Grocery basket price gap across retailers hits 20%; apps boost price transparency

Comparison of grocery basket across stores

Argaam tracked the prices of several key staple food items in retail stores from February to March 2026, standardizing products and sizes to ensure an accurate comparison.

The results showed a noticeable variation in the cost of the grocery basket between stores.

Comparison of Food Product Prices by Store – SAR (February – March 2026)

*Prices do not include discounts.

Lulu recorded the lowest grocery basket cost at around SAR 471, while Panda was the most expensive store at about SAR 564.

The difference between the two stores is SAR 93, equivalent to approximately 20% of the lowest basket value.

This variation reflects differences in pricing policies across stores, despite standardizing the products included in the comparison.

Price analysis across stores

The comparison shows that some stores adopt an economy pricing strategy, while others target higher-income segments by offering a differentiated shopping experience.

For example:

Lulu, Al Mazraa, and Othaim recorded the lowest grocery basket costs.

Panda, Carrefour, and Danube were among the higher-priced stores in the comparison.

This may reflect differences in marketing strategies, cost structures, and the locations of targeted branches.

Prices across grocery delivery apps

The price monitoring included a comparison of food products across several delivery apps in the Kingdom.

Food Product Prices by Delivery Apps – SAR (February – March 2026)

The results showed that Amazon recorded the lowest grocery basket cost at around SAR 176.7, while HungerStation Market was the highest at SAR 200.5.

The difference between the cheapest and most expensive app is approximately SAR 24 for the same basket.

Apps promote price transparency

Economic analyst Ahmed Alshehri said the Saudi market is relatively more competitive than some Gulf countries, such as Qatar, Bahrain, and Kuwait, noting price gaps between neighboring countries.

Despite taxes, the Saudi market remains a preferred option for purchasing from these countries, especially for certain food products.

He explained that there is intense competition among major market players, with each company focusing on different buyer segments. This competition pressured prices, particularly with the rise of economy-focused stores that operate on lower profit margins and rely on volume sales.

Alshehri emphasized that bulk purchasing and warehouse storage contribute to profit margins, while operational factors play a key role in either improving profits or negatively affecting cost structures.

Pricing strategies are among the most important tools for achieving profit margins, particularly through product classification between necessities and luxuries and display mechanisms inside stores.

Some companies are moving toward manufacturing private-label products at competitive quality levels, thereby reducing prices below those of mainstream products.

He highlighted the importance of carefully selecting retail locations, adopting pricing policies with fixed margins above the market average, reducing inventory size, and targeting specific segments in high-income geographic areas.

Alshehri added that apps contributed to market transparency by enabling price comparisons. Customers, especially middle-class consumers, became more price-sensitive due to greater awareness and shifting priorities, alongside increased local production, even though these products remain limited relative to the import bill.