Saudi Arabia's retail market is projected to grow at an estimated value of $71.2 billion (SR267 billion) by the end of 2014 compared to $66.7 billion (SR250 billion) in 2012, local media said quoting a report released by Oxford Business Group (OBG).
The projected growth of the retail market is attributed to many factors including high rates of consumption, growing population and expansion of incomes, the report said.
The growing number of young population and consumers has triggered firms, businesses and factories to open new branches and outlets which, in turn, led investors open more stores, hypermarkets and open-and-closed malls in different parts of the Kingdom, the report said.
Manufactured items for direct use captured 38.5 percent of the market share whereas electronic devices, textiles and clothes, sanitary items and cosmetics accounted for 27.3 percent, 23.3 percent and 17.9 percent, respectively, the report said.
Meanwhile, per capita spending in retail markets is expected to increase to SR 15,200 ($ 4,000) by 2015, or higher by 50 percent compared to figures of 2010, the report said.
For his part, Head of Commerce Committee at the council of Saudi chambers (CSC) Yusuf Al-Dosari said the volume of retail sector in the Kingdom is bigger than what has been declared.
The sector is enormously dominated by expatriates whose proceeds (returns) are being sent abroad, he said.
The expansion in malls and points of sales (POSs) in this sector is not as beneficial to Saudi economy as required where rates of (male and female) Saudization are extremely low, he said.