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Navigating retail’s future: Saudi Retail Forum 2023 sets the stage for KSA’s Vision 2030

Daniel ShepherdJanuary 9, 2024, 4:10 pmJanuary 9, 2024

The Saudi Retail Forum (SRF) 2023, hosted by IMAGES RetailME, concluded its inaugural edition in Riyadh, Saudi Arabia, marking a milestone in unravelling the future of the GCC region’s retail industry.

SRF 2023 served as a platform to honour and recognise key contributors to the retail industry, applauding their innovative initiatives. The culmination of the SRF in Riyadh brought together entrepreneurs, leaders, innovators, and global retail giants, echoing the legacy of the Middle East Retail Forum (MRF) initiated 12 years ago in the UAE. Through the SRF, IMAGES RetailME aimed to foster discussions around the retail sector and cultivate a fertile ground for impactful conversations that chart the future of retail in the Middle East and beyond.

Research says the KSA retail industry is poised for robust growth over the next five years, driven by factors such as increasing consumer spending, a growing population, and the KSA government’s initiatives to boost the non-oil sector. Forecasts indicate a compound annual growth rate (CAGR) of 7.2% from 2023 to 2028, reaching a market value of $142 billion by the end of this period. E-commerce is anticipated to play a pivotal role, with a projected CAGR of 15%, reflecting the evolving consumer preferences and digital transformation in the Saudi retail landscape.

The SRF navigated a diverse array of topics, unlocking the treasure chest of retail opportunities that lie ahead for Saudi Arabia. From Retail Tech Vision 2030 to the future-forward landscape of shopping centres, the forum explored the pulse of evolving consumer behaviour and the transformative power of technology, particularly in AI-driven marketing. Also, the culinary playbook unfolded a flavourful journey, while a spotlight on Saudi fashion and lifestyle revealed a market poised for revolutionary trends. With a keen focus on homegrown initiatives ready to make a global impact, the forum explored the dynamics of e-commerce in the KSA.

The CEO’s Agenda took centre stage as the key session during the forum, drawing key CXOs to root into the immense potential of the Saudi Retail Market.

Speaking at the panel, Shehim Muhammed, Director of LuLu Saudi Hypermarkets shed light on the dynamic shift in the KSA retail landscape. “A $125 billion journey represents the shift of KSA retail brands from a 20% organized retail sector in 2010 to 80% by 2030. Despite inflation challenges, the tug-of-war between affordability and sustainability is evident, with the rising influence of female consumers, projecting 85% discretionary spending by 2030. Further, we believe in collaborative AI implementation to make online commerce profitable, recognizing its current secret of the retail market expansion.”

Neeraj Teckchandani, Group CEO of Apparel Group, highlights key trends in the fashion industry, said “As seen in brands like Lululemon, customization, exemplified by Crocs, contributes to the retail industry significantly. Additionally, sustainability practices are surging, with consumers willing to pay 30-40% more. Recognizing the shift, we at Apparel Group launched five global initiatives and we understand the necessity of long-term sustainability, essential for the evolving preferences of Gen Z and Gen Alpha.”

Mohammed Naji Al-Assaf, CEO of Majid Al Futtaim Retail in Saudi Arabia, emphasizes the need for a joint effort in sustainability among retailers, producers, customers, and the Government. He challenged the misconception of the grocery business as masculine, highlighting the increasing presence of female leaders. Further, Al-Assaf sees the coexistence of physical and digital channels as crucial in the grocery industry, stressing the irreplaceable human touch in customer interactions.

As the Founding Partner and CEO of Brands for Less, Toufic Kreidieh said, “KSA consumers are willing to pay extra for sustainability, with 20% open to an 11-20% price increase.” Addressing the challenge of promoting local brands, he urges retail groups to champion initiatives that integrate them into portfolios. Kreidieh added, “Digital transformation should not be considered as a competition but a tool to enhance the omnichannel experience. Embracing technology, including artificial intelligence, is essential for business progress, ensuring a favourable wind in the storm of change. The future holds limitless possibilities for customer service, even envisioning AI-enabled robots in retail stores.”

