298 billion riyals is the volume of retail market sales in the Kingdom
The director of the retail sector development department at the General Authority for Small and Medium Enterprises, Mahmoud bin Abdulkarim Mazi, confirmed that the growing retail trade in the Saudi domestic markets was affected by several factors (internal and external), which made the sector face several challenges that require treatment.
During a workshop entitled "Development of the retail sector" organized remotely by the Asharqia Chamber on the evening of Wednesday, February 24, 2021, and moderated by the Chairman of the Commercial Committee Hani Al-Afaliq, Mazi explained that the retail trade includes 420 activities, including food and beverages, various services, vehicle repair, clothing and textiles, and others The sector is the second-largest contributor to the non-oil GDP, at 298 billion riyals, and it is expected that the volume of retail market sales will increase to 3 times the current size in 2030.
He added that the retail sector employs about two million workers, between Saudi and non-Saudi, and based on the expected increase in the size of the sector, the sector is expected to generate approximately 750,000 additional jobs, between replacing some jobs or generating new jobs based on the development in the sector
He mentioned that the retail sector was affected by several internal and external factors, including the Corona pandemic, which forced small and medium enterprises operating in retail to adapt their operations and re-set priorities to ensure business continuity.
He added that one of the factors, which is related to the previous factor, is digital transformation and new technologies, as the high growth of e-commerce driven by the spread of Covid 19 and the increase in the use of emerging technologies has led to changing business models and the consumer experience.
He pointed out that among the influencing factors is the increased focus of both the producer (or merchant) and the consumer on sustainability, health, and rationalization of consumption in the retail sector.
He mentioned that the success of the Saudi citizen in the retail market requires to overcome some challenges that need to be addressed, including the saturation of the market from the stores, so that competition has become limited to prices, the control of expatriate workers over some activities of the retail market, and the lack of experience - in return for many citizens, in addition to a decrease profitability in the retail market due to the citizen's rationalization behavior, and the high costs for those wishing to enter the retail sector, in addition to the problem of commercial concealment.
