GCC retail industry sales to jump at a CAGR of 4.6% to US$386.9 billion in 2028 from US$309.6 billion in 2023 – revealed at Middle East Retail Forum 2024

GCC retail industry sales to jump at a CAGR of 4.6% to US$386.9 billion in 2028 from US$309.6 billion in 2023 – revealed at Middle East Retail Forum 2024

Taking on the theme of “The Power of Next”, the Middle East Retail Forum 2024 coalesced entrepreneurs, professionals, innovators, and thinkers to forecast the future of retail in the GCC.

Date: Dubai, UAE; September 30, 2024

The retail industry in the GCC is projected to boom at a compound annual growth rate (CAGR) of 4.6 percent to US$396.9 billion in 2028 from US$309.6 billion in 2023, according to the GCC Retail Industry report by Alpen Capital revealed at the 13^th edition of the Middle East Forum (MRF) on September 26, 2024, at JW Marriott Hotel Marina, Dubai. The industry leaders at the forum highlighted the potential of the thriving market, exploring factors and trends that will pump more investment into the region.

The highly anticipated MRF 2024 convened over 500 attendees from 300+ brands, 100+ thought leaders, and 10+ sessions, establishing an electrifying platform for enthusiasts and key players of the retail sector. Entailing a series of thought-provoking panel discussions, market reports and book launch, and success stories of industry leaders, the forum explored insights, trends, and game-changing strategies that offered a glimpse of the future of retail. The day’s sessions spotlighted retail intelligence through sessions that were built keeping key retail trends and futuristic visions. The conference was followed by the annual IMAGES RetailME Awards to honour best practices and efforts of the retail fraternity.

Amitabh Taneja, Chairman of Images Group, said, “The Middle East Retail Forum serves as a holistic platform for the diverse retail community to gather, address challenges, and brainstorm solutions. This year’s forum highlighted the future of retail, and we predict notable advancements in the market enabled by the integration of latest technologies.”

Organised by IMAGES GROUP, the MRF embraced this year’s theme “The Power of Next” to seek “What’s Next?” in the retail landscape of the UAE, MENA, and beyond. It commenced with a consumer industry analysis by Deloitte, a global advisory body. The session covered industry defining factors like inflation, personal finance, and cross-border purchases, and how they impact retail purchases in the global, UAE, and Saudi Arabian landscapes.

Studying Deloitte’s monthly consumer survey, Joerg Meiser, Partner, ME Consumer & Retail strategy Lead, Deloitte, concluded, “Compared to global inflationary figure touching 73 percent in 2024, the UAE and Saudi market experienced 66 percent and 62 percent inflationary increase over the year, respectively. This resulted in cautious behaviour by the Middle Eastern consumers, who seek value more than ever.”

Furthermore, the session touched upon trends responsible for industry upheaval, including experience-led commerce, omnichannel, role of social commerce, and rise of global shopping platforms.

It was followed by a panel discussion with the region’s key retail leaders like Mumzworld, Grandiose, and Jumbo Electronics who addressed prevalent issues like changing customer preferences, the fertile investment landscape of the Middle East, traditional brick and mortar versus e-commerce, increasing digital footprint, potential geographical locations for brand expansion, and sustainability.

The panel pointed out the influence of social media on driving business. Emin Imer, General Manager of Turkish e-commerce platform Hepsiglobal, noted that micro influencers can be instrumental for marketing. He said, “Consumers are drawn to micro influencers more than macro or high-end social media personalities. As a leader in electronics sector in Turkey, Hepsiglobal works with gamers to market both products and experiences on social media, thereby touching that niche quite easily.”

Following the panel discussion, Zebra Technologies showcased an impressive AI-powered check-out solution, offering a sneak-peek into the tech-driven retail stores of the future.

Farid Vakil, Regional Channel Head of Zebra Technologies, introduced the innovation by saying, “Based on the valuable feedback from the retail community, we have put together a solution that is AI-backed to distinguish products, mitigate ticket-switching, and enable different check-out options, facilitating personalised consumer experience at stores.”