Emphasizing the transformative power of the younger generation in the Middle East, Tawhid Abdulla Founder and CEO of Jawhara Jewellery expressed his expertise in the Jewellery industry said, “showcasing young individuals’ creativity in overcoming challenges in the jewellery industry.” Addressing a gap in retail, Abdulla urges the establishment of institutes to groom local talents, fostering entrepreneurship and career development has been critical in KSA, and recognising the evolving independence of Arab women, he underscores their influential role in shaping retail demands.

The CIO’s Conclave: Retail Tech Vision 2030 session added value to the main panel at the SRF and focused on the future of retail technology in the KSA. The session brought together CIOs from various companies to discuss and explore the vision for retail technology in the year 2030. Topics covered include the use of AI, technology trends, digital transformation, and innovative solutions in the retail industry. The session provided insights and strategies for CIOs to navigate the evolving technological landscape and strategically use the technology to drive growth and enhance customer experiences.

The IMAGES RetailME Awards KSA, following the SRF, commended outstanding retailers in Saudi Arabia across diverse categories such as fashion, food, grocery, leisure, entertainment, online retail, and store design. Emphasizing both global and home-grown retail concepts, this year witnessed a remarkable moment as a total of 28 brands were honoured during the gala ceremony. The IMAGES RetailME Awards KSA was a culmination of a rigorous review by a qualified jury, celebrated excellence in the retail landscape with a prestigious gathering.

List of awardees:

Most Admired Retailer of the Year: BEAUTY & WELLNESS
Charlotte Tilbury
Most Admired Retailer of the Year: FOOD & GROCERY
LuLu Hypermarket
Most Admired Retailer of the Year: CHILDREN’S WEAR
Baby Fitaihi
Most Admired Retailer of the Year: FOOTWEAR & ACCESSORIES
SKECHERS
Most Admired Retailer of the Year: PHARMACY & HEALTHCARE
Nahdi Medical Company
Most Admired LEISURE & ENTERTAINMENT RETAILER of the Year
Monopoly Lifesized Riyadh
Most Admired RESPONSIBLE RETAILER of the Year
LuLu Hypermarket
Most Admired E-COMMERCE RETAILER of the Year
IKEA
Most Admired Retailer of the Year: HOME & HOUSEWARE
Nice
Most Admired Value Retailer: Fashion
Brands For Less
Most Admired Value Retailer: Food & Grocery
Panda Retail Company
Most Admired TRANSFORMATION OF THE YEAR IN THE FOOD SERVICE SECTOR
KUDU
Most Admired CUSTOMER SERVICE INITIATIVE of the Year
REDTAG
Most Admired CUSTOMER SERVICE INITIATIVE of the Year
Giordano
Most Admired Emerging Tech Adopter of the Year
Panda Retail Company
Most Admired RETAIL TRANSFORMATION of the Year
Steve Madden
Most Admired Retail Launch of the Year
ASICS
Most Admired Experiential Retailer of the Year
Cold Stone Creamery
Most Admired STORE DESIGN of the Year: FASHION & LIFESTYLE
DREAM
Most Admired STORE DESIGN of the Year: FOOD SERVICE
STARBUCKS
Most Admired STORE DESIGN of the Year: LEISURE & ENTERTAINMENT
CoComelon Playdate Riyadh
Most Admired STORE DESIGN of the Year: FOOD & GROCERY
Manuel Supermarket
Most Admired STORE DESIGN of the Year: PHARMACY & HEALTHCARE
Nahdi Medical Company
Most Admired BRAND CAMPAIGN of the Year: Home & Houseware
IKEA
Most Admired BRAND CAMPAIGN of the Year: Food Service
Tim Hortons
Most Admired BRAND CAMPAIGN of the Year: Fashion & Lifestyle
Nayomi
Most Admired RESPONSIBLE RETAILER of the Year
Al Hokair Group
Most Admired RESPONSIBLE RETAILER of the Year
TOMS

 

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