Saudi Arabia's point-of-sale spending reaches USD2.22B despite sectoral drops
Date
6/27/2024 9:25:35 AM
(MENAFN) Saudi Arabia's point-of-sale (POS) spending reached SR8.34 billion (USD2.22 billion) from June 16 to 22, according to data released by the Saudi Central bank (SAMA). The figures reveal that Riyadh, the capital city, accounted for 30.3 percent of this total transaction volume.
The breakdown of POS transactions shows that spending at restaurants and cafes constituted the largest share at 19.31 percent, amounting to SR1.61 billion. This sector experienced a moderate decrease of 20 percent compared to previous periods, marking it as the second smallest decline in spending categories.
Earlier, from May 26 to June 1, POS spending in Saudi Arabia had surged to a record high of SR15.22 billion before beginning to taper off. This decline aligns with the Eid al-Adha holiday period, a time traditionally associated with reduced consumer activity for various reasons, as explained by Talat Hafiz in an interview with a news agency.
Hafiz noted that during Eid holidays, many families stay home or participate in Hajj, diverting their spending habits away from retail and dining out. Consequently, POS transactions, which encompass payments at malls, restaurants, and for various services, tend to decrease during this period compared to normal weeks.
Data from SAMA for the week prior to Eid al-Adha (June 9 to 15) highlighted a notable increase in spending on clothing and footwear, totaling SR1.35 billion, indicating a pattern of heightened consumer activity leading up to and immediately following the holiday period.
Overall, the fluctuations in POS spending reflect seasonal trends in consumer behavior, with peak spending occurring before and after major holidays like Eid, followed by a natural decline during the holiday period itself.
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