The report
titled “Riyadh
Retail Market Outlook to 2023 - Dominance of Online Shopping and Emergence of
International Brands to Fuel Demand” provides information on
overview of the overview of retail market, factors influencing the sector of
retailing in Riyadh, supply and demand assessment, future potential, market
insight and performance, average rental rates, average occupancy rates of malls
in Riyadh, retail outlook, opportunities and future development trends, key
upcoming malls in Riyadh city,
recommendations regarding success factors of retail market in Riyadh,
key features and characteristics of retail space in Saudi Arabia and case studies
of 6 retail centers in Riyadh city. The report concludes with the competitive
analysis of case studies; cross comparison within retail malls in Riyadh and
with heat map analysis for case studies.
Overview of Retail
Market in GCC and Demographics of Riyadh City
The city
of Riyadh is located in the central part of Saudi Arabia and the Arabian
Peninsula as a whole and is in the eastern area of Najd. The city has
experienced unprecedented growth in the population, as between 1930 and the
early 21st century the population has increased from 27,000 to over 6.5 million.
Riyadh has a young population with more than half of residents under the age of
20 years old and less than one-fifth being older than 60.
Factors Influencing the
Sector of Retailing in Riyadh
Lifting
ban from cinemas in Saudi Arabia has opened doors for investment in the
entertainment sector, thus reflecting a great potential in the demand for
retail sector in Riyadh city. Central region was observed as the most
attractive area for establishment of retail projects owing to quality
infrastructure, financial districts, high population and better connectivity
with other regions. Some of the other major factors influencing Riyadh retail
market include increase in retail spending, implementation of VAT, tourism,
population and demographics, rising disposable income, emerging supermarkets
and hypermarkets, entrance of international brands, relaxation of investment
regulation, tenant mix and climate conditions.
Supply and Demand
Assessment
The
retail market in Riyadh has witnessed oversupply of retail space during
2013-2018. The retail supply has escalated at a CAGR of 11.1% from 2013 to 2018
owing to government implementing several key initiatives such as allowance of
100.0% FDI in retail sector and lifting ban from cinemas. The demand has
although declined from last year primarily due to implementation of VAT by the
government. There has been oversupply in terms of retail units within the
country due to a deceleration in economic growth triggered by the fall in oil
prices. In future, with implementation of Saudization policy by the government,
increase in number of cinemas and other factors, it is anticipated that the
supply-demand gap will decline in the retail market in Riyadh.
Market Insight and
Performance
After
witnessing a growth for the last four years, the demand for retail space in
Riyadh witnessed a decline in the year 2018 owing primarily to introduction of
VAT coupled with other factors such as rising e-commerce retail. Among
different mall categories, super-regional malls had the highest occupancy rate
in 2018, followed by regional malls and community centers. Average rentals
rates have also declined over the last year reflecting the decline in demand.
With new reforms kicking in, the retail market will witness a surge in the near
future.
Competition Analysis
of Retails in Riyadh
Over the
past few years, the landscape of Riyadh’s retail sector has transformed from a
conventional market place comprising unorganized independent stores and shops
to organized large-scale shopping malls and hypermarkets that house the largest
global brands. The retail sector in Riyadh is now highly competitive. Given the
fragmented nature of Riyadh’s retail sector and rising popularity of organized
retail, consolidation is likely with larger players growing inorganically to
capture market share. These players keep innovating on strategies like product
differentiation, price-related offers along with placing the mall distinctively
in the minds of patrons through various entertainment packages like amusement
parks and food courts.
Future Outlook and
Development Trends
Despite
facing difficulties over the past years, the retail market in the KSA is
expected to maintain an overall positive outlook due to multiple reforms that
are being presently planned and executed by the Saudi Arabian government. The
most prominent of these reforms include allowance of 100.0% FDI in retail
sector, lifting of ban from cinemas and implementation of Saudization. These
reforms over the long term aim at overcoming the multiple obstacles that are being
faced by the retail sector such as the decline in the rental rates and the
oversupply situation. Emergence of international brands has been gaining
popularity in the retail market. Some of the key expected upcoming retail
projects in the KSA include Cordoba Boulevard, Al Diriyah Festival City Mall,
City Center Ishbiliyah, and Mall of Saudi.
Key Segments Covered:-
Type of Malls
Super-Regional
Malls
Regional
Malls
Community
Center Malls
Key Target Audience:-
Retail
Project Developers
Third
Party Real Estate Companies
Independent
Architects
Government
Associations
Government
Agencies
Independent
Investors
Retail Real
Estate Consulting Companies
Time Period Captured in the Report:-
Historical Period –
2013-2018
Forecast Period –
2019-2023
Riyadh Retail Malls
Case Studies Covered:-
Pure Mall
Al Oruba
Square
Canary
Center
Localizer
Mall
Granada
Center
Centria
Mall
Key Topics Covered in
the Report:-
Overview Of Retail Market
Factors Influencing Riyadh Retail Market
Demand And Supply Assessment In Riyadh
Retail Market
Future Market Potential
Market Insight And Performance
Average Rental Rates For Malls And Restaurants
Key Upcoming Malls In Riyadh
Future Trends In Retail Market
Recommendations Regarding Success Factors Of Retail Market In
Riyadh
Key Features And Characteristics Of Retail Space In Saudi
Arabia
Case Studies Of Major Retail Centers In Riyadh
Pure Mall
Al Oruba Square
Canary Center
Localizer Mall
Granada Center
Centria Mall
Competitive Analysis Of Case Studies
Cross Comparison Within Retail Malls In Riyadh
Heat Map Analysis Of Riyadh Retail Malls
For more information on the research report, refer to below
link:-
Related Reports:-
Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
Sales@kenresearch.com
+91-9015378249
Ken Research
Ankur Gupta, Head Marketing & Communications
Sales@kenresearch.com
+91-9015378249