The future of Alshaya Group, one of the world’s leading brand franchise operators facilitating a new wave of retail in the Middle East , was spotlighted during a fireside chat with the group’s Chief Operating Officer (COO), Steve Vickerstaff. He shared a large-scale expansion plan in the KSA to establish the brand’s legacy in line with the country’s Vision 2030 through persistent growth, innovation, and transformation.

Commenting on the vibrant retail landscape of KSA, Steve Vickerstaff, COO of Alshaya Group, said, “Despite being highly challenging, the Saudi market is the biggest in the region due to its countless opportunities and large population. With expansion in progress, we have already achieved significant milestones, especially in our workforce, which comprises of 100 percent Saudi nationals while also maintaining gender equality. In fact, we are the country’s largest private sector employer of female employees.”

The Kingdom’s potential was further emphasized in Alpen Capital’s thorough GCC Industry Report. Besides the UAE, Saudi Arabia boasts the largest market in the GCC, with both countries making up 75.3 percent of the GCC retail market in 2023. This will shape the GCC landscape in the next four years, with sales projected to reach US$396.9 billion by 2028. The report also shed light upon challenges and opportunities, along with key drivers of growth and subsequent evolution of retail in the region.

To further establish IMAGES’s vision to be a facilitator of retail growth through collaboration, The MENA Retail Compass, an exclusive annual research compilation was launched ceremoniously during MRF. This coffee table book is ready to become an annual property and a ready reckoner for the retailers and brands to know ‘what next’ as it offers an insightful overview of the retail landscape across the Middle East and North Africa (MENA) region. It brings together trend reports, category landscapes, and growth opportunities awaiting retailers in this dynamic market.

Drawing from the expertise of leading consultants and industry specialists from Deloitte, Kearney, CBRE, KPMG, and more, this report forecasts emerging trends and highlights key sectors that will shape the future of retail. With a focus on regional uniqueness, it lays the foundation for retailers to craft forward-looking strategies, positioning them for success in the evolving retail ecosystem. This unique coffee table book serves as a valuable resource for understanding the region’s retail trajectory and unlocking opportunities for sustainable growth in the years ahead.

Another important session during the day saw the convergence of industry leaders from lifestyle, footwear, supermarket, F&B sectors of retail who explored the opportunities of omnichannel, meant to enhance a well-connected and fluid customer experience. The panel further stressed on omnichannel improvement by leveraging consumer data.

Sadique Ahmed, CEO of Pathfinder and Founder of RetailGPT, said, “The Middle East Retail Forum has been an incredible platform for dialogue and discovery among the top minds in retail. We’re excited to have showcased RetailGPT here in Dubai, demonstrating firsthand the transformative potential of AI in enhancing the retail experience. The engagement and enthusiasm from participants have been truly inspiring, affirming our commitment to innovation in this vibrant market. RetailGPT is proud to contribute to this dynamic community, and we eagerly anticipate further collaborations that drive the industry forward.”

On the sidelines of the forum, fast-moving consumer goods (FMCG) startups participated in the UAE FMCG Startup Innovation Summit 2024. A unique innovation conclave for up-and-coming companies, the summit provided them a platform to pitch their business models and win lucrative mentorship opportunities and work with renowned retail brands. T. In fact, MRF this year also dedicated a special pavilion to the startups to sample their products. This ensured greater visibility for the brands and brought them one step closer to the retail ecosystem decision makers.

Screened through a closed-door pitching session, the jury for the UAE FMCG Startup Innovation Summit 2024 finally revealed three awardees, who were honoured during the evening’s celebrations. The startups to watch out for are SHAKE YOUR PLANTS, NARH, and THE NATURE’S OWN FACTORY.

The forum hosted its second fireside chat featuring leading retailer Spinneys which has recently announced itself as publicly listed company on the Dubai Financial Market. Sunil Kumar, Chief Executive Officer of Spinneys, reflected on the company’s latest announcement, stating that “going public has given a chance to listen outside the ecosystem.”

He also reflected on his personal growth in the company, starting his career as customer service assistant in 1994 to helming the chain as its CEO since 2019. On the growth of business in the UAE, he said, “Companies need to promote culture and character that will help sustain growth. Embracing culture will empower the team to strive towards success. This is a driving factor that has made Spinneys 79 stores strong in addition to its expansion across all GCC countries.”

