Doha, Qatar: Qatar’s retail mart owners have expressed delight in growing market demand this year. The majority of the retailers noted a surge in profits during January compared to the same period in 2023.
The Peninsula spoke to a few shop owners in the residential areas across the country. Muhammad Najji, a shopkeeper in Al Wakra said: “It’s been just the start of the year and we are yet to see a strong momentum in the market. However, compared to 2023 January, we have seen productive sales last month.”
Najji explained that the increasing number of tenants could be a key reason for the rising customers and sales, while the rents in residential apartments have seen a substantial decline post-FIFA 2022 in Qatar. Another retail owner Sayed Abbas said that a “good turnout” of the number of individuals has been on the rise for the past few months, which gives a boost to the retail sector this year and beyond.
“As per our financial database, we are witnessing remarkable gains and the businesses are thriving. We also carry out free door-to-door delivery, which enables the customers to shop and buy products at their convenience.”
Meanwhile, analysts at the international research group Mordor Intelligence state that Qatar’s retail industry anticipates a promising growth of compound annual growth rate (CAGR)of more than 5 percent by 2028.
The report stressed that during the years COVID-19 emerged, the retail market was significantly affected in Qatar, as overall consumer spending dropped. However, the e-commerce industry saw an incremental rise during the lockdowns and restrictions on movement imposed by local governments across the world.
The report said: “Despite the worldwide slump, Qatar’s retail sector performed well. Although stores had to close in the spring due to lockdown measures by governments worldwide to stop the spread of COVID-19, reopening started as early as that summer. Since then, several health regulations have been implemented at malls and retail establishments in Qatar to welcome customers.” Albeit the decline in median monthly rents, a few new malls were opened in the base and the following years. It said that “Online delivery and minimal supply disruption during the pandemic helped grocery stores, mainly thanks to Qatar’s pre-pandemic drive to increase food security and diversify trading.”
Experts outlined that Qatar’s retail industry, however, is “fiercely competitive”, with a small number of important businesses controlling the majority of the market share.
As numerous firms continue to expand their storefronts and consider the commercial possibilities in new regions, the organised retail market has been developing swiftly.
Qatar’s impressive hypermarkets, supermarkets, and other retail chains are firmly replacing the majority of unorganized retail establishments.
A large-scale continuation of this is expected during the forecast period, contributing considerably to market growth. Some of the prominent players dominating the market include Chalhoub Group, Alshaya, and Al Tayer Group, among others.
