Prepared for Hirad H. | Delivered August 13, 2019
Retail Structures MENA
To gather information about retail structures and markets in selected MENA countries.
Tunisia's retail market is similar to Algeria's and other North African countries, with the domination of
International supermarket chains and franchises have been developing over the last decade thanks to the emergence of modern
Following the 2011 revolution and the
destruction of supermarkets a
nd retail spaces, there has been a recovery with the development of new retail spaces, boosted by new consumption patterns and the influx of high-income Libyan migrants.
Modern distribution in Tunisia represents
22% of total retail
turnover, compared to 23% for European countries.
has been developing in the last few years but remains minor.
The retail network is composed of around
250,000 small shops,
ranging between 20 and 50 sq meters.
Urban areas have outdoor markets selling
and mostly food products.
Modern malls have started to appear since a
The retail industry in Kuwait is expected to grow at a
CAGR of 4.2% o
ver the next few years, being the second fastest-growing retail market in the Gulf.
70% of Kuwaiti
residents are expatriates, they are responsible for the majority of sales and employment in the local retail market.
Retail in Kuwait is split between large
regional shopping centers
and popular community centers.
The average occupancy of mall space is very high in Kuwait,
estimated at 93%.
Egypt's retail market is still
nd relies on trade in physical locations, with some specific "golden" districts account for most of the sales.
E-commerce in Egypt represents only
of total retail sales but is
Products sold online tend to be cheaper as the o
verheads cost less.
International retailers that entered the Egyptian market recently struggled with
and a restriction in imports, which limits the frequency of the shipments.
However, it remains the l
argest retail market
in the Middle East.
of leasable retail space is located in Grade A, which host international upscale retailers and franchised food outlets, as well as entertainment options, and Grade B malls.
malls include supermarkets or department stores but have a limited number of international brands.
It is expected that Grade A malls will
grow four times
faster than Grade B malls, given the taste of locals for upscale shopping options.
The top ten malls in Bahrain include two large ones, five medium, and three small retail outlets, and attract
51 million visitors/year.
The retail network in Algeria is dominated by
The presence of large
who supply formal and informal retailers alike is making the problem hard to solve for the government.
The retail sector in Algeria is
with competition from the informal market, a high level of fragmentation and a high cost of logistics.
Recently, some international
have been opening in malls but small neighborhood stores still represent the majority of the retail sector.
However, as the middle-class grows, modern retail is increasing, but still only represents a
of the total turnover.
The first modern shopping mall in Algeria was only inaugurated in the capital in
with a $70 million investment from a Joint Venture made of Valartis Group and Jelmoli.
This mall has 45,000 sq meters of leasable area and attracts
millions of visitors.
In Algeria, a foreign company is required by law to hold a
minority share i
n any Joint Venture it enters.
Foreign companies are also submitted to
high import duties, a
lack of modern leasable space and competition from the informal market.
Some foreign brands have settled in Algeria such as
Mango, Aldo, Z
ara, Benetton, and Alain Afflelou.
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