Forecasts & Outlook

Retail Forecasts 2026–2027

Forward-looking projections, scenario modelling, and strategic outlooks to help retail leaders plan with confidence.

Annual Outlook

2026 Retail Sector Outlook

Saudi retail is entering a period of strong growth, underpinned by Vision 2030 initiatives, rising consumer spending, and rapid digital adoption. Inflationary pressures are easing, and consumer confidence across the Kingdom remains robust. Retailers who invest in personalisation, supply chain resilience, and omnichannel integration are best positioned to capture share in the GCC's most dynamic market.

ConfidenceHigh
Last updated: July 2026
Scenario Modelling

Three Paths for 2026

Base Case60% probability
+2.4%
GDP
+4.8%
Retail
32%
E-com

Steady consumer spending recovery, moderate inflation, stable employment. Omnichannel retailers outperform pure-play physical.

Bull Case25% probability
+3.6%
GDP
+7.2%
Retail
35%
E-com

Strong wage growth, falling interest rates, and a surge in discretionary spending. Premium and experience-led retail leads.

Bear Case15% probability
+0.8%
GDP
+1.1%
Retail
30%
E-com

Renewed inflationary shock, tightening credit, and subdued consumer sentiment. Value retailers and private label gain share.

Category Forecasts

Growth by Category

Apparel & Footwear+5.2%+6.1%Casualisation & resale market expansion
High
Grocery & FMCG+3.1%+3.4%Private label premiumisation and quick commerce
High
Consumer Electronics+4.7%+8.3%AI device upgrade cycle and wearables
Medium
Home & Furniture+2.8%+3.9%Remote work normalisation and home investment
Medium
Health & Beauty+6.4%+7.0%Wellness trend and personalised skincare
High
Sporting Goods+5.9%+6.5%Active lifestyle and athleisure crossover
Medium
Channel Outlook

Where Growth Will Come From

E-commerce
32%
2026 share
36%
2027 share

Social commerce and live shopping accelerating adoption

Physical Stores
54%
2026 share
49%
2027 share

Footfall stabilising but basket sizes improving

Omnichannel
14%
2026 share
15%
2027 share

Click-and-collect and BOPIS driving incremental revenue

Signals to Watch

Key Indicators for Retail Leaders

Consumer Confidence IndexCautious

Fragmented across income brackets; premium and value ends outperforming mid-market.

Supply Chain Lead TimesImproving

Average lead times down 18% YoY; nearshoring investments beginning to pay off.

AI Adoption in Retail OpsAccelerating

Demand forecasting and personalisation AI now deployed by 41% of top-100 retailers.

Discretionary Spend PressureElevated

Mortgage and rent costs constraining mid-income discretionary budgets through H1 2026 in key GCC markets.

Forecast Reports

In-Depth Forecast Reports

Annual Report48 pages

Global Retail Outlook 2026–2027

Comprehensive sector-by-sector forecasts with scenario modelling and strategic recommendations for retail executives.

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Deep Dive24 pages

E-commerce Growth Trajectories

Channel-by-channel breakdown of digital retail growth, including social commerce, marketplaces, and direct-to-consumer.

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Category Report32 pages

Category Winners & Losers 2026

Granular category-level forecasts with consumer sentiment data and competitive landscape analysis.

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