In April, the Kingdom of Saudi Arabia witnessed a modest upswing in consumer expenditure through point of sale (POS) transactions, amounting to approximately SR53 billion ($14 billion), marking a 3 percent year-on-year increase, according to the most recent figures.
The data, disseminated by the Saudi Central Bank, indicates that a notable share of POS transactions, around 30 percent or SR15.83 billion, were dedicated to the food sector, encompassing beverages, eateries, and cafes.
An additional SR6.51 billion, representing 12 percent of the total POS expenditure, was directed towards a diverse range of goods and services that include personal grooming, supplies, and maintenance. This particular sector exhibited an impressive 22.5 percent surge, making it one of the fastest-growing segments.
While the education sector accounted for a mere 1 percent of the POS market, it showed a remarkable 53 percent escalation in spending, reaching SR500 million.
Comparing April’s figures to those from March, which coincided with the celebration of Ramadan and witnessed a peak in POS sales at SR59.7 billion, there was an 11 percent downturn in April. This decline is likely linked to seasonal shopping trends, as consumers typically escalate their purchases during the holy month for various Ramadan and Eid festivities.
Cloud-based POS systems are increasingly recognized as instrumental in the Saudi business realm, especially in the F&B industry, for their ability to streamline operations and elevate customer service, as highlighted in a recent industry report.
These innovative systems offer real-time data analysis, which is crucial for insights into sales patterns and inventory control, allowing for strategic decision-making and enhanced service offerings.
Moreover, features like integrated payment solutions, robust security protocols, and the scalability of cloud-based POS systems are empowering Saudi restaurants to thrive in a competitive and evolving market.
As the country forges ahead with its digital transformation, the adoption of advanced POS technology is pivotal for businesses, particularly in the food and beverage sector, to capitalize on growth opportunities and future-proof their operations.
Another insightful report sheds light on the rapid evolution of Saudi Arabia’s F&B industry, driven by changing consumer preferences and technological advancements. Trends such as the rise of health and wellness, the integration of technology in dining, and the growth of fusion cuisine are redefining the culinary landscape of the Kingdom.
The industry is also embracing sustainability and interactive dining experiences, which are increasingly sought after by consumers. These developments, along with the burgeoning specialty coffee movement, reflect the industry’s commitment to diversification and delivering premium experiences.
Regionally, POS transaction data from SAMA shows that Riyadh, the capital city, led the pack with a 32 percent share of sales, equating to about SR17 billion. Jeddah followed with a 14 percent share, totaling SR7.7 billion. Riyadh’s prominent economic role and its vibrant, diverse consumer base underpin its position as a powerhouse in retail spending within the Kingdom.