Distribution Networks in Saudi Arabia

Overview by Globlatrade.net:

Types of Outlet

A hypermarket is a superstore with large retail facility, thus combining a supermarket and a department store. Hypermarkets sell a wide range of products under one roof, ranging from grocery to general merchandise
Giant , Hyper Panda
These are large scale retail shops operating at lower costs, selling at lower price; and offers a wide variety of consumer goods of regular use such as food items.
Rammah Supermarket, Carrefour, Tamimi Markets, Giant Stores, Al Raya
Department Store
A department store is a retail establishment which specializes in selling a wide range of products without a single predominant merchandise line. Department stores usually sell products including apparel, furniture, appliances, electronics, and additionally select other lines of products such as paint, hardware, toiletries, cosmetics, photographic equipment, jewelery, toys, and sporting goods.
Bin Dawood, Harvey Nichols, Saks Fifth Avenue
Shopping Malls

Khurais Plaza, Riyadh Sahara Mall, Al-Rashid mall
Specialized Store

Paris Gallery
Corner grocery stores (called 'Bakalahs')
These are small stores or shops often located alongside residential areas, busy roads, or at corners and gas/petrol stations. They sell all types of general consumer goods of regular use like bread, butter, paper and pencils, etc. Some of them may remain open 24/7.

Evolution of the Retail Sector

Growth and Regulation

Saudi Arabia is the largest consumer market in the GGC countries, characterized with high disposable income. The large percentage of the population aged under 25 increases the demand for a wide range of consumer goods and products.

Primarily there are three main commercially active regions in the Kingdom: the Western Region, with the city of Jeddah as the main commercial centre; the Central Region with the capital, Riyadh; and the Eastern Province, where the oil and gas industry is concentrated.

Although there is no requirement for exclusive distributorships, Saudi Ministry of Commerce policy is that all such arrangements be exclusive with respect to either geographic region or product line. Many Saudi companies are active in numerous product lines.
Market Shares

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