KSA Retail Market Dynamics, Q2 2025

Super-regional malls maintained high occupancy rates in Riyadh, while Jeddah faced broader challenges across formats. Community centres have emerged as the strongest performers in rental growth across both cities, demonstrating varied success across the retail hierarchy.

Major retail chains leveraged their bargaining power amid increasing supply, successfully negotiating favourable terms, including CAPEX contributions and location holds without firm commitments, as they strategically evaluated expansion opportunities.

Riyadh consistently outperformed Jeddah across all retail categories, reflecting the capital's stronger retail fundamentals, greater investment focus, and higher consumer spending power.

Fashion retailers demonstrated stability and growth, while F&B operators—particularly local coffee shops—faced operational challenges, and entertainment venues such as cinemas contended with emerging oversupply concerns.