Top five trends shaping KSA retail industry

Saudis visit the International Coffee and Chocolate Exhibition held at the Riyadh International Convention and Exhibition Center in the capital Riyadh on December 4, 2017. (AFP)
Updated 23 April 2019

Top five trends shaping KSA retail industry

  • Artificial intelligence can identify consumer preferences with great accuracy

RIYADH: The Kingdom has a vast, young, tech-savvy population that is shifting behavior in Saudi Arabia, according to Ahmed Reda, MENA consumer industry leader for Ernst and Young (EY).
EY worked with more than 200 business leaders, futurists and industry experts through its FutureConsumer.Now program (FCN) to map the buying habits of consumers. “We asked questions such as how will consumers shop, eat, stay healthy, live, use technology, play, work and move in the future?” Reda said.
Here are some of the key trends powering the shift in consumer behavior and the retail industry in the GCC’s largest consumer base.
Data analytics and AI transforming traditional retail models: The new breed of GCC consumer expects a highly personalized experience. This will be even more critical as brand loyalty declines among GCC consumers. As analytics tools become increasingly sophisticated, the value of personalized data will grow. Artificial intelligence can identify consumer preferences with great accuracy.
Brands need to implement omnichannel strategies: In markets such as Saudi Arabia, which has some of the most affluent consumers, omnichannel strategies (any time, any place) are vital for companies to craft a user experience that cuts across online shopping, social media, mobile apps and conventional stores.
Physical stores still have a place: Online shopping has reduced the need for people to visit shops. Physical stores will still be a powerful asset if they are used for more than shopping. Retailers have a portfolio of well-located spaces that can be repurposed.
Rise of e-commerce: Physical stores won’t disappear, but the high penetration of smartphones and digital services has transformed the behavior of GCC consumers.
Value-seeking behavior after VAT: In a market that has been tax-free, the introduction of VAT, even at a relatively low rate of 5 percent, has caused a shift in consumer behavior. The average Saudi consumer is more cost-conscious than ever. Companies that can tap into additional value through economies of scale, or provide greater convenience, will reap the rewards. 


Saudi Arabia confirms 154 new coronavirus cases

Updated 31 March 2020

Saudi Arabia confirms 154 new coronavirus cases

  • Sixteen of the new cases had come from abroad

JEDDAH: Saudi Health Ministry spokesman Dr. Mohammed Al-Abd Al-Aly on Monday confirmed 154 new cases of the coronavirus disease (COVID-19) in the Kingdom. Sixteen of the new cases had come from abroad.

“Since their entry into Saudi Arabia, they have been placed in quarantine,” said Al-Aly at the daily press conference held to announce updates on COVID-19 in the Kingdom.

Saudi Arabia announced free treatment to all COVID-19 patients in both government and private health facilities in the Kingdom.

Health Minister Dr. Tawfiq Al-Rabiah announced the royal order and said it included citizens, residents and those in violation of residency laws.

Al-Aly said: “This gesture is undoubtedly — as the health minister stressed — customary in this country. It is a very important humanitarian step. It adds to all the previous steps that the country has taken to give this community the highest levels of protection and health security.”

Al-Aly provided a breakdown of the latest cases. The majority were recorded in Makkah, with 40 cases, followed by Dammam (34), Riyadh (22) and Madinah (22). Jeddah, Hofuf, Khobar, Qatif and Taif all recorded a low number of cases.

Tabuk, Buraidah, Yanbu, Al-Ras, Khamis Mushait, Dhahran, Samtah and Al-Duwadimi reported one case each.

“This brings the total number of registered cases of coronavirus in the Kingdom to 1,453. Most of the patients are in a stable condition and are showing uplifting results,” Al-Aly said.

He said 22 cases are still receiving intensive care, given their critical health conditions. “No additional deaths were recorded and 49 additional cases were treated, bringing the total number of recovering cases to 115,” he added.

The number of reported COVID-19 cases worldwide has reached 734,000. Around 34,000 people have died; 152,000 have recovered.

Ministry of Interior spokesman Talal Al-Shalhoub said that a number of neighborhoods in Makkah will be isolated as a further precautionary measure.

He said the restriction was introduced to limit the spread of the virus in the Kingdom and to preserve the health and safety of citizens and residents.

Al-Shalhoub said the isolation measures would be implemented in Ajyad, Masafi,Misfalah, Al-Hujun, Al-Nakkasa and Hosh Bakr.

He added that the restrictions will be “preventing entry or exit … and preventing touring throughout the day for 24 hours, from 3 p.m. as of March 30 until further notice.”

Residents of the selected Makkah neighborhoods will be allowed to leave their homes for necessities such as health care and groceries “within the scope of the isolation between 6 a.m. to 3 p.m.”

The ministry said that all activities that have been allowed during curfew hours should be carried out in the strictest limits and in accordance with the procedures and controls determined by the concerned authority.

Saudi intensive care unit patient Moayad Qashqari encouraged all residents to seek medical attention if they experience any symptoms.

Commenting on the royal order, he said: “This is a call for all residents in our country; whether they are residence violators or those whose residency has expired. The hospital doors are opened for them, they will not be rejected if their residency has expired.”

He added: “They will be provided with treatment to go home fully recovered. All residents must take this step to look after their health and the well-being of their families. If it isn’t fatal to one person, it could be fatal to someone else.

“We advise everyone to be cooperative and take responsibility.”
 

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