Riyadh, Saudi Arabia – June 10, 2025: By the time dusk settles over Riyadh’s expanding skyline, the rhythm of commerce is already shifting. For years, Saudi Arabia’s shoppers were known for their high discretionary spending and preference for premium brands. But a new report suggests the tide is turning—and fast.
According to Oliver Wyman, the consulting firm behind the study, a noticeable recalibration is underway in Saudi households. Consumers, they say, are becoming more selective, more price-conscious, and less predictable.
Saudi shoppers “are continuing to spend, but they are being more thoughtful in how they do so,” the report notes. The transformation has been gradual but unmistakable: a tightening grip on personal budgets, a growing demand for value, and an increasing willingness to switch loyalties if a better deal comes along.
Behind this shift is a potent mix of economic realities and evolving social norms. Rising costs, driven in part by VAT hikes and the global inflation ripple, have pressed consumers to rethink priorities. But beyond price sensitivity, there's something deeper at play: an emerging consumer who is digitally savvy, brand-agnostic, and highly attuned to convenience.
While supermarkets and discounters are seeing upticks in foot traffic, mid-tier retailers are caught in a squeeze. Premium segments aren’t immune either, with customers now more likely to hold off on purchases, wait for sales, or seek out online alternatives.
The report identifies four consumer archetypes: the price-sensitive “Selective Spenders,” the experience-driven “Engaged Explorers,” the brand-loyal “Devoted Enthusiasts,” and the status-aware “Status Seekers.” Each represents a distinct attitude toward spending—and together they paint a portrait of a marketplace far more fragmented than before.
For retailers, the message is clear: adapt or be left behind.
"Retailers that are able to understand and cater to these evolving behaviors will be better positioned to thrive,” the report states, underscoring the need for businesses to rethink everything from pricing strategy to digital engagement. Those leaning heavily on old assumptions about customer loyalty or brand prestige may find themselves outpaced by leaner, nimbler competitors.
Interestingly, Saudi Arabia’s rapid digitalization has also played a role in reshaping the retail landscape. Online platforms, once seen as auxiliary, are now central to the consumer journey. Whether it’s comparing prices, browsing options, or completing a purchase, digital touchpoints have become non-negotiable.
Still, the transformation isn’t just about economics or technology. Social shifts, such as a younger, more empowered population and increasing female participation in the workforce, are redefining what it means to shop in the Kingdom.
"Saudi consumers are increasingly exploring and engaging with retail experiences in new ways," the report observes.
For global brands and local players alike, the message is sobering but energizing. The Saudi consumer is still spending, but on their own terms. Meeting them there, whether online or in-store, with discounts or immersive experiences, will require more than a polished storefront. It demands listening, learning, and a willingness to evolve.
As the Kingdom charts its broader transformation under Vision 2030, the habits of its consumers may offer one of the clearest windows into where the country is headed.
