Vol 1 Issue 25
عربيTUESDAY NOVEMBER 19
The net profit of the Saudi Savola Group increased by 23% during the third quarter of this year, on an annual basis, to reach 181 million riyals.
Savola Group, which owns a number of brands in the retail and food sectors, including Panda and Herfy, said that the reason for the increase in its net profit is due to the increase in retail sector revenues from 14.5 million riyals in the third quarter of 2023 to 57 million riyals in the same period of the current year, as a result of the positive impact of the “Customer Experience Reform” (CXR) program, in addition to the improvement in operations in general. Savola’s profits increased despite a decline in its revenues, which amounted to 6.1 billion riyals during the third quarter of this year, compared to 6.4 billion riyals for the same quarter of the previous year.
LUXURY SCENARIO
The rapid ongoing structural reform and liberalization of the Saudi Arabian Economy is creating a tailwind for consumer spending. This is particularly evident in the expanding capital Riyadh where a strong retail development pipeline is attracting some of the world’s leading brands. With significant numbers of business travellers and tourists coming into the country coupled with new intra-city destinations and mall infrastructure coming through the development pipeline, Riyadh is emerging as a new destination for luxury retail.
In the latest Ipsos consumer sentiment indices, Saudi Arabia consistently ranks amongst the highest countries it the world when measuring consumer confidence. In May 2024, 73% of Saudis believed that the domestic economy was “strong”, the highest in the world. Second place India stood at 43%. Saudi Arabia’s Personal Financial Condition index ranked it at 77.2, again the world’s highest with the global average score being just 40.7. Saudi Arabia’s consumer confidence is significantly higher than almost all other emerging markets as well as the global average and serves as the best indicator to predict future spending trends in the economy with buoyant consumer confidence being a driver of growth through consumption.”
Dr Martyn Davies
Retail Sector Leader and Head of City Excellence Division Royal Commission for Riyadh City, Kingdom of Saudi Arabia
BUSINESS TIES
The Ras Al Khaimah headquartered Julphar has sold its pharmacy business – Zahrat Al Rawdah Pharmacies – in Saudi Arabia to BinDawood Holding for SR444.1 million. Zahrat Al Rawdah is a 100% indirectly-owned subsidiary of Julphar and has 173 retail outlets in the Kingdom.
This move positions BinDawood Holding as the pioneering retailer in Saudi Arabia to integrate pharmacy services within its stores, facilitating smooth access to healthcare products alongside everyday essentials.”
Ahmad BinDawood
CEO, BinDawood Holding
Saudi Retail Forum (SRF) 2024 Launch Video | December 10, 2024 | JW Marriott Hotel, Riyadh
Whites Pharmacy opens its new store at the Arab Mall, Jeddah. Founded in 2008, today it has over 100 stores in over 20 cities in Saudi Arabia with over 1,000 employees.
JD Sports opened its 2 nd store in the Kingdom and lands in Jeddah, Red Sea Mall. With a 6,000 sq ft store featuring the latest from brands like Nike, adidas, New Balance, The North Face, and Under Armour this retailer now has opened 6 stores in 6 months, keeping on with its robust expansion plans across MENA.
Costa Coffee has recently opened a store at Aliah Plaza, Riyadh, KSA. This takes the brand’s presence to over 102 locations in the Kingdom.
/ˈkʌs.tə.mər ˈdʒɜː.ni/ An overused term, but very essential to understand for every brand to help them gauge their customer needs and tailor them accordingly. In simple terms, Customer journey is the individual path that visitors take during their online shopping experience, from first learning about a product or brand to conversion.
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