Grocery basket price gap across retailers hits 20%
Food markets in Saudi Arabia witnessed heightened seasonal activity during Ramadan, with demand rising for essential food items and consumer spending gaining momentum. 
Amid the growing number of purchasing channels, including traditional retail stores and grocery delivery apps, price comparison became a key factor in consumers’ purchasing decisions, particularly as price differences widened across stores and platforms.
Accordingly, Argaam conducted a survey of a basket of basic food items across several major retail chains and delivery apps in the Kingdom, aiming to measure cost differences and analyze competition among sales channels.
Consumer spending rises during Ramadan
Point-of-sale (POS) data showed higher consumer activity during Ramadan. Total sales reached SAR 58.8 billion during last Ramadan, up 21.2% from SAR 48.5 billion in 2024.
The number of transactions during Ramadan 2025 rose to 803.6 million from 682.1 million a year ago, reflecting stronger spending momentum and broader purchasing activity during the season.
The food and beverage sector accounted for the largest share of spending, representing 15.6% of total POS sales and totaling SAR 9.2 billion during Ramadan 2025.
POS sales during Ramadan (2024–2025)
Item
2024
2025
Change
POS sales value (SAR bln)
48.5
58.8
+21.2%
No. of POS transactions (mln)
682.1
803.6
+17.8%
Sales value of food beverages (SAR bln)
7.7
9.2
+19.5%
Food beverage sector share
15.9%
15.6%
(0.3%)
Sales value of restaurants cafes (SAR bln)
6.5
6.3
(3.1%)
Share of restaurants cafes sector
13.4%
10.7%
(2.7%)
Ramadan season data is calculated as per the Gregorian calendar, covering March and April.
Food retail market: Wide presence, strong competition
Saudi Arabia’s food retail market has diverse players and an expanding branch network.
Abdullah Al Othaim Markets Co. leads the sector in store count, with around 412 branches, followed by Panda Retail Co. with about 213 branches. Other brands such as Danube Co., Tamimi Markets, LuLu Hypermarket, Al Mazraa Markets, and Carrefour are also widely present across different regions of the Kingdom.
No. of branches of food retail companies in Saudi Arabia
Al Othaim
BinDawood
Danube
Al Mazraa
Panda*
Carrefour*
Tamimi*
LuLu*
412
33
69
98
213
24
111
65
Comparison of grocery basket across stores
Argaam tracked the prices of several key staple food items in retail stores during the period from February to March 2026, standardizing products and sizes to ensure an accurate comparison.
The results showed a noticeable variation in the cost of the grocery basket between stores.
Comparison of Food Product Prices by Store – SAR (February – March 2026)
Product
Speedi – Othaim
Danube – Bin Dawood
Al Mazraa
Panda
Carrefour
Tamimi
Lulu
Lamb (1 kg)
63.99
99.99
72
109.99
99.96
99.95
79.90
Fresh Chicken (1 kg)
20.50
21.25
21.99
22.99
22
21.75
21.25
Al Wataniya Eggs (30 pcs)
22.50
21.50
22.95
23.50
22.95
22.50
23.95
Almarai Milk (2 L)
11
11
11
11
11
11
11
Nido Powdered Milk (1.8 kg)
132.99
124.99
123.99
149.50
143.75
122.95
96.50
Nadec Yogurt (1.75 L)
9.50
9.50
9.50
9.50
9.50
9.50
9.50
AlWalimah Rice (10 kg)
97
98.95
97.99
99.99
98.95
97.50
96.50
Afia Corn Oil (1.5 L)
29.99
27.95
25.75
28.99
26.95
28.95
28.50
Aljouf Olive Oil (500 ml)
37.99
37
37.50
39.99
37.50
36.95
35.95
Lurpak Butter (100 g)
8.99
9.95
8.99
9.25
8.95
9.50
8.95
Goody Peanuts (510 g)
21.99
22.99
22.99
22.99
21.95
22.95
21.95
Al Taj Cream (155 g)
6.25
6.50
6.99
6.75
6.25
5.95
6.95
Saudi Tomato Paste (135 g)
2.25
3.95
1.99
2.25
2
1.95
2
Al Osra Sugar (10 kg)
44.99
44.99
44.99
44.99
50
44.95
44.95
L’usine White Toast (600 g)
5
5
5
5
5
5
5
Total Grocery Basket
493
523
491
564
545
518
471
*Prices do not include discounts.
