The Largest Re­tail Chains In The Mid­dle East

Forbes Middle East - - CONTENTS -

The re­tail in­dus­try in the Mid­dle East has for years ben­e­fited from strong eco­nomic growth and ris­ing dis­pos­able in­come among con­sumers. But growth has ma­tured within the in­dus­try, with many global re­tail­ers now show­ing flat to even neg­a­tive growth. Ac­cord­ing to con­sul­tancy KPMG, “2019 is poised to be a trans­for­ma­tional year for re­tail.” Tech­nol­ogy con­tin­ues to change the rules of en­gage­ment, and highly-con­nected con­sumers are more de­mand­ing than ever. Many of the re­gion’s re­tail gi­ants are try­ing to adapt to this new dy­namic. Brick and mor­tar re­tail­ers are now im­prov­ing their dig­i­tal foot­print by ei­ther in­vest­ing in an e-com­merce plat­form or by pick­ing up stakes in tech-based star­tups in the re­tail in­dus­try.

The re­tail in­dus­try in the Mid­dle East is ex­tremely di­verse but also ex­tremely con­cen­trated. It of­fers a huge choice to cus­tomers in terms of brands, with most lux­ury re­tail­ers hav­ing a pres­ence in the re­gion. At the same time, the in­dus­try is con­cen­trated be­cause there are just a hand­ful of com­pa­nies that are the prin­ci­pals of these brands. Most coun­tries in the re­gion have a small pool of com­pa­nies, mostly fam­ily-owned, that hold the fran­chises to the ma­jor­ity of all in­ter­na­tional brands.

While in­ter­na­tional brands rule the roost in lux­ury seg­ments, as we come lower down the value chain, lo­cal re­tail­ers have greater mar­ket shares.

In this list, we look to high­light a few of the big­gest re­tail chains in the re­gion. Some have been around for many years—the Al­shaya Group was first es­tab­lished in 1890 and em­ploys over 60,000 peo­ple. Only con­glom­er­ates for which re­tail is a sig­nif­i­cant part of their busi­ness were in­cluded.

To de­velop the rank­ing, we kept in mind the fol­low­ing:

• Num­ber of em­ploy­ees.

• Ge­o­graph­i­cal reach, in­clud­ing the ex­tent of the com­pany’s pres­ence in each coun­try.

• The num­ber of brands that it of­fers and the num­ber of seg­ments that it is present in.

• Space oc­cu­pied, in terms of the num­ber of stores as well as square footage.

• Age of the com­pany

• Ed­i­to­rial points

* This list looks to high­light the re­gion’s big­gest re­tail­ers and does not com­ment on the fi­nan­cial health of the busi­nesses.

Newspapers in English

Newspapers from UAE

© PressReader. All rights reserved.