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FINANCIAL NEWS
Report warns Saudi retail of staff shortages
11 Dec 2011
(MENAFN) A report, issued by Jones Lang LaSalle, warned of Saudi retail sector of staff shortages because of new curbs on visas for foreign workers, Arabian Business reported.
The report said that retail brands must focus investment into customer service training for employees or risk a shortfall in qualified Saudi workers to staff stores.
The kingdom is already overtaken by its Gulf neighbors on the growth of shopping malls and retail spending, partly because of the market’s unique cultural restrictions.
Saudi Arabia’s ban on cinemas has also curbed the shift of malls into entertainment centers seen in other Gulf states, while the ban on women driving has reduced the spend of a key market segment.
The report added that the shortage of female changing rooms and the family-only policies adopted by some malls, which restricts access for young, single men, also hurt retail spend.
Also the kingdom’s monopoly of a small number of groups that control 90 percent of brands and malls prevents smaller, independent retailers from entering the market.
Retail sector accounts for more than 17 percent of Saudi Arabia’s total GDP. The kingdom expects retail spending to top USD68 billion by year-end.
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