Lulu Retail opens new hypermarket in Jeddah’s Aziz Mall in Saudi Arabia
Expansion aligns with GCC strategy in market eyeing US$398bn by 2030.
SAUDI ARABIA – Lulu Retail Holdings PLC has launched a new hypermarket at Aziz Mall in Jeddah, Saudi Arabia.
The retailer, listed on the Abu Dhabi Securities Exchange and active across GCC countries, described the outlet as spanning 108,500 square feet.
This addition raises Lulu’s total store count in Saudi Arabia to 65.
Company officials framed the opening as part of a broader push to add outlets throughout the GCC region.
Saudi Arabia’s retail environment, particularly supermarkets and grocery channels, ranks among the Middle East’s quickest to expand.
Government efforts under Vision 2030 fuel this trend through economic shifts away from oil, fast city growth, a youthful population where over 60% sit under 35, higher spending power, and tourism gains.
Retail now claims more than 10% of the Kingdom’s non-oil GDP, with consumer outlays hitting peaks in 2024.
Reforms in roads, supply chains, and cashless systems further aid the sector.
Market expansion forecasts
Analysts project the overall Saudi retail sector, valued at US$268bn to US$282bn in 2024, to climb to US$398bn to US$411bn by 2030-2034.
Growth rates will vary from 3.8% to 7.1% compound annual across categories.
Food and grocery sales, central to hypermarkets, should reach US$31.4bn in 2025 at about 5.7% yearly growth and make up roughly 55% of retail activity.
Supermarkets and hypermarkets lead modern grocery trade, with supermarkets alone pegged at US$30bn in 2023 and heading to US$38bn by 2032.
In-person stores hold sway for food buys due to shopping habits, though e-grocery picks up speed.
Competitive field
Local operators dominate the supermarket space with vast networks.
Panda Retail Company, under Savola Group, runs over 230 sites as a top hypermarket player.
Abdullah Al Othaim Markets oversees around 227 locations with emphasis on food supply stability.
BinDawood Holding, covering BinDawood and Danube brands, manages about 73 stores in upscale and city spots.
Lulu Hypermarket holds ground as a key international entrant alongside Tamimi Markets, Farm Superstores, Carrefour, Al Raya, and Manuel.
Domestic names like Panda and Danube edge out foreign rivals in hypermarkets, while chains such as Panda eye 20 fresh openings in 2025 targeting Riyadh and outlying zones.
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