Saudi retail sector 'set for growth'
Riyadh, March 5, 2013
The Saudi retail sector’s strong earnings growth is expected to continue despite some concern over wage inflation due to Saudization of jobs, a report said.
Expansions through opening of new stores, margin support from economies of scale and consolidation of fragmented markets are key drivers of profit growth, said the NCB Capital report.
Price-led competition also remains a key concern, said the report.
Consolidation of fragmented sectors which are dominated by independent stores is a key theme for the Saudi retail market, it said.
“Extra, Jarir and Al Othaim are well positioned to benefit from this structural trend in their respective sectors, leading to 30-50 percent expansion in their store count over the coming five years. Al Hokair has already consolidated the Saudi mid-market fashion segment, with potential growth coming from expansion in the value-segment and opening stores abroad,” the report said.
More Retail & Wholesale Stories
- Bebe unveils women’s summer clothing range
- Eros opens 33rd retail store in UAE
- iMena Holdings invests in Desado.com
- One-third of Mena consumers shopping online
- Panasonic unveils tablet range in UAE
- Fragrance retailer Arabian Oud ranked 11th
- LuLu in deal to manage Adnoc mall
- Being Human launches women’s wear line
- River Island opens accessory store in Kuwait
- Samsung launches new Galaxy Tab 3 Series