Top five trends shaping KSA retail industry

Saudis visit the International Coffee and Chocolate Exhibition held at the Riyadh International Convention and Exhibition Center in the capital Riyadh on December 4, 2017. (AFP)
Updated 23 April 2019

Top five trends shaping KSA retail industry

  • Artificial intelligence can identify consumer preferences with great accuracy

RIYADH: The Kingdom has a vast, young, tech-savvy population that is shifting behavior in Saudi Arabia, according to Ahmed Reda, MENA consumer industry leader for Ernst and Young (EY).
EY worked with more than 200 business leaders, futurists and industry experts through its FutureConsumer.Now program (FCN) to map the buying habits of consumers. “We asked questions such as how will consumers shop, eat, stay healthy, live, use technology, play, work and move in the future?” Reda said.
Here are some of the key trends powering the shift in consumer behavior and the retail industry in the GCC’s largest consumer base.
Data analytics and AI transforming traditional retail models: The new breed of GCC consumer expects a highly personalized experience. This will be even more critical as brand loyalty declines among GCC consumers. As analytics tools become increasingly sophisticated, the value of personalized data will grow. Artificial intelligence can identify consumer preferences with great accuracy.
Brands need to implement omnichannel strategies: In markets such as Saudi Arabia, which has some of the most affluent consumers, omnichannel strategies (any time, any place) are vital for companies to craft a user experience that cuts across online shopping, social media, mobile apps and conventional stores.
Physical stores still have a place: Online shopping has reduced the need for people to visit shops. Physical stores will still be a powerful asset if they are used for more than shopping. Retailers have a portfolio of well-located spaces that can be repurposed.
Rise of e-commerce: Physical stores won’t disappear, but the high penetration of smartphones and digital services has transformed the behavior of GCC consumers.
Value-seeking behavior after VAT: In a market that has been tax-free, the introduction of VAT, even at a relatively low rate of 5 percent, has caused a shift in consumer behavior. The average Saudi consumer is more cost-conscious than ever. Companies that can tap into additional value through economies of scale, or provide greater convenience, will reap the rewards. 

Diplomatic Quarter: Envoys extend Eid greetings to Saudis

Updated 28 May 2020

Diplomatic Quarter: Envoys extend Eid greetings to Saudis

RIYADH: Foreign ambassadors to Saudi Arabia have been passing on their Eid Al-Fitr greetings to the government and people of the Kingdom.

The US Mission in the Kingdom, tweeted: “The US Ambassador to Saudi Arabia John Abizaid on behalf of all Americans living and working in the Kingdom of Saudi Arabia greeted saying, I would like to take this opportunity to wish Eid Mubarak to the Custodian of the Two Holy Mosques King Salman, Crown Prince Mohammed bin Salman, and all our Saudi friends and colleagues as you celebrate this special holiday.

“May your Eid be joyous, even in this challenging time as we work together to fight (the) coronavirus (disease) COVID-19.”

In a tweet, the Australian ambassador in Riyadh, Ridwaan Jadwat, said: “Wishing everyone celebrating the end of Ramadan a joyous Eid Al-Fitr on behalf of my family and our embassy team: #EidMubarak!”

Posting a video message to the Saudi people, he added: “May I say on behalf of my family and the team here at the Australian Embassy in Riyadh, I hope that you have a safe, happy and blessed Eid Al-Fitr.”

Indian Ambassador to Saudi Arabia Dr. Ausaf Sayeed, said: “May you all be blessed with #Peace, #Joy and #Love on #EidUlFitr and always! #EidMubarak to you and your families.”

Eid Al-Fitr celebrations this year have been curtailed due to the COVID-19 pandemic. The holy month of Ramadan and the festival of Eid in 2020 will be remembered as a time when traditions had to be broken to stop the spread of the deadly virus.

In a message addressing Saudis, the Pakistani community in the Kingdom, and Muslims around the world, Pakistan’s consul general in Jeddah, Khalid Majid, said: “This year, we are celebrating Eid in a very simple and somber manner. Undoubtedly, the world is passing through one of the most difficult times due to the COVID-19 global pandemic, which has badly affected our socio-economic life.”

He added that many people had already lost their lives to the disease while large numbers were still battling with it.

“Besides, the death of around 100 of our Pakistani brethren in a recent PIA (Pakistan International Airlines) plane crash at Karachi has also left us sad and gloomy. My sincere prayers are with all those who lost their lives and also with their bereaved families. At the same time, I also sincerely pray for the good health and speedy recovery of all the COVID-19 patients.

“My deep appreciation and prayers for continued success also goes to all our frontline soldiers including doctors, paramedics, law enforcement agencies and all other involved departments, who are fighting against this deadly virus, at the risk of their own lives.

“I take this opportunity to convey my deepest gratitude to King Salman and Crown Prince Mohammed bin Salman for taking very effective measures against the COVID-19 pandemic. Provision of best health facilities and efficient other services across the Kingdom are instrumental in effectively tackling the situation. It is evident from these steps that the recovery rate in the Kingdom is one of the highest in the world,” Majid said.

“I advise all Pakistanis living in Saudi Arabia to continue abiding by all local health and safety instructions, including those relating to social distancing, so that we can all be safe and play our part in strengthening the efforts of the Saudi government in defeating this pandemic.”