Latest news with #GCCRetail
Khaleej Times
22-05-2025
- Business
- Khaleej Times
GCC retail sector set to hit $390b by 2028, fuelled by digital innovation
The GCC retail industry is on track to reach $390 billion by 2028, propelled by digital transformation, evolving consumer preferences, and strategic government initiatives. Once anchored in traditional brick-and-mortar models, the sector is now a dynamic driver of economic diversification, technological advancement, and consumer-centric growth, positioning the GCC as a global retail innovator, according to a recent report by Logic Consulting. The retail landscape in the GCC is undergoing a profound shift, with 87 per cent of consumers embracing a 'phygital' blend of online and offline purchasing channels, says the report titled 'Revolutionising Retail: Unveiling GCC's Five-Year Transformation'. Shoppers, increasingly digitally fluent and time-sensitive, demand seamless, personalised experiences. This evolution is reshaping retail into a cornerstone of national development, spurring investment in logistics, real estate, and tourism. 'Retail is no longer just transactional; it's a catalyst for economic ecosystems,' noted Haitham Rabie, a lead analyst at Logic Consulting. The GCC's retail market is divided into food and non-food segments, each exhibiting robust growth. Food retail, valued at $127.2 billion in 2023, is projected to reach $162 billion by 2028, driven by urbanisation and changing dietary habits. Non-food retail, encompassing luxury goods, electronics, and fashion, is growing faster with a compound annual growth rate (CAGR) of 6.2 per cent, expected to hit $243.6 billion by 2028. Saudi Arabia and the UAE dominate, accounting for over 75 per cent of regional retail sales, a share set to expand further. Digital innovation is at the heart of this transformation. The rise of quick commerce — ultra-fast delivery within 30 minutes — is redefining consumer access to essentials. Digital-first platforms like Noon and are challenging traditional giants such as Carrefour and Lulu, which are integrating artificial intelligence (AI), live inventory tracking, and omnichannel logistics to stay competitive. AI-driven personalisation and predictive analytics are enhancing e-commerce, creating tailored shopping journeys that resonate with tech-savvy consumers. Physical retail is also evolving. The GCC is expected to add nearly four million square metres of retail space by 2028, but the focus is shifting beyond scale to experiential shopping. Augmented reality try-ons, interactive store designs, and micro-fulfillment centers are becoming standard, blending physical and digital realms. 'Retailers aren't just selling products; they're curating immersive journeys,' Rabie emphasised. A notable trend is the rise of value-driven and sustainable retail. While luxury remains a stronghold, private labels and budget-friendly chains are gaining traction among the growing middle class and price-conscious shoppers. Concurrently, over 50 per cent of GCC consumers now prioritise eco-friendly brands, pushing retailers to adopt sustainable practices. For instance, UAE-based retailer Majid Al Futtaim reported in 2024 that 60 per cent of its customers favored brands with clear environmental commitments, reflecting a regional shift toward purpose-driven consumption. To thrive, retailers must adapt strategically. Logic Consulting outlines five imperatives: crafting a unique selling proposition in a crowded digital market, embracing lean operations and data-driven supply chains, preparing for market consolidation, forging innovative partnerships, and tailoring offerings to local dynamics. These strategies are critical as the GCC retail sector navigates intense competition and rapid technological change. The GCC's retail boom is bolstered by government initiatives, such as Saudi Arabia's Vision 2030 and the UAE's Projects of the 50, which promote private investment and economic diversification. With a young, affluent, and tech-savvy population — over 60 per cent of the GCC's 56 million residents are under 30 — the region is emerging as a global retail hub. 'The GCC isn't just following global trends; it's shaping them,' Rabie said. As the sector reinvents itself, its trajectory will define the region's post-oil economic future, setting a benchmark for innovation and growth.
