_Shop till you drop: understanding attitudes towards retail
A retail (r)evolution
As part of the National Transformation Plan and the Quality of Life Program, the retail sector has been undergoing a slow but incredible transformation, with the rise of lifestyle retail developments around the country, which place entertainment and food and beverage outlets at their heart. In the wake of the pandemic, online shopping in the Kingdom has soared. Landlords, mall operators, and developers have turned their attention to experiential retail to boost footfall and dwell times.
The success of this strategy is visible in the form of the sharp increase in the number of such developments. Riyadh alone, is now home to over 16 lifestyle-led retail developments that have added more than 300,000 sqm of retail to the capital’s offerings – and this excludes Riyadh Seasons Boulevard, which until only recently was a seasonal attraction and is itself estimated to extend over a further 300,000 sqm of built-up area.
Against this backdrop, we wanted to understand attitudes towards retail and how Saudi nationals are engaging with the current and emergent retail scene.
If I’m not at home…
Despite the swathes of new outdoor-centric shopping venues, traditional shopping malls still play an important role in satisfying shoppers in the Kingdom. However, the results of Survey 2 demonstrate generational differences, which have significant ramifications for the future of the traditional shopping mall.
Survey 2 shows that 50% of respondents prefer traditional malls, followed by the rising ‘lifestyle retail centers’, which is a mixed-use commercial development that combines traditional retail with other lifestyle-linked amenities such as playgrounds, walkways, restaurants, and movie theatres.
The future is experiential retail
Overall, older respondents (aged 35+) favour shopping in traditional retail centres, while younger respondents (aged below 35 years) are more likely to favour lifestyle retail centres (33%) and online shopping (22% compared to 5% for those aged 45+).
This nuanced shift in attitudes through the generations does not necessarily spell the end of bricks and mortar retail as we know it but hints strongly at the need to boost the experience of visiting a store. Concept stores that offer customisation of goods bought in store, stores that adopt a “showroom” concept, or indeed those that integrate F&B elements are glimpses of the future of retail.
Discover the full Saudi Report 2023.