The future of retail spaces took the spotlight in the second half of the day. Frontline experts juggled between malls as potential spaces for retail success and standalone stores. The transition of standalone stores to mall spaces is evident, especially with entertainment facilities. Malls also provide a diverse mix of shopping options for consumers to spend under one roof, thereby accelerating this transition.

Sherif Eldebawy, Vice President-Leisure & Entertainment- Glitch at Al Ghurair Properties, said, “Novel concepts have proven to drive footfall in malls. For instance, Glitch, an entertainment space, and Flayva, a street-food concept featuring different cuisines, have significantly increased visitors and spending at Al Ghurair Centre. Currently, the mall records 98 percent occupancy featuring a broad range of retail sectors that cater to customers of all ages.”

The retail forecast extended beyond the UAE, with an exclusive panel focusing on the KSA market. It covered prominent aspects, like e-commerce, consumer behaviours, and evolution of the sector to achieve Vision 2030 goals.

Mohammad Alawi, Chairman of the Board of Azad Properties, said, “Local brands are largely appreciated by consumers. In fact, we see homegrown companies disrupting the market, signifying that they will lead the future of Saudi’s retail landscape.”

One of the key takeaways of the discussion included the contribution of women in the country’s retail industry.

May Kanounji, Chief Executive Officer of Blooming Wear, a Saudi fashion brand for women, said, “At Blooming, the workforce is primarily female-driven, constituting 85 percent and another 50 percent taking over leadership roles.”

The day’s final panel navigated new-age consumer brands and their adaptability to reach out to all kinds of consumers. Strategies like personalisation and community engagement were emphasised.

Akshay Rao, Head of e-commerce at Landmark Group (Babyshop), said, “To tap the younger consumer market, traditional businesses essentially need to be available on digital platforms. Consumers are constantly online, and businesses need to leverage this opportunity to grow their consumer base.”

A major highlight of the MRF this year was the SOLOx, a mini session that unlocked STORIES. OPINIONS. LEARNINGS. OUTCOMES of retail leaders. . It showcased the journey of challenges and triumphs of each speaker, empowering young professionals and entrepreneurs.

Mark Tesseyman, Chief Executive Officer of Liwa Trading Enterprises, recalled his career graph from a failed sportsman to a C-level professional. On lessons learnt so far, he said, “A brand is defined by its product, people, and place. They are central for success; hence, all must be worked on.”

As the Middle East Forum 2024 concluded on a high note, the future of retail in the GCC was inferred: it would become a pivotal impetus for regional economic boon, underpinned by innovation and technology. The pandemic posed to a be a challenging learning curve for most businesses. As a result, they have learnt to be flexible and experimental post-pandemic, ushering in a new era of retail that prioritises personalised consumer experiences.

The annual IMAGES RetailME awards also known as the THE OSCARS OF RETAIL, gathered the retail fraternity to celebrate and honour excellence in retail innovation and pioneering initiatives. This glittering occasion is where brands attain their milestone moments, basking in the spotlight of the entire retail fraternity.

Ends 

About IMAGES Group

We proudly consider ourselves as storytellers and creative catalysts transforming brands, services and businesses for over three decades. As the largest retail intelligence organization in South Asia and the Middle East, we have been harnessing the extraordinary potency of storytelling to connect the retail industry to the solution providers and foster collaborative growth.

Our diverse array of platforms, including B2B magazines, newsletters, research reports, conferences, exhibitions, impactful outreach programs and prestigious awards, function as catalysts for the profitable growth of modern retail through knowledge platform leadership.

About Middle East Retail Forum

The Middle East Retail Forum (MRF) is your crystal ball into the future of retail in the MENA region. As IMAGES Group’s flagship retail storytelling platform, MRF is where the retail revolutionaries converge under one roof to forecast trends, unveil innovations, and set the agenda for tomorrow. Started in 2012, MRF has become a #RetailRitual for the retail fraternity in the region bringing them together under one roof every year to discuss, collaborate, and nurture an ecosystem of growth for the entire fraternity.