Saudi Arabia's Point-of-Sale Spending Declines During Eid Holiday

Saudi Arabia recently experienced a significant decrease in point-of-sale spending, totaling SR8.34 billion ($2.22 billion) from June 16 to 22. Riyadh, the capital city, accounted for 30.3% of this total. Transactions at restaurants and cafes, the largest category at 19.31%, saw a 20% decline to SR1.61 billion during this period.

During the Eid al-Adha holiday period, there was a noticeable drop in spending as families tended to stay home or focus on the Hajj pilgrimage rather than shopping and dining out. This trend is common during vacation periods when people prioritize family gatherings and religious activities.

Prior to the Eid week, spending on clothing and footwear surged to SR1.35 billion, marking the highest figure in recent weeks. The week after Eid typically witnesses increased spending on food, clothing, and services as people resume their regular shopping habits.

Spending on food and beverages from June 16 to 22 accounted for 16.35% of total spending, with a 32.4% decrease to SR1.36 billion. Miscellaneous goods and services, including personal care items, saw a significant 47.4% decrease to SR991.6 million.

Despite the overall decrease in spending, the hotel sector experienced only a slight 5.1% drop in point-of-sale transaction value, while gas stations saw a more substantial 21.1% decrease. The footwear and clothing sector recorded the highest decline at 64.4%, indicating a shift in consumer priorities during this period.

Riyadh led in point-of-sale spending with SR2.46 billion, followed by Jeddah at SR1.17 billion. Hail and Madinah saw decreases of 45.9% and 37%, respectively. Tabuk and Dammam experienced the highest losses in spending, with decreases of 52.6% and 47.4%, respectively.

The decrease in point-of-sale spending during the Eid al-Adha holiday period in Saudi Arabia reflects a shift in consumer behavior towards more conservative spending patterns. As families focus on religious observances and stay-at-home activities, certain sectors such as food and beverages, clothing, and personal care items experienced notable declines. While this trend is common during vacation periods, it highlights the importance of understanding cultural and religious influences on consumer spending habits.