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In 2023, fashion accounted for ** percent of retail trade in Saudi Arabia. The remaining ** percent of retail trade consisted of electronics, groceries, and other categories. From 2023 to 2028, the compound annual growth rate (CAGR) is expected to increase from *** to percent.

 Saudi Arabia’s retail market

The Kingdom’s retail industry lists among the most appealing markets worldwide. Saudi Arabia had the highest retail market attractiveness score in the MENA region thanks to a combination of a young, dynamic population, aligned economic reforms, and rising income levels, among others. However, it is worth highlighting that the total retail sales as a share of GDP in the country have experienced a slight decline recently.

The COVID-19 pandemic created a change in retail buying behavior in the Kingdom. This change increased online shopping habits in the post-pandemic years, primarily for groceries, food, and beverages, as well as cleaning products. Nevertheless, despite these changes favoring online retail, the e-commerce share of total retail remained around percent as of 2022.

Retail market in MENA

The region’s traditional retail, which is mostly characterized by small and independent stores, has an influential role in the market despite the growing dominance of e-commerce and large retail chains. As of 2022, the annual growth rate of retail e-commerce sales in the Middle East and North Africa was ** percent, a regional rate that was second only to Latin America. When it comes to fashion, offline sales channels are forecast to remain the dominant way of shopping in MENA in the coming years.