Top five supermarket chains Saudi Arabia 2023, by number of outlets
In 2022, the largest supermarket chain in Saudi Arabia Al Othaim had 51 more outlets than the second biggest chain Panda Supermarket, and more branches than the next three biggest supermarket chains in the country combined. Al Othaim operates retail, wholesale, and grocery stores in the country, and is listed on the Saudi exchange as part of the MSCI Saudi Arabia Standard Index.
Supermarkets in Saudi Arabia
The market size of hypermarkets and supermarkets in Saudi Arabia is worth billions of U.S. dollars each year and has overall seen its value increase in the past decade. Although Panda Supermarket which is owned by Savola Group has considerably fewer outlets than Al Othaim, it is the only retailer which made the top five in terms of number of outlets to also to make the list of top five hypermarkets in Saudi Arabia during the same period. With a growing population, influx of foreign workers, and plans to diversify its economy as part of Vision 2030, Saudi Arabia’s retail sector is only expected to grow in the coming years. This is illustrated by the number of organized retailers in the country which has witnessed a sharp increase in both supermarket and hypermarket branches.
Retail in the Region
Although Saudi Arabia has one of the largest economies in the Gulf Cooperation Council, and the largest population, its market size of supermarkets and hypermarkets was marginally below that of the United Arab Emirates. This is a reflection of the retail market in the UAE, which is much older, far more diverse, and developed than other countries in the GCC. In recent years, there has been a marked interest by many of the major retail chains dipping into the e-commerce market. Thus, it has been quite notable to see that e-commerce sales comprise a sizable portion of the supermarket and hypermarket growth channels in the UAE. Physical retail locations are by no means going away; however, the future is expected to see a growing shift towards online retail with countries like Saudi Arabia and the UAE currently leading this transition.
