Retail
From The Report: Kuwait 2015
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With GDP per capita among the highest in the world at $43,200, Kuwait is seeing its retail market continue to perform robustly, underpinned by a strong appetite for luxury products and the strong purchasing power of a young and diverse population. The value of wholesale and retail trade in Kuwait grew 22% between 2010 and 2013, reaching a value of $5.65bn. Meanwhile, the local retail market is forecast to expand at a compound annual growth rate (CAGR) of 6.7% between 2013 and 2018. While traditional retailers remain popular, sales at Kuwaiti supermarkets and hypermarkets are forecast to expand at a CAGR of 9.6% between 2013 and 2018.

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Overview

Bases covered: Though the market skews towards luxury, it caters to a variety of tastes and budgets
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A marked multiplicity of tastes and a strong appetite for luxury products underpin the thriving Kuwaiti retail sector. Given the country’s young and diverse demographic profile and its high level of purchasing power, the market – although relatively small due to the limited size of the population – is expected to continue to attract investment. By the Numbers Kuwait counted a population of just over 4m people in 2014, according to figures from the Public Authority for Civil Information (PACI).…

Analysis

New luxury: A thriving high-end market underpins the success of many brands
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In spite of its relatively small population, Kuwait has all the makings of a thriving luxury retail market. With GDP per capita among the highest in the world, spending power is consequently very high. This increased ability to purchase goods, combined with a young population that views shopping as a popular leisure activity in its own right, suggests there is major potential for the luxury retail segment. OF GREAT OPPORTUNITY: The 2014 Knight Frank Luxury Retail Opportunities Index places…

Analysis

Supersizing hypermarkets: While traditional retailers remain popular, larger-format chains are expected to expand going forward
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Although the hypermarket format is nothing new for Kuwaiti retail, penetration remains relatively low by regional standards. According to A.T. Kearney’s latest retail report, the Kuwaiti groceries market is fragmented, with the top five retail groups accounting for just 10% of the market. Traditional retailers – cooperatives, local corner shops and markets – dominate the grocery business. However, this looks likely to change in the coming years with the growth of super- and hypermarket…