Kuwait Retail Industry

"The retail sector in Kuwait has experienced a significant growth, mainly during FY 2007-2008, as a result of the strong demand by youth and the rich population. In addition, the development and expansions of shopping malls along with the entrance of 29 international retailers during FY 2008 supported the growth in this sector. According to Kuwait business intelligence report issued in June 2010, around 60% of Kuwait’s population is under the age of 25, and is rising at 3% annually. As per Meed, it is predicted that by the end of FY 2029, the population will increase to 5.40 mn. Hence, the demand is more likely to be affected by the local population The financial crisis has negatively affected the economies of the GCC region. Despite that, in FY 2008 the retail sector maintained a healthy average revenue growth of 17.90% on an annual basis (source: Alpen Capital). The financial crisis has more severe effect on the luxury goods retailers as consumers became more conscious in term of expenses. The performance of non-discretionary goods retailers continued to remain resilient."