Kearney survey reveals UAE, Saudi consumer prices hiked in Q4 2022
Management consulting firm, Kearney, exploring consumer sentiment and purchasing habits, revealed that 88 percent of those surveyed in the UAE (79 percent in Saudi Arabia) highlighted concerns about global market volatility and rising inflation. In the UAE, 83 percent noted an increase in the prices of goods purchased over the last three months while 72 percent in Saudi noticed similar increases. However, despite concerns and noticeable price hikes, consumers do not expect their spending to be impacted with almost half in KSA (46 percent) and UAE (56 percent) planning on making a major household purchase in the next six months.
In Saudi Arabia (KSA), price increases were felt most in food and beverage (76 percent) while UAE saw the largest price increase food and beverage at 85 percent (76 percent in KSA). Transport including gas prices rose by 77 percent in UAE (57 percent in KSA). Other increases were felt in restaurants and hotels (72 percent in UAE; 67 percent in KSA), clothing and footwear (70 percent in UAE and marginally lower in KSA at 63 percent), electronics (61 percent in KSA and 68 percent in UAE).
Online purchasing remains a popular channel for both UAE and KSA shoppers, mainly due to the ease of purchase (UAE 66 percent; 74 percent KSA), saving money (UAE 62 percent; KSA 58 percent), variety (51 percent for both) and ease of delivery (UAE 48 percent; 49 percent for KSA). When it comes to shopping in brick-and-mortar stores, the importance of the in-store experience and convenience increased by 36 percent and 26 percent respectively, compared to 2021.
Debashish Mukherjee, Partner, Kearney Middle East, said, "By closely monitoring the evolving face of retail and adapting their strategies, key stakeholders in the retail sector can capitalize on this positive, local sentiment. This will ensure that they stay relevant and engaged with consumer needs to remain competitive.”