Riyadh to host Retail Leaders Forum 2026 and the future of the sector
In a move reflecting the growing prominence of Saudi Arabia on the global economic map, Panos Lenardos, Chairman of the Global Retail Leaders Circle Forum, announced that Riyadh has been selected to host the 2026 forum, scheduled for February 3 and 4. This announcement is a culmination of the Kingdom's tireless efforts to enhance its business environment and attract high-quality investments, underscoring Riyadh's transformation into a strategic hub connecting emerging markets with established global economies.
Promising growth indicators in the retail sector
In exclusive statements to “Al-Youm”, Leonardos revealed very positive expectations for the future of the retail sector in the region, as revenues are heading towards recording a qualitative leap approaching the $15 billion mark by 2025. This growth is driven by the adoption of modern technologies and the expansion of digital infrastructure, although the share of e-commerce still represents only about 7% of total sales recorded in 2023, indicating that there is a huge room for future growth and investment in digital channels.
Vision 2030: The main driver of transformation
This development cannot be viewed in isolation from the broader context of the Kingdom's Vision 2030. The Vision has been the primary driver of economic restructuring, creating an open and competitive environment and opening up vast investment opportunities in non-oil sectors. The retail sector has directly benefited from the significant growth in the tourism and entertainment sectors, as well as from mega-projects that have attracted new and diverse consumer segments, thereby boosting purchasing power and raising consumer expectations.
Digital transformation and the concept of “holistic fragmentation”
In discussing digital transformation, the international official explained that the Kingdom is progressing at a very advanced pace, describing e-commerce as "small in scale, but big in impact." He emphasized that digitalization does not necessarily mean the demise of traditional stores, but rather requires them to redefine their role. Instead of being mere points of sale, stores are transforming into interactive spaces that enhance customer engagement with the brand, while routine and daily purchases are gradually shifting to digital channels that offer speed and efficiency.
Regional expansion opportunities for Saudi brands
Leonardos believes that Saudi brands today have an unprecedented historical opportunity for regional expansion, particularly in the GCC markets. These brands possess competitive advantages stemming from their deep understanding of local culture and Gulf consumer behavior, as well as the lower costs of digital expansion compared to the past. However, he emphasized the necessity for these brands to have a clear identity and strict operational discipline to ensure success in neighboring markets.
Market challenges and the future of local stores
Despite the optimistic outlook, the forum's chairman cautioned against the dual pressures facing the sector: rising operating, labor, and technological costs, coupled with a shift in consumer behavior towards greater price awareness and sensitivity. He noted that local shops and the grocery sector remain pivotal to the Saudi market, drawing strength from geographical proximity and decades-long relationships of trust. He concluded by emphasizing that the future lies in the "holistic retail" model and the experience economy, where data and technology have become the lifeblood of daily operations and the measure of survival for the fittest.
