JEDDAH: Specialist retailers are the biggest gainers in Saudi Arabia retail industry with a market share of 62.6 percent in 2010, followed by general retailers with 28.1 percent, ICD Research's new report "The Future of Retailing in Saudi Arabia to 2015" said Saturday. With a CAGR of 41.32 percent, online retailers were the fastest growing channel group in the industry. In product terms, food & grocery lead the market in Saudi Arabia in 2010 with a market share of 47.2 percent, followed by apparel, accessories & luxury goods. Online retailers will be the fastest growing channel in the forecast period (2010-2015). Specialist retailers and general retailers will be the leading channel groups with a market share of 63.8 percent and 27.0 percent respectively. Apparel, accessories & luxury goods will be the fastest growing category group with a CAGR of 10.10 percent from 2010 through 2015, the report said. Separately, the Middle East & North Africa (MENA) franchise industry is worth an estimated $30 billion, said the International Expo-Consults (IEC), organizer of the upcoming Franchising Middle East (FME) exhibition that will take place on March 14-16, 2011 at the Sheikh Saeed Hall 1 at Dubai World Trade Centre. With approximately 70 percent of retail businesses in the Middle East operating as franchises, the franchising sector has boomed across the Middle East in the past 30 years. According to IEC, the Gulf countries lead the way, with American and European brands proving most popular. The phenomenal growth of the region's franchising sector is mirrored by the rapid expansion of the Franchising Middle East (FME) exhibition. This year's FME trade show has seen a 30 percent increase in floor space as exhibitors from across the MENA region and internationally look to Dubai as a launch pad for further regional growth. "This year's FME promises to be our largest show to date. FME will boast a variety of first time exhibitors as well as repeat exhibitors, all of whom are taking increased floor space. This shows us that companies are confident of securing deals and expanding their brands' reach across the Middle East," said Abdul Rahman Falaknaz, Chairman of International Expo-Consults (IEC), the organiser of FME. FME 2011 will welcome franchise brands from across the world, such as Subway, as well as home-grown portfolios, including Emarat and ENOC. Subway restaurants chain in the Middle East has recently undergone a period of rapid expansion, and now operates 100 outlets in the UAE, 44 in Kuwait and 43 in Saudi Arabia, following the addition of three outlets in the UAE and Kuwait and two in Saudi Arabia at the end of 2010. Emarat is also expanding its franchise outlets. The petroleum giant opened its fourth Freshplus outlet in the UAE.