Lulu recorded the lowest grocery basket cost at around SAR 471, while Panda was the most expensive store around SAR 564.
The difference between the two stores is SAR 93, equivalent to approximately 20% of the lowest basket value.
This variation reflects differences in pricing policies across stores, despite standardizing the products included in the comparison.
Price analysis across stores
The comparison shows that some stores adopt an economy pricing strategy, while others target higher-income segments by offering a differentiated shopping experience.
For example:
Lulu, Al Mazraa, and Othaim recorded the lowest grocery basket costs.
Panda, Carrefour, and Danube were among the higher-priced stores in the comparison.
This may reflect differences in marketing strategies, cost structures, and the locations of targeted branches.
Prices across grocery delivery apps
The price monitoring included a comparison of food products across several delivery apps in the Kingdom.
Food Product Prices by Delivery Apps – SAR (February – March 2026)
Product
Ninja
Kmart
HungerStation Market
NaNa
Noon Minutes
Amazon
Careem Market
Fresh Chicken (900 g)
20.75
20.5
25.25
22.25
20.7
20.25
20.5
AlWalimah Rice (5 kg)
51.95
51.95
61.4
50.95
50.65
52.5
50.95
Nadec Milk (1.7 L)
9.5
9.5
9.5
9.5
9.5
9.5
9.5
Goody Tuna (185 g)
9.95
9.25
10.5
9.95
10.75
6
9.95
Afia Corn Oil (1.5 L)
31
31
31.95
31
31
29.56
29.95
Nadec Olive Oil (500 ml)
32.95
32.95
34.95
34.95
41.5
37.99
36.95
Foam White Flour (1 kg)
3.95
3.95
3.5
3.25
3.75
2.95
3.5
Nada Greek Yogurt (160 g)
5.95
5.95
5.95
5.95
5.95
5.95
5.5
Goody Peanut Butter (340 g)
15.95
15.95
17.5
16.75
15.95
12
15.95
Total Grocery Basket
181.95
181
200.5
184.55
189.75
176.7
182.75
The results showed that Amazon recorded the lowest grocery basket cost at around SAR 176.7, while HungerStation market was the highest at SAR 200.5.
The difference between the cheapest and most expensive app is approximately SAR 24 for the same basket.
Apps promote price transparency
The economic analyst Ahmed Alshehri said that the Saudi market is relatively competitive compared to some Gulf countries like Qatar, Bahrain, and Kuwait, pointing out the existence of price gaps between neighboring countries.
Despite taxes, the Saudi market remains a preferred option for purchasing from these countries, especially for certain food products.
He explained that there is intense competition among major market players, with each company focusing on different buyer segments. This competition pressured prices, particularly with the rise of economy-focused stores that operate on lower profit margins and rely on volume sales.
Alshehri emphasized that bulk purchasing and warehouse storage contribute to profit margins, while operational factors play a key role in either improving profits or negatively affecting cost structures.
Pricing strategies are among the most important tools for achieving profit margins, particularly through product classification between necessities and luxuries and display mechanisms inside stores.
Some companies are moving toward manufacturing private-label products at competitive quality levels, reducing prices below mainstream products.
He highlighted the importance of carefully choosing retail locations, adopting pricing policies with fixed margins higher than the market average, reducing inventory size, and targeting specific segments in high-income geographic areas.
He added that apps contributed to market transparency by enabling price comparisons. Customers, especially from the middle class, became more price-sensitive due to awareness and shifting priorities, alongside increased local production, even though these products remain limited compared to the import bill.
