The grocery market in the kingdom is driven mainly by a rising population, improving education and changing shopping habits but it continues to be fragmented with small stores still accounting for majority of grocery sales. GCG expects big retailers to corner increased market share by opening new stores at the expense of smaller ones as the changing lifestyle of the Saudi population is favouring large format grocery retailers. The report also notes that shopping habits in the kingdom are changing and moving closer to a western lifestyle. This change is driven by a young population which increasingly shops at supermarkets and hypermarkets rather than traditional stores. Even the older generation’s preference for the convenience offered by supermarkets and hypermarkets is pronounced. Given the limited options for entertainment, Saudi families tend to visit large format stores for entertainment.
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