Saudi Arabia's retail sector is experiencing an impressive surge, cementing its position as a key player in the evolving global retail landscape. As the Kingdom continues to diversify its economy under Vision 2030, consumer spending trends reflect growing confidence and adaptability to shifting market dynamics. According to the 2025 Global Consumer Outlook report by AlixPartners, Saudi consumers remain resilient and optimistic, with a six-percentage-point net positive spending trend. This highlights the Kingdom's robust retail environment and its capacity to thrive despite global economic uncertainties.

The Kingdom’s retail sector is undergoing a transformation, with several key trends shaping the market. These trends indicate a strategic shift towards value-driven and experience-based consumption, redefining the future of retail in Saudi Arabia.

1. Essentials Lead the Way

Consumers in Saudi Arabia continue to prioritize essential goods, focusing on affordability and value.

  • Groceries and Clothing Drive Spending: Grocery spending has increased to 56%, while clothing purchases account for 43% of consumer spending.
  • Preference for Discount Retailers and Private-Label Products: With a focus on affordability, more consumers are turning to discount retailers and private-label brands to manage rising costs.
  • Smart Shopping Behaviors: Saudi shoppers are embracing smarter spending habits, opting for bulk purchases, discounts, and store loyalty programs.

2. The Experience Economy is on the Rise

Saudi consumers are not just spending on essentials; they are also investing in experiences that enrich their lifestyles.

  • Dining Out Trends: Unlike global trends where spending on dining out is declining, one-third of Saudi consumers plan to increase their spending on eating out. This signifies the growth of the hospitality and food service industry.
  • Entertainment Boom: A 33% increase in spending on out-of-home entertainment reflects Saudi Arabia’s thriving social and leisure scene. With the government investing in entertainment hubs and events, this trend is expected to grow.
  • Domestic Travel & Staycations: While international travel remains a priority for many, an increasing number of consumers are choosing budget-friendly local experiences such as staycations, domestic trips, and cultural excursions.

3. Digital Transformation in Retail

The retail sector in Saudi Arabia is embracing technology-driven innovation, with AI and digital solutions playing a significant role in enhancing the shopping experience.

  • AI-Powered Shopping: More consumers are leveraging AI-driven recommendations to personalize their purchases.
  • Mobile Payments & Seamless Transactions: Mobile wallets and digital payment solutions are gaining traction, making transactions smoother and more convenient.
  • Omnichannel Retailing: The integration of online and offline retail is reshaping how consumers shop, allowing them to switch seamlessly between physical stores and e-commerce platforms.

What This Means for Retailers

With Saudi Arabia’s retail sector witnessing strong consumer confidence and evolving spending patterns, retailers must adapt and innovate to remain competitive. Here are some key takeaways:

  • Prioritize Affordability: With value-conscious consumers on the rise, retailers should offer budget-friendly options and discounted product lines.
  • Enhance the Customer Experience: Investing in engaging retail spaces, personalized services, and loyalty programs can help drive customer retention.
  • Embrace Digital Innovation: From AI-powered shopping assistants to seamless mobile payments, digital transformation will be critical for retailers looking to attract tech-savvy consumers.
  • Capitalize on Experience-Based Retail: Malls, restaurants, and entertainment hubs should focus on providing immersive experiences, as consumer spending on leisure activities continues to grow.

Saudi Retail Show: The Ultimate Platform for Retail Innovation

As Saudi Arabia continues to expand its retail sector, industry leaders and stakeholders need a dedicated platform to analyze trends, discover growth opportunities, and discuss the future of retail. The Saudi Retail Show will serve as a premier forum for these discussions, bringing together retail giants, tech innovators, and consumer insights experts.

At the Saudi Retail Show, attendees will:

  • Gain insights into the latest consumer trends shaping the Saudi market.
  • Explore the impact of digital transformation on retail growth.
  • Discover innovative retail solutions that can help businesses thrive in the Kingdom’s evolving retail landscape.

Final Thoughts

Saudi Arabia’s retail sector is not just expanding; it is evolving with changing consumer preferences, technological advancements, and experiential spending. As the country moves toward a digitally integrated and value-driven retail market, businesses that adapt to these shifts will be the ones leading the future of retail.

Stay tuned for more updates on Saudi Arabia’s retail industry and don’t miss the Retail Show Saudi, where the future of retail will be unveiled!