UAE grocery retail market to top $40.5 billion in 2024 post Spinneys IPO

While large supermarkets may be the focus among investors, 81% of the nation’s groceries are still sold at small stores known as baqalas, 24SEVEN says

The UAE grocery retail market will exceed $40.5 billion in 2024 as focus on the sector increases after the IPO of UAE-based supermarket chain Spinneys, a new report said.

Retail technology firm 24SEVEN said despite the focus on the larger end of the market brought about by the Spinneys IPO, with shares expected to start trading on Dubai Financial Market (DFM) on Thursday, 81% of grocery retailers in the country are still “baqalas” or small grocery stores of 50sqm or less.

24SEVEN’s research carried out over three months found that the grocery retail market will exceed $40.5 billion in 2024, while a previous report by WAMDA showed that figure was $19 billion in 2019.

Among residents surveyed across the country, 60% still visit small grocery stores or baqalas every week, even though less than 1% have advanced financial technology in their stores,and 70% do not have a connected point-of-sale (POS) checkout system, the research showed

The top reason for shopping in a baqala is the convenience of location close to home or work at 59%, followed by access to specific products or items at 31%, extended opening hours at 27%, friendly staff 20%, and a preference for shopping locally 20%.

Source: zawya

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