Retail industry in Egypt: What you need to know!
Egypt has improved industrial development in many ways, and the market is following people’s needs and wants and is acting towards fulfilling them.
Egypt has the largest market in the Middle East with a population of more than 84 million people. And with a population of almost 100 million people and a growth rate of about 2 million people per year, continues to be a sizable market for retailers and producers of fast-moving consumer goods.
This has kept a number of significant domestic producers alive and drawn major international players to the market. However, the sector must now adapt in order to face new challenges brought on by economic instability and the pound's depreciation.
Despite this, modern retail spaces are growing, and customers are becoming more interested in interacting with retailers via new technologies, creating new opportunities for the sector to grow in order to accommodate shifting consumer trends.
What is the retail industry?
All businesses that sell products and services to consumers are considered to be in the retail sector. Various retail sales and store types can be found all over the world, including grocery, convenience, electrical, cloth, furniture, DIY, and food and beverages.
The retail sector experiences consistent growth year over year and employs a sizable workforce globally, especially given the rising popularity of online shopping.
This fast-paced industry's competitiveness has become more apparent in recent years. Retail establishments have been forced to reevaluate their established procedures and strategies that have governed the industry for years especially after the pandemic.
An overview of the retail industry in Egypt
The size of the Egyptian Retail And Wholesale Market is anticipated to increase between 2023 and 2029. The retail and wholesale sector included a wide range of establishments, such as supermarkets, convenience stores, department stores, and hypermarkets.
These companies offer both consumers and businesses critical products and services. This industry has been one of the most significant and developing markets in the nation, and it is expanding due to a variety of growth factors.
In order to stay ahead of the fierce competition that is constantly growing in Egypt's retail and wholesale markets, businesses must constantly work to provide their customers with the best goods and services at the best prices.
To stay competitive, businesses in this industry must constantly innovate. They must understand how to efficiently manage their supply chains and logistics in order to deliver their services and goods on schedule and at competitive prices.
Egypt's retail market is anticipated to increase from $200 billion in 2020 to $254 billion in 2025, with a compound annual growth rate (CAGR) of 5%.
According to management consultant Kearney's Global Retail Development Index (GRDI), Egypt has emerged as one of the top performers.
Egypt, which now occupies seventh place, has moved up 19 spots on the index, which includes 35 global emerging economies.
Egypt’s retail growth contributes to the rise of secondary cities, increased internet and mobile penetration, popularity of online shopping and e-commerce on demand services, as well as the emergence of social media shopping platforms and other digital marketplaces. These factors play an important role in progressing the retail industry in Egypt!
The future of retail spaces in Egypt
With the development of the new cities across Egypt, the demand for retail spaces is ascending.
Moreover, with new technology paving the way for a more inviting online experience, this year should be an interesting year for retail as the industry overcomes challenges from the previous three years and makes a significant step toward what future shopping will look like.
Despite that, the demand for physical stores will still rise. And to prove that, Majid Al-Futtaim in Egypt, intends to invest over EGP 400 million in the Egyptian market in 2023 and to double the amount to hit EGP 750 million through 2025, according to the Country Manager of Majid Al-Futtaim Retail in Egypt. (Al Ahram Online, December 2022).
With that said, Llivia in Mivida Business Park, owned by Tayf, has retail spots to catch!
Llivia is magnificently designed, offering the best shops, services, and restaurants, with offering an unrivalled shopping and retail experience.
With the widest selection of dining and entertainment options, Mivida offers an international collection of luxury brands.
These highly sought-after retail options are displayed in a dynamic architectural setting that is enhanced by first-rate amenities and guest services, ensuring the ultimate retail experience.
Contact us through our website if you want to know more!
