How does the customer experience in Saudi Arabia's luxury stores influence consumer behavior to shop at other branches in Europe?

Abstract

Saudi Arabia, the largest economy in the MENA region, has experienced rapid economic and social transformation, with a growing young and affluent population that is increasingly influencing luxury consumption patterns. Despite the expansion of luxury retail options within the country, many Saudi consumers continue to prefer shopping abroad, particularly in Europe, where high-end brands and exceptional shopping experiences are deeply ingrained in the cultural fabric. This study examines why Saudi consumers favor international luxury shopping despite the rise in local options. Using a mixed-method approach, combining surveys and focus groups with frequent luxury shoppers, the research identifies the key factors influencing their purchasing behavior and highlights gaps in Saudi Arabia’s luxury retail market. The findings aim to provide insights into consumer expectations, focusing on aspects such as product availability, pricing disparities, customer service, and in-store experience. By understanding these factors, the study seeks to align the local luxury shopping experience with the evolving needs of Saudi consumers, thereby contributing to the country’s broader goals under Vision 2030 to retain more luxury spending within its borders. The results will offer valuable recommendations for luxury brands and retailers to enhance their offerings and capture a larger share of the domestic luxury market.