Saudi Arabia's POS Spending Trends in April 2021

Saudi Arabia witnessed a 3% rise in point of sales (POS) spending in April, totaling around SR53 billion ($14 billion), compared to the same period last year. Data from the Saudi Central Bank highlighted that 30% of this expenditure, amounting to SR15.83 billion, was directed towards beverages, food, restaurants, and cafes. Additionally, 12% of the spending was allocated to miscellaneous goods and services, showing a notable growth rate of 22.5%. Despite education spending representing only 1% of POS sales, it experienced the highest growth rate at 53%.

The month of April saw a decline of 11% in POS sales compared to March, which coincided with the holy month of Ramadan. This decrease is attributed to seasonal patterns, as families tend to increase their purchases during Ramadan for Iftar meals and festive arrangements. The integration of cloud-based POS systems has become crucial in Saudi Arabia's business environment, transforming restaurant operations and improving efficiency in tasks like order taking, inventory management, and billing.

The Food & Beverage industry in Saudi Arabia is undergoing rapid changes, driven by evolving consumer preferences such as a focus on health and wellness, technological advancements, fusion cuisine, sustainability practices, interactive dining experiences, and the rise of specialty coffee culture. Riyadh emerged as the leader in POS sales distribution with a share of 32%, followed by Jeddah at 14%. Riyadh's position as the capital and economic center contributes significantly to its high consumer spending and vibrant retail scene.

The latest data on POS spending in Saudi Arabia for April sheds light on the dynamic consumer behavior and market trends shaping the country's retail landscape. With a notable increase in overall spending and specific sectors experiencing significant growth, businesses are adapting to meet the changing demands of consumers. The utilization of technology, like cloud-based POS systems, is playing a pivotal role in enhancing operational efficiency and customer service. As the Food & Beverage industry continues to evolve, driven by diverse factors, Saudi Arabia remains a key player in the region's retail sector, offering a blend of traditional and innovative experiences for consumers.