Grocery basket price gap across retailers hits 20%
Food markets in Saudi Arabia witnessed heightened seasonal activity during Ramadan, with demand rising for essential food items and consumer spending gaining momentum.
Amid the growing number of purchasing channels, including traditional retail stores and grocery delivery apps, price comparison became a key factor in consumers’ purchasing decisions, particularly as price differences widened across stores and platforms.
Accordingly, Argaam conducted a survey of a basket of basic food items across several major retail chains and delivery apps in the Kingdom, aiming to measure cost differences and analyze competition among sales channels.
Consumer spending rises during Ramadan
Point-of-sale (POS) data showed higher consumer activity during Ramadan. Total sales reached SAR 58.8 billion during last Ramadan, up 21.2% from SAR 48.5 billion in 2024.
The number of transactions during Ramadan 2025 rose to 803.6 million from 682.1 million a year ago, reflecting stronger spending momentum and broader purchasing activity during the season.
The food and beverage sector accounted for the largest share of spending, representing 15.6% of total POS sales and totaling SAR 9.2 billion during Ramadan 2025.
POS sales during Ramadan (2024–2025)
Item
2024
2025
Change
POS sales value (SAR bln)
48.5
58.8
+21.2%
No. of POS transactions (mln)
682.1
803.6
+17.8%
Sales value of food beverages (SAR bln)
7.7
9.2
+19.5%
Food beverage sector share
15.9%
15.6%
(0.3%)
Sales value of restaurants cafes (SAR bln)
6.5
6.3
(3.1%)
Share of restaurants cafes sector
13.4%
10.7%
(2.7%)
Ramadan season data is calculated as per the Gregorian calendar, covering March and April.
Food retail market: Wide presence, strong competition
Saudi Arabia’s food retail market has diverse players and an expanding branch network.
Abdullah Al Othaim Markets Co. leads the sector in store count, with around 412 branches, followed by Panda Retail Co. with about 213 branches. Other brands such as Danube Co., Tamimi Markets, LuLu Hypermarket, Al Mazraa Markets, and Carrefour are also widely present across different regions of the Kingdom.
No. of branches of food retail companies in Saudi Arabia
Al Othaim
BinDawood
Danube
Al Mazraa
Panda*
Carrefour*
Tamimi*
LuLu*
412
33
69
98
213
24
111
65
Comparison of grocery basket across stores
Argaam tracked the prices of several key staple food items in retail stores during the period from February to March 2026, standardizing products and sizes to ensure an accurate comparison.
The results showed a noticeable variation in the cost of the grocery basket between stores.
Comparison of Food Product Prices by Store – SAR (February – March 2026)
Product
Speedi – Othaim
Danube – Bin Dawood
Al Mazraa
Panda
Carrefour
Tamimi
Lulu
Lamb (1 kg)
63.99
99.99
72
109.99
99.96
99.95
79.90
Fresh Chicken (1 kg)
20.50
21.25
21.99
22.99
22
21.75
21.25
Al Wataniya Eggs (30 pcs)
22.50
21.50
22.95
23.50
22.95
22.50
23.95
Almarai Milk (2 L)
11
11
11
11
11
11
11
Nido Powdered Milk (1.8 kg)
132.99
124.99
123.99
149.50
143.75
122.95
96.50
Nadec Yogurt (1.75 L)
9.50
9.50
9.50
9.50
9.50
9.50
9.50
AlWalimah Rice (10 kg)
97
98.95
97.99
99.99
98.95
97.50
96.50
Afia Corn Oil (1.5 L)
29.99
27.95
25.75
28.99
26.95
28.95
28.50
Aljouf Olive Oil (500 ml)
37.99
37
37.50
39.99
37.50
36.95
35.95
Lurpak Butter (100 g)
8.99
9.95
8.99
9.25
8.95
9.50
8.95
Goody Peanuts (510 g)
21.99
22.99
22.99
22.99
21.95
22.95
21.95
Al Taj Cream (155 g)
6.25
6.50
6.99
6.75
6.25
5.95
6.95
Saudi Tomato Paste (135 g)
2.25
3.95
1.99
2.25
2
1.95
2
Al Osra Sugar (10 kg)
44.99
44.99
44.99
44.99
50
44.95
44.95
L’usine White Toast (600 g)
5
5
5
5
5
5
5
Total Grocery Basket
493
523
491
564
545
518
471
*Prices do not include discounts.
