Discounters are projected to remain the fastest-growing retail channel during the forecast period, benefiting from improved market penetration in Saudi Arabia. Outlet expansion will bring new discounter formats to more cities and consumers across the Kingdom, with Al Dukan leveraging the expertise and financial support of its new owner Kazyon Ltd.
The rapid expansion of discounters in recent years is likely to attract new entrants, given the relatively low competitiveness within the segment. As a result, smaller operators like Economic Hall and Alshamel, which have also focused on value propositions, may consider reviewing their business models to include private label in a bid to remain competitive.
Over the forecast period it is likely that discounters will look to expand outside of large urban centres as they look to reach a broader audience. There is seen to be potential for expansion into smaller cities and towns, where other modern grocery retail formats are not yet well established.
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Understand the latest market trends and future growth opportunities for the Discounters industry in Saudi Arabia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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Discounters are chained retail outlets typically with a selling space of between 400 and 2,500 square metres. Stores have a primary focus on selling a limited range of foods, beverages, tobacco and non-groceries at budget prices, regularly via private label. Discounters can be classified as hard discounters and soft discounters. Hard discounters, first introduced by Aldi in Germany, are also known as limited-line discounters. Stores are typically 400-900 square metres and stock fewer than 1,000 product lines, largely in packaged groceries. Product range available is predominantly made up of private-label brands. Soft discounters are usually slightly larger than hard discounters, and are also known as extended-range discounters. Stores typically stock 1,000-4,000 product lines. As well as private-label and budget brands, stores commonly carry leading brands at discounted prices. Example brands include Aldi, Lidl, and Dia.
See all of our definitionsThis report originates from Passport, our Discounters research and analysis database.
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