementing to adapt to Vision 2030’s objectives.

Mohammad Alawi, Chairman of the Board, of Azad Properties, emphasised that the transformation goes beyond numbers. “It’s about changing the philosophy of people, the structure of the economy and even perceptions abroad.” He elaborated on the growth in tourism, noting, “Saudis rank fourth in G20 for tourist growth, which directly impacts retail and hospitality.” He also highlighted the government’s proactive role, “Labour laws have changed six or seven times since 2016, showing the government’s commitment to adapt to business needs.”

May Kanounji, CEO, Blooming, linked her brand’s growth to Vision 2030, focusing on women’s empowerment. “From our inception in 2016, we’ve empowered women in leadership and across all our stores.” She discussed the retail challenge posed by the expanding entertainment sector, explaining, “We invested in customer experience to create personalised journeys, turning a potential threat into a strength.”

Roberts Bendins, Head of Hyper & Marketplace, Nana spoke on the digital evolution in retail, “When I arrived in Saudi Arabia, 20% of our business was still cash-based. Now, that’s reduced by 8% in just two years.” He emphasised on partnerships in the e-commerce sector saying, “We work closely with Tamimi Markets, integrating online and offline strategies without launching a separate app, which keeps cost efficient for both.”

The session showcased the dynamic growth of Saudi Arabia’s retail sector, emphasising adaptation, integration and empowerment as critical factors for success under Vision 2030. The discussion on this panel also highlighted the impact of e-commerce growth on retail spaces and strategies in Saudi Arabia. Through the discussion, the speakers emphasised on the importance of integrating online and offline experiences, as seen with Nana’s partnerships with other e-grocers and the use of dark kitchens to optimise operations. The focus also shifted to how malls evolve to provide diverse, experiential offerings beyond traditional retail, including entertainment, wellness and food services, making them multi-dimensional destinations. The conversation also explored the rise of homegrown brands in Saudi Arabia, disrupting various sectors like food, fashion and beauty by offering locally relevant products and stories. This emphasis on local identity, customisation and cultural relevance is key to their success, particularly among younger consumers who seek unique, value-driven experiences. The session concluded with an acknowledgment of Saudi Arabia’s growing cosmopolitan nature and the rising trend of celebrating diverse festive occasions in retail environments.