Lulu recorded the lowest grocery basket cost at around SAR 471, while Panda was the most expensive store around SAR 564.
The difference between the two stores is SAR 93, equivalent to approximately 20% of the lowest basket value.
This variation reflects differences in pricing policies across stores, despite standardizing the products included in the comparison.
Price analysis across stores
The comparison shows that some stores adopt an economy pricing strategy, while others target higher-income segments by offering a differentiated shopping experience.
For example:
Lulu, Al Mazraa, and Othaim recorded the lowest grocery basket costs.
Panda, Carrefour, and Danube were among the higher-priced stores in the comparison.
This may reflect differences in marketing strategies, cost structures, and the locations of targeted branches.
Prices across grocery delivery apps
The price monitoring included a comparison of food products across several delivery apps in the Kingdom.
Food Product Prices by Delivery Apps – SAR (February – March 2026)
Product
Ninja
Kmart
HungerStation Market
NaNa
Noon Minutes
Amazon
Careem Market
Fresh Chicken (900 g)
20.75
20.5
25.25
22.25
20.7
20.25
20.5
AlWalimah Rice (5 kg)
51.95
51.95
61.4
50.95
50.65
52.5
50.95
Nadec Milk (1.7 L)
9.5
9.5
9.5
9.5
9.5
9.5
9.5
Goody Tuna (185 g)
9.95
9.25
10.5
9.95
10.75
6
9.95
Afia Corn Oil (1.5 L)
31
31
31.95
31
31
29.56
29.95
Nadec Olive Oil (500 ml)
32.95
32.95
34.95
34.95
41.5
37.99
36.95
Foam White Flour (1 kg)
3.95
3.95
3.5
3.25
3.75
2.95
3.5
Nada Greek Yogurt (160 g)
5.95
5.95
5.95
5.95
5.95
5.95
5.5
Goody Peanut Butter (340 g)
15.95
15.95
17.5
16.75
15.95
12
15.95
Total Grocery Basket
181.95
181
200.5
184.55
189.75
176.7
182.75
The results showed that Amazon recorded the lowest grocery basket cost at around SAR 176.7, while HungerStation market was the highest at SAR 200.5.
The difference between the cheapest and most expensive app is approximately SAR 24 for the same basket.
Apps promote price transparency
The economic analyst Ahmed Alshehri said that the Saudi market is relatively competitive compared to some Gulf countries like Qatar, Bahrain, and Kuwait, pointing out the existence of price gaps between neighboring countries.
Despite taxes, the Saudi market remains a preferred option for purchasing from these countries, especially for certain food products.
He explained that there is intense competition among major market players, with each company focusing on different buyer segments. This competition pressured prices, particularly with the rise of economy-focused stores that operate on lower profit margins and rely on volume sales.
Alshehri emphasized that bulk purchasing and warehouse storage contribute to profit margins, while operational factors play a key role in either improving profits or negatively affecting cost structures.
Pricing strategies are among the most important tools for achieving profit margins, particularly through product classification between necessities and luxuries and display mechanisms inside stores.
Some companies are moving toward manufacturing private-label products at competitive quality levels, reducing prices below mainstream products.
He highlighted the importance of carefully choosing retail locations, adopting pricing policies with fixed margins higher than the market average, reducing inventory size, and targeting specific segments in high-income geographic areas.
He added that apps contributed to market transparency by enabling price comparisons. Customers, especially from the middle class, became more price-sensitive due to awareness and shifting priorities, alongside increased local production, even though these products remain limited compared to the import bill.
