A report today in Reuters highlights the impact that Saudi Arabia’s Vision 2030 economic and social reforms are having on Saudi Arabia’s malls and bazaars – which are changing as retailers embrace a shift in shopping habits.
“Designer clothes stores and high-end chocolate and flower shops are shutting and fast-fashion, fast-food, budget stores and cinemas are moving in,” Reuters reports.
“Cuts to electricity and petrol subsidies and a rise in VAT have eaten into household budgets and many are making savings by switching from luxury to budget goods. At the same time, reforms to bring women into the work force and encourage entertainment has lifted other types of spending. The departure of thousands of foreign workers has hurt local bazaars and led to other changes.”
Citing an executive at a major Saudi retailer, the report notes that retailers are having to review their portfolios, “be it products or stores, to reflect changing consumer patterns.”