Carrefour expands in Saudi Arabia as retail market grows

SAUDI ARABIA – Carrefour, a French multinational retailer, has announced significant expansion plans, adding more hypermarkets and enhancing its online platform in Saudi Arabia.

These expansion plans by the French retailer, operated in the region by Majid Al Futtaim, aligns with Saudi Arabia’s Vision 2030, which aims to strengthen the economy through diversified investments, including modern retail.

Saudi Arabia is experiencing fast-paced urban development and an increase in consumer demand for quality products. Carrefour is taking advantage of this momentum by opening multiple hypermarkets in key cities such as Riyadh, Jeddah, and Dammam.

These large-format stores are designed to offer a wide selection of goods under one roof, making them attractive to consumers looking for convenience.

At the same time, Carrefour is enhancing its online shopping platform to cater to the growing preference for digital transactions.

With more people choosing to shop from home, the company is strengthening its digital infrastructure to ensure a seamless shopping experience.

“E-commerce is no longer just an option; it is an expectation. We are investing heavily to ensure our customers enjoy a smooth and efficient online shopping experience,” a company spokesperson said.

Saudi Arabia has become a key market for global retailers due to its young population, increasing urbanization, and government support for economic diversification.

More than 60% of Saudi Arabia’s population is under 35, making them a key consumer group that favors digital shopping and international brands.

The Saudi government has been actively encouraging foreign investment in retail as part of its Vision 2030 plan. By relaxing regulations and providing incentives, the country has made it easier for international brands like Carrefour to expand.

Additionally, Saudi consumers are showing a preference for high-quality products, including organic and international food options.

Carrefour is capitalizing on this by expanding its partnerships with local suppliers, ensuring a balance between imported goods and locally produced items.

Carrefour’s competitive advantage

To compete with other major retailers such as Lulu Hypermarket and Walmart-backed Noon Grocery, Carrefour is implementing key strategies to differentiate itself. One of its biggest focuses is on advanced retail technology.

The company is integrating AI-powered checkout systems, automated inventory tracking, and personalized digital promotions to enhance the shopping experience.

Another strategy is strengthening local supply chains. Carrefour is working closely with Saudi farmers and manufacturers to increase the availability of fresh and affordable local products.

This not only reduces reliance on imports but also aligns with the government’s efforts to boost food security.

Sustainability is also playing a major role in Carrefour’s approach. The company is reducing plastic packaging, implementing energy-efficient store designs, and launching initiatives to minimize food waste.

“Retailers have a responsibility to ensure that growth does not come at the expense of the environment. We are committed to sustainable practices that benefit both our customers and the planet,” the spokesperson added.

Despite its strong potential, the Saudi retail market presents challenges for Carrefour. Competition remains fierce, with established local and regional chains aggressively expanding their offerings. Additionally, evolving business regulations require Carrefour to remain flexible and adaptive.

Cultural preferences also play a key role. Understanding and catering to Saudi shopping habits, including the demand for halal-certified products and family-oriented shopping experiences, is essential for long-term success.

Looking ahead, Saudi Arabia’s grocery sector is expected to see further growth in online shopping, a rise in large-format retail stores, and an increased focus on sustainability.

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