iConnectHub
Access
Login/Register
Supplier Login
FOODS from many parts of the world are found in the Kingdom, and supermarkets have increased from about 80 in 1984 to more than 450 in 2009 and continue to grow. Factors that have contributed to the growth of supermarkets include more exposure to the West via satellite television and travel, changing lifestyles, and a craving by Saudi consumers for variety. There are currently more than 250 Class A supermarkets, i.e., more than 1,000sqm of store space with five or more checkout counters complete self-service, modern IT systems, and carrying comprehensive grocery and other products such as produce, butchery, bakery, frozen, chilled, and non-food ranges. Class B supermarkets, which have up to 500sqm of store space with two or more checkout counters and use grocery carts, are estimated at more than 200. These stores are found in all major urban areas and medium-size cities of the Kingdom. Huge hypermarkets (up to 100,000 square feet with up to 60 checkout counters) first entered in Kingdom in 2004. They provide more than 55,000 items including foodstuffs, clothing, tools, toys, and electronics. To date, there are more than 50 hypermarkets dispersed in the three major cites of Riyadh, Jeddah and Dammam. Bakalahs or neighbourhood grocery stores have less than 50sqm store space square meters. Despite the growing number of modern supermarkets in Saudi Arabia, the food-retailing role of bakalahs continues to be important. Profile of major local supermarkets Savola Group, KSA's leading food company, operates 100 Panda hyper and supermarkets. This number is set to increase to 130 by the end of 2010 (100 supermarkets and 30 hypermarkets). Savola further expanded its share of the SAR 96-billion ($25.6-billion) Saudi retail market through the acquisition of all Géant Hypermarket outlets owned by Fawaz Alhokair Group, which had a joint venture between Géant France. Al Othaim Markets Company has 42 supermarkets, 21 convenience stores and seven wholesale outlets located in central, eastern, northern and southern parts of the Saudi Arabia. Farm Supermarkets, established in 1978 in Dammam by the Saudi Marketing Company (SAMCO), has 26 major supermarkets and nine convenience stores mainly in the Eastern part of country. Tamimi Markets, considered the pioneer of the upscale supermarket concept, currently has 11 stores in the Eastern and Central Provinces. It carries the largest range of American foodstuffs compared to other supermarkets in Saudi Arabia. Carrefour Saudi Arabia, a joint venture between the Kingdom's Al-Olayan Group and the Majid Al-Futtaim Group of the United Arab Emirates, has 11 hypermarkets in three main cites. The firm has plans to increase the number of its hypermarkets to 15 by 2010 and to 20 by 2016. Bi n Dawood has 17 Class B supermarkets covering the cities of Jeddah, Makkah and Madinah. The Bin Dawood Group also owns Danube Hyper and Supermarkets, which has five hypermarkets and five supermarkets mostly in Jeddah. Al-Raya has 17 stores in seven regions (Jeddah, Najran, Taif, Khamis Mushayt, Baha, Sabya and Jizan). Al Sadhan Supermarkets has four hypermarkets and four supermarkets in Riyadh. The firm has plans to increase its retail outlets to18 in the next eight years. Balsharaf Supermarkets of Riyadh has seven supermarkets. Competition amongst major retailers The entry of the two French hypermarket chains Gé ant and Carrefour along with the opening of the local chain Hyper Panda launched a new era of retailing in the Kingdom characterised by a state-of-the-art shopping experience and aggressive competition. These retailers strive to reduce costs to enhance their competitiveness. Major retailers also try to increAir Jordan