He emphasized the need to distinguish between real demand and limited indicators of commercial activity, clarifying that some cases of activity observed in well-known stores or brands cannot be generalized as an indicator of the performance of the entire sector or taken as a criterion for measuring market movement comprehensively.
He confirmed that the sector is witnessing a noticeable decline in commercial activity and demand levels with the end of the summer season, after a period of activity that extended from the end of May to the end of August.
He attributed this to the end of wedding, graduation, wedding, festival, and various event seasons, which directly affected commercial activity, especially in popular restaurants, coinciding with a decline in purchasing power and the return of families to school and university commitments, and the associated increase in family expenses and reduced spending on restaurants and meals outside the home.
He added that the return of expatriates to their places of residence outside the Kingdom also contributes to the decrease in demand compared to the summer period, which usually witnesses more active consumer movement.
He pointed out that another challenge facing the sector is the continued rise in production costs and inputs, especially the prices of meat, some types of cheese, and other essential materials used in the production process, which puts pressure on the operating costs of establishments.
He noted that part of these increases is affected by the political disturbances and crises witnessed by regional and international markets, and their consequent effects on supply, transportation, and prices.
Al-Awad emphasized that the current picture of the sector requires a balanced reading, explaining that the decline in commercial activity does not mean a crisis in the availability of goods or a shortage in supply, but is largely linked to changes in consumer behavior after the end of the summer season, reduced spending related to events, and increased family obligations, along with the continued pressures imposed by production costs.
The number of establishments operating in the sector is about 20,000, employing about 400,000 workers.
