After sales in some countries were hit by the COVID-19 restrictions introduced during the pandemic, the end of the review period saw some markets in Middle East and Africa negatively impacted by economic difficulties like high inflation or weakening local currencies. However, positive growth is expected in the region throughout the forecast period, with e-commerce continuing to set the pace in many markets.
This report comes in PPT.
While economic conditions have been tough in South Africa, emerging payment models such as Buy Now Pay Later have been assisting retailers in pushing sales of discretionary goods. In addition, the South African government’s decision to further extend the COVID-19 grant until 2025 has also helped support demand among lower-income consumers.
Saudi Arabia has made significant investments in infrastructure development, including the construction of shopping malls, retail centres and transportation networks. These developments have created more opportunities for retailers and improved accessibility for consumers. The digital economy also forms part of the government’s Vision 2030 strategy, with it aiming to achieve 70% cashless payments by 2025.
While retail as a whole was declining in Egypt in 2023 due to the difficult economic conditions, local consumers continue to take to online shopping, helped by leading e-marketplaces like Souq.com and Jumia expanding and improving their delivery infrastructure. E-commerce is also being boosted by increased smartphone penetration and the wider availability of affordable, high-speed internet access, while the government is working to improve payment methods.
Improving economic conditions, boosting purchasing power and the appetite among consumers for spending in retail environments, as well as expanding populations should help drive growth in the retail industry in the coming years, with steady annual sales increases of around 3% expected in real value terms over the forecast period.
Retail is the sale of new and used goods to consumers from a business for personal or household consumption from retail outlets, kiosks, market stalls, vending, direct selling and e-commerce. Retail is the aggregation of Retail Offline and Retail E-Commerce. Excludes specialist retailers of motor vehicles, motorcycles, vehicle parts. Also excludes fuel sales, foodservice sales, rental transactions, and wholesale sales (e.g. Cash and Carry). Sales value excluding or including VAT/Sales Tax. Retail also excludes the informal retail sector. Informal retailing is retail trade which is not declared to the tax authorities. Informal retailing encompasses (a) sales generated by unregistered and unlicensed retailers, i.e. retailers operating illegally, and (b) any proportion of sales generated by a registered and licensed retailer that is not declared to the tax authorities. Unregistered and unlicensed retailers operate predominantly (although not exclusively) as street hawkers or operate open market stalls, as these channels are harder for the authorities to monitor than permanent outlets. Activities in the illegal market, which is usually understood to refer to trade in illegal, counterfeit or stolen merchandise, are included within our definition of informal retailing. Activities in the “grey market”, which is usually understood to refer to trade in legal merchandise that is sold through unauthorized channels – for example cigarettes bought legally in another country, legally imported, but sold at lower prices than in authorized channels – will be included as informal retailing if no tax is paid on sale by the retailer. However if the retailer pays tax – for example on cigarettes bought legally in another country but sold at a lower price than standard – the sale is included within formal retail.
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