Despite an overall 8.1% drop in consumer spending compared to the previous week, key sectors, particularly food and dining, continued to show strong performance, according to data from the Saudi Central Bank (SAMA).

The overall decline in spending can be attributed to the timing of salary payments, typically made on the 27th of each month, which leads to lower spending in the weeks leading up to it. Additionally, the winter holiday season, when many expatriates travel home, further contributed to the decrease in domestic spending across the Kingdom.

Other sectors experienced smaller reductions. Clothing and footwear transactions fell by 5.2%, totaling $230.78 million, while the construction and building materials sector saw a minor 0.9% decrease, resulting in a $94.68 million drop. The electronics sector experienced an 8.7% weekly decline, and gas stations and health-related sales saw reductions of 9.4% and 7.3%, respectively.

Jewelry sales recorded a 14.4% decline in transaction volumes, with a slight 3.9% decrease in value. Miscellaneous goods and services also saw a 9.1% drop in sales, totaling $373.38 million.

Regionally, Riyadh remained the largest market with a point-of-sale value of $1.12 billion, although this was a 6% decrease from the previous week in December. Jeddah saw a 7.5% drop to $426.72 million, while Dammam recorded a slight 3.6% decrease to $164.93 million.

Shoppers in the Middle East are becoming increasingly conscious of their spending patterns, and this directly reflects the changing consumer patterns that dominate retail in the Kingdom and the GCC at large. The food and beverages sector continues to hold its coveted position at the top while driving holiday retail purchases in adjacent sectors.