The MENA region is fast becoming a global centre for growth and innovation, especially in the areas of digitalisation and retail format innovation. Continued focus on economic diversification across the Gulf Cooperation Council (GCC) has resulted in the development of a world-class retail infrastructure. In this episode we take a deep dive into Ola Energy, the roadside retailer we describe as the “EG Group” of the MENA region. Plus, we exclusively discuss the contents of a unique and exciting report ‘Fuel & Convenience Retail in Saudi Arabia’ just published by strategic retail consultancy Shopworks.
Joining Dan Munford in the co-host seat is Nikolay Vylegzhanin, Regional Director at Shopworks and NACS Relationship Partner for the Middle East. Our guests are the insightful Amged ElHanbali, Head of Retail at Ola Energy and Craig Philipson, Managing Director of Shopworks.
Ola Energy operate across the MENA region and following a quick introduction and update on the business, Amged looks to the future of retail; exploring new format layouts, segmentation and real estate. As well as emphasising the importance of focus shift from product and supply to the customer centric approach.
With the publication of the Shopworks report (‘Fuel & Convenience Retail in Saudi Arabia: Country Deep Dive’), Craig and Niko are well versed in the innovation and opportunities in the Saudi Arabian market, so what are the highlights?
With a population of 36.3 million and 17.2% of the World’s proven oil reserves, Saudi Arabia is not only the Middle East’s largest economy, it is also one of the World’s fastest growing economies. And, unlike European markets, roadside retail site numbers are set to grow. In fact, it is is anticipated that the total number of fuel stations in Saudi Arabia could grow from 10,000 to at least 18,000 sites to satisfy the market. This report examines this considerable and exciting opportunity and details how the fuel business, carwash, convenience/foodvenience categories are likely to develop.
Understanding where the opportunities are for new stations in the Saudi Arabian market is an enticing prospect. That’s why Shopworks has created a whole space index which looks at the 13 provinces of the Kingdom of Saudi Arabia and identifies the front runners. This is a unique and proprietary Shopworks analysis which highlights areas of the country most likely to have fuel station investment opportunities. In order to calculate this, many factors are taken into consideration, including the number of petrol forecourts currently within each province, customer mobility, population size, land mass, registered vehicles and customer spend.
This episode of Shop Talk LIVE will provide highlights of what the Shopworks report covers and some conclusions. To find out more about purchasing the full report and reserving a 1-1 workshop session on the Saudi Arabian market with Shopworks, please contact us: [email protected]