Saudi retail sector sees 9% rise in employee compensation as e-commerce sales grow

Saudi Arabia’s wholesale and retail trade sector recorded a 9% year-on-year increase in employee compensation in the second quarter of 2026, pointing to continued growth in workforce-related spending as activity across the sector expanded.

According to the latest Wholesale and Retail Trade Statistics released by the General Authority for Statistics (GASTAT), the overall operating revenue index increased by 3.2% in Q2 2026 compared with the same period a year earlier. However, the index declined by 0.6% quarter-on-quarter from Q1 2026.

The increase in employee compensation was driven largely by the retail sector, where compensation rose 10.8% compared with the second quarter of 2025. The figures indicate stronger wage and employment-related spending across one of Saudi Arabia’s major consumer-facing sectors.

The sector is also undergoing a continued shift towards digital commerce. The e-commerce sales index rose 9.8% year-on-year in Q2 2026. Retail e-commerce recorded the strongest growth, increasing 13.4%, while wholesale e-commerce sales rose 6.5%. The sale and repair of motor vehicles recorded a 2.4% increase.

Quarter-on-quarter, e-commerce sales also continued to expand, with retail activity rising 1.1%, wholesale sales increasing 0.3% and vehicle sales and repair growing 0.1%.

The growth in digital commerce is reshaping workforce requirements across the retail and wholesale industries, increasing demand for capabilities linked to e-commerce operations, digital sales, logistics, customer service and technology-enabled retail.

Meanwhile, the motor vehicle sales index increased 0.6% year-on-year and 0.9% compared with the previous quarter, suggesting continued activity in the automotive retail segment.

GASTAT said its wholesale and retail trade statistics provide short-term economic indicators for measuring the sector’s performance in Saudi Arabia and are compiled using approved statistical methodologies.