Mena ecommerce up 44% in November

• 5% growth in orders in 2024
• Kuwait tops order value
• Physical shop ‘still essential’

Ecommerce in the Middle East and North Africa enjoyed a prosperous November with sales 44 percent higher than the year’s monthly average.

Online transactions in 2024 were healthy as a whole, with 5 percent growth on the previous 12 months.

Unsurprisingly Black Friday, the global marketing ploy that businesses use to offer big discounts, was the busiest shopping day of the year in many places. The approaching holiday season also pushed sales up.

A study by marketing platform Admitad from Dubai and the gifting marketplace Flowwow revealed that the average ecommerce order in the Mena region was highest in Kuwait at $127, followed by the UAE ($102), Egypt ($74), Saudi Arabia ($52) and Qatar ($50).

Ecommerce and the quick commerce sector – where products are generally delivered within the hour – were up 26 percent over the past three months compared with last year.

David Cantatore, retail lead at NielsenIQ Middle East, said bricks-and-mortar stores remain crucial but “this trend suggests significant potential for further market entrants”.

Online sales at Landmark Retail, the $7 billion Dubai-headquartered retail conglomerate with brands including Babyshop, Max Fashion, Shoexpress and Home Centre, contribute one fifth of the company’s annual revenue.

Kabir Lumba, the company’s CEO, said this side of the business is growing by more than 20 percent per year thanks to investment in its supply chain and expanding its logistics operation. It now boasts 35 distribution centres across the GCC.

A blend of physical shops and ecommerce are essential for success, Joe Abi Akl, a partner at Oliver Wyman, said.

“If you’re purely an online player, it’s becoming more and more difficult to cut through the clutter and to create awareness and visibility in front of customers,” Abi Akl said. 

“If you’re purely offline, you’re missing out on a huge chunk of people who want the convenience of being able to shop at home. The right way to go is to be a true omnichannel, fully integrated and fully seamless [retailer].”