Saudi Arabia Bans Key Items at Small Stores in Major Retail Shake-Up | WION

Summary

Saudi Arabia is shaking up its retail landscape with new regulations targeting small stores, known as bakalas. These stores are now prohibited from selling certain items like tobacco, fruits, vegetables, and electronic cigarettes, as part of an effort to improve public health and product handling. The new rules set floor space requirements for grocery stores, supermarkets, and hypermarkets, with only supermarkets authorized to sell meat. Retailers must upgrade store sizes to comply, impacting inventory and convenience. Consumers may face reduced convenience at smaller shops but benefit from better food safety and quality at larger licensed outlets.

Takeaways

• 😀 Saudi Arabia is introducing new retail rules targeting small stores known as bakalas.
• 😀 Bakalas will no longer be allowed to sell tobacco products, electronic cigarettes, fruits, vegetables, and dates.
• 😀 The new regulations aim to improve public health and product handling standards.
• 😀 A six-month grace period has been given for stores to comply with the new rules.
• 😀 Retail outlets will be classified by floor space: grocery stores must be at least 24 sqm, supermarkets 100 sqm, and hypermarkets 500 sqm.
• 😀 Only supermarkets can sell meat, and they will need a separate license to do so.
• 😀 Hypermarkets are allowed to sell all restricted items without additional permits.
• 😀 Smaller shops can still sell low-risk items like chargers and prepaid cards.
• 😀 The new regulations are expected to affect thousands of bakalas that rely on fresh produce and tobacco sales.
• 😀 Consumers may experience less convenience at neighborhood shops, but could see better food safety and product quality in licensed large outlets.

Q & A

What new retail rules have been introduced in Saudi Arabia?

Saudi Arabia has introduced new retail rules that prohibit small stores, known as bakalas, from selling items like tobacco products, electronic cigarettes, fruits, vegetables, and even dates. This is part of a move to improve public health and ensure better product handling and storage.

What is the rationale behind banning certain products in bakalas?

The ban aims to improve public health standards, ensuring better storage and handling of products. It is also intended to ensure that products sold in retail outlets meet safety and quality standards.

How will the new retail regulations affect store classifications?

Under the new guidelines, retail outlets are classified by floor space. Grocery stores must be at least 24 square meters, supermarkets must cover at least 100 square meters, and hypermarkets need a minimum of 500 square meters.

What specific products can only be sold by supermarkets under the new rules?

Only supermarkets are allowed to sell meat, but they require a separate license to do so. Hypermarkets can sell all restricted items without additional permits.

What are smaller stores allowed to sell under the new guidelines?

Smaller stores, or bakalas, are still allowed to sell low-risk items such as charger cables and prepaid cards.

How will the new rules impact consumers and retailers?

For consumers, the new rules may reduce convenience at neighborhood shops but could lead to improved food safety and product quality at larger licensed outlets. Retailers will need to reassess their inventory and possibly upgrade their store sizes to comply with the new regulations.

What are the penalties for not complying with the new regulations?

Retailers who do not comply with the new rules may face penalties, including fines or closures. Enforcement teams will monitor compliance during the transition period.

How long is the grace period for existing stores to comply with the new regulations?

A six-month grace period has been granted to allow existing stores time to comply with the new retail rules.

What additional health-related mandates have been introduced in Saudi Arabia?

The Saudi Food and Drug Authority has mandated that nutritional disclosures be provided on menus, including calorie counts and labels for sugar, salt, and caffeine content.

What will retailers need to do to meet the new store size requirements?

Retailers may need to upgrade their stores to meet the minimum size requirements to qualify as supermarkets or hypermarkets, in line with the new guidelines on floor space.