Othaim Markets: A Major Force in Saudi Arabia’s Retail Sector

Othaim Markets Saudi Arabia is one of the most established names in the Kingdom’s grocery business.

Its stores serve customers looking for fresh food, household products and everyday essentials, while the wider company has built a retail operation with deep roots in Saudi commerce.

The story goes back to 1957, when Saleh Al Othaim established a trading business in Riyadh.

What began as a traditional commercial operation gradually developed into a modern supermarket and wholesale business.

Today, Abdullah Al Othaim Markets is a publicly listed Saudi company and one of the country’s major food retailers.

Othaim Markets Saudi Arabia Has a Long History

A long business history can be an advantage in retail because customer habits develop over generations.

The Othaim name has been present in Saudi trade for nearly seven decades.

However, surviving that long requires change.

The way Saudis shop today is very different from the way families bought groceries in the 1950s or 1960s.

Modern supermarkets need large distribution systems, digital pricing tools, loyalty programs and advanced inventory management.

Customers also have much more choice.

Therefore, Othaim’s development is not simply a story of opening more stores.

It is a story of adapting an old retail name to a modern market.

Store Growth Remains Important

Othaim continued expanding during 2025.

According to the company’s Saudi Exchange disclosure, it opened 12 stores and closed five during the year.

Annual revenue reached around SAR 11.09 billion.

That level of sales shows the scale of grocery retail in Saudi Arabia.

People may spend relatively small amounts during each visit, but millions of transactions add up quickly.

A supermarket business also has high operating demands.

Stores need staff, refrigeration, electricity, logistics, technology and reliable supply.

Margins can be tight, which means efficiency matters.

A retailer can have strong sales while still needing careful control over operating costs.

Competitive Prices Are Part of the Proposition

Grocery shoppers pay attention to value.

A customer may prefer one store because of convenience but change stores when another retailer has stronger promotions.

This creates constant price competition.

Othaim positions itself around quality, competitive pricing and customer service.

That approach is important in a market where customers can compare supermarket offers quickly.

Digital advertising and social media have made price comparison even easier.

A promotion that once appeared only in a printed leaflet can now spread across phones within minutes.

For retailers, this means pricing and promotions need to be both competitive and easy to understand.

Private Brands Give Othaim More Options

Othaim Markets has also developed private brands.

Its Hali brand covers a range of consumer products, while Rex focuses on non-food household items.

Private-label products can serve several purposes.

They can give customers lower-cost alternatives to international brands. They can also help retailers build products that are available only in their own stores.

For Othaim, private labels create more control over product selection and pricing.

However, customers still expect quality.

A cheaper product will not create loyalty if the experience is disappointing.

That means private labels need to compete on value, not simply price.

Data Is Changing Grocery Retail

Modern grocery retailers collect large amounts of information.

They can see which products sell quickly, which promotions perform well and how demand changes between stores.

Used carefully, this data can improve the shopping experience.

KSA Today previously reported on a Saudi customer-engagement summit where Othaim Markets received recognition for using customer data.

This highlights an important change in retail.

Supermarkets are no longer only physical businesses.

They are also technology businesses.

Inventory systems, customer apps, loyalty platforms and digital marketing increasingly shape how retailers operate.

Saudi Consumers Expect More Convenience

Saudi customers are becoming used to fast digital services.

They can order restaurant meals, pay bills and arrange transportation from their phones.

Naturally, they expect grocery shopping to become easier too.

This is part of the wider consumer and retail transformation across the Middle East.

Traditional supermarkets are responding by improving digital offers, online ordering and delivery options.

For Othaim Markets Saudi Arabia, the challenge is to combine these new channels with its physical network.

Stores still matter.

Many customers want to choose fresh produce themselves or shop without waiting for delivery.

However, online services provide extra convenience.

The future of grocery retail will likely combine both.

Logistics Remains the Hidden Engine

Customers see the store.

They rarely see the distribution network behind it.

Yet logistics is one of the most important parts of grocery retail.

Products must arrive in the right quantities and at the right time.

Fresh and frozen goods require temperature control.

Promotional products need to reach stores before campaigns begin.

When logistics problems occur, customers notice empty shelves.

That is why supply-chain systems are so important for large retailers.

In its 2025 results, Othaim noted that the implementation of a modern ERP system temporarily affected some logistics operations during the fourth quarter.

The company said operations had begun improving afterward.

This is a useful example of how technology upgrades can create short-term challenges even when they are designed to improve the business over time.

Employees Shape the Store Experience

Retail is also a people business.

Technology can improve inventory and payments, but customers still interact with cashiers, supervisors and store staff.

Employee training therefore matters.

In 2026, KSA Today’s coverage of the Best Workplaces in KSA list included Al-Othaim Markets among the large-company category.

Workplace recognition does not automatically tell customers what every store experience will be like.

However, it shows why employee culture has become an important part of the wider retail conversation.

Happy, well-trained employees can provide better customer service.

Retail Events Bring the Industry Together

Saudi Arabia’s growing exhibition economy also creates opportunities for retailers and suppliers.

Food exhibitions, technology shows and logistics conferences bring together producers, distributors, retailers and service providers.

Companies can discover new products, packaging ideas and retail technologies.

For businesses following Middle East events and exhibitions, Saudi Arabia has become an increasingly important location for retail and food industry gatherings.

These events can help companies such as Othaim find new suppliers or understand emerging consumer trends.

They also give international companies a route into the Saudi market.

Growth Creates Responsibility

Large retailers have a broader economic role.

They buy products from suppliers, employ thousands of people and serve communities across the Kingdom.

They can also help local manufacturers reach customers.

As Saudi Arabia focuses on local content and economic diversification, supermarket shelves can become an important place for Saudi-made products to gain visibility.

Othaim’s scale gives it influence over what customers discover.

This also means decisions about sourcing, pricing and sustainability can have wider effects.

Major expansion plans and retail investments are increasingly covered through Saudi corporate announcements as the Kingdom’s consumer market continues to grow.

Why Othaim Markets Remains Relevant

The grocery business can look simple from the outside.

Open stores, stock products and sell them.

In reality, competition is constant.

Customers want better prices. Suppliers want strong partnerships. Technology keeps changing. Online shopping adds new pressure.

Othaim Markets Saudi Arabia has remained relevant because it has continued adapting while keeping its core focus on everyday retail.

Its long history gives the company familiarity.

Its store network gives it reach.

Its use of technology and private brands gives it new ways to compete.

The next stage will depend on how well it combines these strengths.

Saudi customers are unlikely to stop visiting supermarkets.

However, they will continue expecting those supermarkets to become faster, smarter and more convenient.

Othaim’s challenge is to deliver that modern experience without losing the value and familiarity that built its name in the first place.

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