During the ongoing fasting month of Ramadan, the faithful across the MENA region are expected to spend more than $6 billion, boosting a retail market battered by the Covid-19 pandemic in the last two years.
The spending through the month of April has been widespread, including a broader increase in sales volume and a diversification of family-oriented retail options that enhance the prosperity of the local market.
Across the MENA region, hundreds of thousands of customers and visitors have flocked to shopping centers, buying food, clothes and other items.
Gifts and souvenirs
According to a survey from Red Seer Research Firm, consumers in the MENA are predicted to spend $6.2 billion online during Ramadan in 2022.
At the same time, retail sales in the MENA region accounted for 16 percent of all e-commerce transactions annually during Ramadan’s holy month.
Around 40 percent of the region’s yearly e-commerce sales are generated during Ramadan and Black Friday.
According to the report, 87 percent and 70 percent of consumers aim to increase their food and fashion spending.
The report also mentioned that fashion would see its proportion expand beyond a third. During the season, there are two distinct sales peaks.
The first is the month before Ramadan, when there is an uptick in food and home decor demand. As for the second type, it occurs before Eid, when demand for items in the fashion and beauty sector grow.
Gifts have risen as a result. Suppliers must be proactive throughout the month because of these differences in sales.
In the home and electronics industries, 62 percent of customers plan to raise their expenditure on various items.
Increasing spending in Saudi Arabia
Toluna, a worldwide digital market research firm, polled Saudi consumers’ expectations for Ramadan and Eid al-Fitr celebrations.
According to the study, 57 percent of respondents reported increased spending on Eid al-Fitr gifts in 2022.
Even though 61 percent of participants expressed optimism that life would return to normal after two years of the repercussions of the Corona pandemic and the decline of force majeure conditions that resulted in the closures and disruption of social communication.
The study showed that spending on shopping for Ramadan this year in Saudi Arabia’s markets is 46 percent more than the previous year in all sectors, especially entertainment (+41 percent), through social media (+38 percent); and during discounts (+37 percent).
At the same time, Saudi spending on travel, accommodation, and dining in restaurants rose by 37 percent, ordering food (+39 percent) and cosmetics (+24 percent).