Trade Arabia
22-05-2025
- Business
- Trade Arabia
GCC retail sector enters bold new era, set for $390bn by 2028
The retail industry in the GCC is undergoing a sweeping transformation. Once dominated by traditional models, the sector has now emerged as a key enabler of economic diversification, technological innovation, and consumer-centric growth, according to a report by LOGIC Consulting. The sector is expanding rapidly and is projected to reach over $390 billion by 2028, driven by digital innovation, changing shopper behavior, and strategic government initiatives, stated LOGIC in its report, titled 'Revolutionizing Retail: Unveiling GCC's Five-Year Transformation.' Retail is no longer just a transactional space in the region, it is becoming a cornerstone of national development agendas, fostering private investment and energizing adjacent sectors such as logistics, real estate, and tourism, it added. The report highlights the evolution of consumer expectations across the GCC. Shoppers are now more digitally fluent, time-sensitive, and experience-driven. With 87% of consumers in the region using both online and offline channels to make purchases, the retail experience is no longer linear - it is 'phygital.' Food, non-food retail on the rise The GCC's retail ecosystem is broadly split into two pillars: food and non-food, each showing robust but distinct growth paths. Food retail is expected to grow from $127.2 billion in 2023 to $162 billion by 2028, supported by rising urbanization and shifting dietary preferences. At the same time, non-food retail – including luxury, electronics, and fashion – is surging faster, with a CAGR of 6.2%, expected to hit $243.6 billion within the same period. Saudi Arabia and the UAE continue to lead the region, representing over 75% of all retail sales today – a share set to grow further. Digital retail taking centrestage From AI-enabled platforms to hyper-personalized e-commerce journeys, retailers are reinventing themselves at breakneck speed. The emergence of 'quick commerce'; ultra-fast delivery in under 30 minutes, is reshaping how consumers access everyday essentials. Digital-first players like Noon and are competing head-to-head with legacy giants such as Carrefour and Lulu, who are now embedding AI, live inventory, and omnichannel logistics into their operating models. The report outlines how organized retail is expanding, with nearly 4 million sq m of new retail space expected by 2028. Yet the future lies beyond square footage, experiential shopping, augmented reality, and predictive personalization are becoming the norm. "Retailers in the GCC are no longer just selling products, they are curating journeys and building ecosystems," stated Rabie. "Success hinges on who can best merge the physical with the digital," he added. The rise of value and purpose While luxury retail continues to thrive, a powerful countertrend is emerging: value-driven retail. Private labels, cooperative societies, and budget-friendly chains are resonating with a growing middle class and price-sensitive consumers, said the report. Simultaneously, ethical and sustainable retail is gaining momentum, with over half of GCC consumers now prioritizing environmentally responsible brands, it added. The report concludes with five strategic calls to action for retailers aiming to thrive in the region's evolving landscape: *Define a compelling USP in a saturated, digitally competitive market. *Embrace operational transformation through lean processes, data intelligence, and agile supply chains. *Navigate market fragmentation with readiness for consolidation and joint ventures. *Build strategic partnerships and ecosystems that drive innovation and speed to market. *Adapt deeply to local market dynamics, tailoring everything from inventory to customer service. As the region becomes a hub for tech-savvy, high-income, and experience-driven consumers, the retail sector is poised to become a defining pillar of the GCC's post-oil economy, stated Rabie.
Zawya
22-05-2025
- Business
- Zawya
GCC retail sector enters bold new era, set for $390bln by 2028
The retail industry in the GCC is undergoing a sweeping transformation. Once dominated by traditional models, the sector has now emerged as a key enabler of economic diversification, technological innovation, and consumer-centric growth, according to a report by LOGIC Consulting. The sector is expanding rapidly and is projected to reach over $390 billion by 2028, driven by digital innovation, changing shopper behavior, and strategic government initiatives, stated LOGIC in its report, titled 'Revolutionizing Retail: Unveiling GCC's Five-Year Transformation.' Retail is no longer just a transactional space in the region, it is becoming a cornerstone of national development agendas, fostering private investment and energizing adjacent sectors such as logistics, real estate, and tourism, it added. The report highlights the evolution of consumer expectations across the GCC. Shoppers are now more digitally fluent, time-sensitive, and experience-driven. With 87% of consumers in the region using both online and offline channels to make purchases, the retail experience is no longer linear - it is 'phygital.' Food, non-food retail on the rise The GCC's retail ecosystem is broadly split into two pillars: food and non-food, each showing robust but distinct growth paths. Food retail is expected to grow from $127.2 billion in 2023 to $162 billion by 2028, supported by rising urbanization and shifting dietary preferences. At the same time, non-food retail – including luxury, electronics, and fashion – is surging faster, with a CAGR of 6.2%, expected to hit $243.6 billion within the same period. Saudi Arabia and the UAE continue to lead the region, representing over 75% of all retail sales today – a share set to grow further. Digital retail taking centrestage From AI-enabled platforms to hyper-personalized e-commerce journeys, retailers are reinventing themselves at breakneck speed. The emergence of 'quick commerce'; ultra-fast delivery in under 30 minutes, is reshaping how consumers access everyday essentials. Digital-first players like Noon and are competing head-to-head with legacy giants such as Carrefour and Lulu, who are now embedding AI, live inventory, and omnichannel logistics into their operating models. The report outlines how organized retail is expanding, with nearly 4 million sq m of new retail space expected by 2028. Yet the future lies beyond square footage, experiential shopping, augmented reality, and predictive personalization are becoming the norm. "Retailers in the GCC are no longer just selling products, they are curating journeys and building ecosystems," stated Rabie. "Success hinges on who can best merge the physical with the digital," he added. The rise of value and purpose While luxury retail continues to thrive, a powerful countertrend is emerging: value-driven retail. Private labels, cooperative societies, and budget-friendly chains are resonating with a growing middle class and price-sensitive consumers, said the report. Simultaneously, ethical and sustainable retail is gaining momentum, with over half of GCC consumers now prioritizing environmentally responsible brands, it added. The report concludes with five strategic calls to action for retailers aiming to thrive in the region's evolving landscape: *Define a compelling USP in a saturated, digitally competitive market. *Embrace operational transformation through lean processes, data intelligence, and agile supply chains. *Navigate market fragmentation with readiness for consolidation and joint ventures. *Build strategic partnerships and ecosystems that drive innovation and speed to market. *Adapt deeply to local market dynamics, tailoring everything from inventory to customer service. As the region becomes a hub for tech-savvy, high-income, and experience-driven consumers, the retail sector is poised to become a defining pillar of the GCC's post-oil economy, stated Rabie. "The GCC is not just catching up to global retail trends, it is helping define them," he noted. "This is a moment of reinvention, and those who lead now will set the tone for the next decade," he added. Copyright 2024 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (
