This report on the economics of discount retail in Saudi Arabia provides a concise analysis of changes in the retail sector and price competition pressures. It documents the decline in Abdullah Al Othaim Markets’ profits and its swing to a net loss of SAR 107.13 million in the second quarter of 2026, driven by promotional pressures, inventory provisions, and ERP system issues. At the same time, Al Sadhan is restructuring by closing 28 large branches and shifting to smaller stores (SPAR Express). The report concludes that the sustainability of value retailers depends on operational efficiency, inventory turnover, and cost control, as the basis of competition shifts from store size to the efficiency of each operating unit.
Report by Yamamah Insights:
- Analysis team:
- Mohammad Alghaihab (Financial Analyst) @Mohammad Alghaihab
- Albatool Bedairi (Financial Analyst) @Albatool Bedairi
- Noof Alanazi (Financial Analyst) @Noof Alanazi
- Supervision:
- Financial and Economic Analyst Hamad Alsaeed @Hamad Alsaeed
