GCC QSR, Grocery and Online Delivery Platforms: QSR and Online grocery to lead growth

Grocery retail to show muted growth on the back of subdued consumer sentiments. We expect grocery retailers to report muted growth (low- to mid-single digit) this quarter on the back of subdued consumer sentiment, increased competition from online aggregator platforms and new off-line formats (discounters and convenience stores) along with traditional brick-and-mortar retailers. We believe UAE will continue to outperform vs. KSA and rest of the GCC on the back of strong consumer demand and recovery in tourism during the quarter. Food category should remain healthy but Non-Food category to see weakness owing to increasing inflationary cost pass-through, while e-commerce remains a bright spot with strong double-digit growth. QSR segment to continue reporting healthy LFL sales growth, with mid-high-single-digit LFL growth backed by transaction growth, though cheque growth remains muted;