|
|
 |
|
Viewing report
|
|
|
|
Saudi Arabia Retail Report Q1 2011
Business Monitor International, Jan 2011, Pages: 71
The Saudi Arabia Retail Report provides industry professionals and strategists, corporate analysts, retail associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Saudi Arabia's retail industry.
The Q111 BMI Saudi Arabia Retail Report forecasts that the country’s retail sales will grow from an expected SAR99.27bn (US$26.51bn) in 2011 to SAR136.07bn (US$36.34bn) by 2015. Principal factors behind the forecast growth in Saudi Arabia’s retail sales are: strong underlying economic growth, rising disposable incomes, increasing acceptance of the concept of modern retailing, a youthful population andan enlarged consumer base created by the improved position of women in society.
Saudi Arabia’s nominal GDP in 2011 is predicted to be US$474.6bn, with growth of 2.5% expected in 2011. Average annual GDP growth of 3.2% is predicted by BMI between 2011 and 2015. With the population increasing from 26.5mn in 2011 to an estimated 28.6mn by 2015, GDP per capita is predicted to rise to US$22,320 by the end of the forecast period.
The retail sector benefits from the large number of Muslim tourists visiting the country to take part in the hajj and umrah pilgrimages every year. Sales of gifts and souvenirs in 2008 were estimated to have risen by at least SAR4bn (US$1.1bn) due to shopping by hajj pilgrims, according to a Gulf News report.
Increasing urbanisation is also driving retail sales. In 2005, nearly 89% of the population was classified by the UN as urban, rising to an estimated 90% by 2010. The UN also described more than 57% of the population as economically active in 2005, with this proportion forecast to exceed 59% in 2010 and 66%by 2015. About 38% of the population was in the 20-44 age range important to retail sales in 2005, and the UN forecasts that this will rise to about 45% by 2015.
Gap is among the latest international retailers to enter the market. It plans to open 44 Gap stores (and variations) and 10 Banana Republic stores in Saudi Arabia by 2012.
Retail sub-sectors that are predicted by BMI to show strong growth over the forecast period include over the- counter (OTC) pharmaceuticals, with sales expected to increase by more than 47%, from an expected US$0.39bn in 2011 to US$0.57bn by 2014.
With the Saudi consumer electronics market one of the largest in the Gulf, accounting for about 40% of regional spending, sales in this sector are
forecast to increase from an estimated US$4.08bn in 2011 toUS$4.82bn by 2014, a rise of more than 18%. BMI forecasts that per capita consumer electronics spend will reach about US$178 by 2014, driven by youthful demographics, a regional economic boom and a buoyant real estate sector.
High business confidence and increased disposable incomes also provide a favourable background for the automotives sector. Vehicle sales are forecast to rise by almost 20% by the end of the period, from an estimated US$17.93bn to US$21.48bn.
Retail sales for our set of Middle East and Africa (MEA) countries in 2011 are predicted to amount to US$196.69bn, based on the varying national definitions. Total consumer spending for the region based onBMI’s macroeconomic database is forecast at US$722.41bn. In 2011, BMI predicts that South Africa and Israel will together account for an estimated 56.8% of regional retail sales, and their combined share is expected to rise to 57.2% by 2014. For Saudi Arabia, its estimated 2011 market share of 13.5% is expected to decrease slightly to 13.4% by 2014.
Product samples
A sample for this product is available. Please Login/Register to download this sample.
|
|
|
|
