USD 16.37 billion; that is the estimated growth size of the Saudi Arabian Food Retail Market at a CAGR of 5.67 percent between 2024 and 2028. There is another report that suggests that the Saudi Arabia Retail market could grow at a CAGR of 4.40 percent during 2024-2032. Saudi Arabia has a strong growing consumer demographic, and the grocery retail sector is estimated to be around 55 percent of the total retail market of the sector. In 2025, while the online grocery shopping sector is forecast to reach 10 percent of the total grocery sales, the overall size of the retail market is projected to reach USD 31.4 billion. This growth is majorly attributed to the growing popularity of modern retail formats such as supermarkets and hypermarkets. World Business Outlook set out to seek the trendsetter in the retail chain sector of Saudi Arabia.
Advancements in Digital payments and logistics have compensated well to the rising demand of the young and growing population of Saudi Arabia. The increasing disposable income and the government support for local food production over imports have further encouraged the expansion of several supermarket chains across the Kingdom. Saudi Arabia is also leading in investments towards digital transformation, including AI-powered retail solutions.
Retailing Alternate Sources of Income
The biggest aim of Saudi Arabia’s Vision 2030 is to reduce the country’s reliance on oil and diversify the economy into more sectors like Tourism, Finance, Agriculture, Manufacturing, Retail and more. The Saudi retail sector has reported a 23 percent contribution to this non-oil GDP segment. This prompted World Business Outlook to search for the most disruptive retail chain in the Kingdom. Among these retail chains, the food and grocery retail chain is the fastest-growing segment with the widest number of outlets, revenue growth and investments. Hence, the quest began for the Fastest Growing Grocery Retail Chain in Saudi Arabia in 2024.
World Business Outlook started with the market presence and reach of all the nominees for the above category. The jury members analysed the strong presence of each of the nominees across Saudi Arabia and enquired about the quality, variety and pricing of products available at these stores. We also took into account the promotional strategy towards its end customers and the measures taken to improve the store’s digital presence and customer convenience. World Business Outlook was especially impressed by the Customer Loyalty programs incorporated by one such retail chain in Saudi Arabia. In this world of fast-evolving digital diaspora, the jury is impressed by this winning brand’s innovative approach and agile nature.
With headquarters in Riyadh and over 400 operational stores across the MENA region, Abdullah Al-Othaim Markets Company is our winner of the title – Fastest Growing Grocery Retail Chain in Saudi Arabia 2024.
Standing by the Kingdom, Always
Established in 1956, in Riyadh, by Sheikh Saleh Ali Al-Othaim, as Al-Othaim Trading Company, Abdullah Al-Othaim Markets Company took its current shape only in 1980. The company has been expanding and flourishing across the GCC region to dominate the wholesale and retail sales sector in the region. In 1990, with the establishment of the ‘Consumer Wholesale’ system, Othaim Markets became the leader of the retail sector in Saudi Arabia. Several large warehouses with advanced dry and refrigerated storage systems have been set up to cater to several centres of Othaim Markets across the Middle East region.
Valued at over USD 900 million, Abdullah Al Othaim Markets Company is a subsidiary company of Othaim Holding Company. It is one of the largest Saudi joint-stock companies and a key player in grocery retailing. It operates the Kingdom’s largest grocery store chain, servicing over 100 cities and governorates with a total of 384 branches with over 18 thousand dedicated and well-trained personnel. While the KSA market is growing at a 2% MAT’24 level, the company is growing more than twice as fast as the overall market and quadruples the market growth rate for organised stores in the Kingdom. The main activities of the company include Cash & Carry, Wholesales, Hyper and Supermarkets, and Convenience Stores. It is considered one of the most important retail companies that play a major role in achieving balance in food security by diversifying its sources of high-quality national and international products at thoughtful and competitive prices that take into account and suit the income and capabilities of all segments of society.
The company has taken significant initiatives and investments towards the development of the e-commerce sector and digital transformation in Saudi Arabia. It has signed up strategic collaborations with several leading companies such as Saudi Telecom Company, Al Rajhi Bank, Tamara Company and others. The company is currently working on expanding its sales outlets to 600 centres before the end of 2026, within the Kingdom. The company deserves a special mention for its environment-friendly practices by reducing packaging waste, incorporating paperless receipts through its exclusive App and introducing several customer-friendly promotions, which include Digital gift cards. Othaim Markets is also working on improving its performance and efficiency in logistics and supply chain to achieve its aim of carbon-zero sustainability and zero-grievance customer satisfaction.
