Retail business sector, which dominates the distribution sector, is very fragmented in Iran. Iranian chain stores have a 120-trillion-rial ($3.2 billion) share of the country’s 1.3-quadrillion-rial ($34.6 billion) retail market, according to the National Union of Chain Stores. The current 9.2% share has been steadily on the rise in recent years, as it stood at 3% five years ago and increased to 7% in 2017. Retail business mainly related to food products is primarily carried out by traditional businesses (bazaars, stalls, mini-markets). Fruits and vegetables as well as the bakery products are widely distributed through this type of traditional business. Close to 1.8 million retail outlets are operating across the country, that is one for every 44 Iranians.
Average and mass distribution have fully developed. However, retail business and mass distribution are more and more linked with groups which provide logistics between Iranian and foreign companies (sometimes representing them) and distribution chains.
In Iran, online retailing currently has a 0.7% share in the country’s retail market and it is predicted to reach 3% by 2020. However, things have changed now and people shopping online are rapidly growing. Online shopping has become the mainstay of Iranian Internet users whose population adds up to 45 million. The tendency to shop online, especially among the young people, is growing noticeably. Online purchases in Iran have an annual growth rate of 60%. E-commerce companies such as Digikala, Bamilo, Zanbil, Modiseh, Chare, Tehrankala, Shixon, Kimia Online, Final and Albasco are some of the biggest names in the field, offering a variety of products to customers across the country. Unofficial statistics suggest that Digikala is the leading online store with a 75% share in Iran’s online retailing, followed by Bamilo with close to 15%. The remaining 10% is divided among other online stores.
Market share
Retail business sector represented nearly 80% of the turnover of the distribution sector in the country.
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Iran: Compra i venda
