Structure of the Iranian retailing industry remains very traditional

Unlike many neighbouring countries that saw a rapid trend of modernisation in the retailing industry, Iran remained very traditional, with a large number of independent outlets. This is mainly a result of limitations on foreign investment, which confines the opportunity for multinationals to enter the market. There is a strong network inside Iran of traditional bazaars that manage and control the distribution of the majority of consumer goods. This network includes key importers and wholesalers, which are still a necessity for the majority of manufacturers due to the high number of outlets and the weak culture of modern shopping (undertaking all grocery shopping at once) among Iranian consumers. Awareness about different brands is still relatively low and shoppers usually consult with independent retailers before choosing a brand, which creates a significant influence among retailers on the sales of all brands.

Chaotic situation in Iranian economy in 2014 has negative impact on the industry

The Iranian economy continued to be under the strong influence of international sanctions in 2014, which hampered the growth of the retailing industry. A high inflation rate, poor GDP growth and unemployment continued to impose pressure on Iranian consumers. Many people with fixed incomes lost their ability to buy a wide range of products. The decline of purchasing power changed the shopping behaviour of consumers in many sectors. Sometimes they eliminated products from their basket and, in case of real need for a product, they reduced their purchasing volume or opted for lower quality but a better price. All of these changes affected retailers as they had to fill their shelves according to the purchasing power of consumers and had to be extra cautious regarding their margins and unit prices. Independent retailers were more vulnerable to the purchasing power decline compared to chained operators, which are benefiting from the fact that many consumers are switching from traditional to modern retailing.

Grocery retailing is headed toward modernisation at a faster rate than non-grocery

The entry of multinational retailer Majid Al Futtaim Hypermarkets LLC at the start of the review period had an impact on modern retailing in the country, especially in the grocery channel. Many consumers discovered the convenience of shopping from modern outlets and became less satisfied with the old independent small grocers. As a result many small grocery outlets converted to supermarkets, although they kept their independent status. Bigger outlets, better product arrangement and better service to consumers were all obvious in the grocery channel during 2014. However, the non-grocery channel did not change to the same degree due to the lack of a strong multinational retailer. The number of non-grocery operators remained high, with no evidence of structural change in the forecast period.

Huge outlet numbers mean considerable fragmentation in the Iranian market

The structure of the retail environment in each Iranian city is similar. There is a district known as a bazaar, where the key wholesalers of each city supply many small independent outlets across the city. These wholesalers get their products from the central bazaar of Tehran, which is located at the heart of the city. This cycle reflects the fact that the impact of chained retailers is still very limited and thus each operator accounts for a tiny proportion of value sales.

Healthy growth, especially for modern retailing channels, is forecast

Despite the fact that retail prices are predicted to continue to increase over the forecast period, total sales are forecast to grow at a healthy value CAGR at constant 2014 prices. Sales growth will be fuelled by factors such as the young population and still relatively high disposable incomes. The emergence of any multinational retailers will further drive growth. On the other hand, growth will continue to be inhibited by the Government’s policies regarding foreign investment and privatisation, as well as international sanctions.


This market research report includes the following:

  • Retailing
    • Store-based Retailing
      • Grocery Retailers
        • Modern Grocery Retailers
          • Convenience Stores
          • Discounters
          • Forecourt Retailers
            • Chained Forecourts
            • Independent Forecourts
          • Hypermarkets
          • Supermarkets
        • Traditional Grocery Retailers
          • Food/Drink/Tobacco Specialists
          • Independent Small Grocers
          • Other Grocery Retailers
      • Non-Grocery Specialists
        • Apparel and Footwear Specialist Retailers
        • Electronics and Appliance Specialist Retailers
        • Health and Beauty Specialist Retailers
          • Beauty Specialist Retailers
          • Chemists/Pharmacies
          • Optical Goods Stores
          • Drugstores/Parapharmacies
          • Other Healthcare Specialist Retailers
        • Home and Garden Specialist Retailers
          • Home Improvement and Gardening Stores
          • Homewares and Home Furnishing Stores
        • Leisure and Personal Goods Specialist Retailers
          • Bags and Luggage Specialist Retailers
          • Jewellery and Watch Specialist Retailers
          • Media Products Stores
          • Pet Shops and Superstores
          • Sports Goods Stores
          • Stationers/Office Supply Stores
          • Traditional Toys and Games Stores
          • Other Leisure and Personal Goods Specialist Retailers
        • Other Non-Grocery Specialists
      • Mixed Retailers
      • Department Stores
      • Mass Merchandisers
      • Variety Stores
      • Warehouse Clubs
    • Luxury Retailing
      • Luxury Department Stores
      • Luxury Apparel and Footwear Specialist Retailers
      • Luxury Jewellery and Watch Specialist Retailers
      • Luxury Bags and Luggage Specialist Retailers
  • Non-Store Retailing
    • Direct Selling
    • Apparel and Footwear Direct Selling
    • Beauty and Personal Care Direct Selling
    • Consumer Electronics Direct Selling
    • Consumer Healthcare Direct Selling
    • Consumer Appliances Direct Selling
    • Food and Drink Direct Selling
    • Home Care Direct Selling
    • Home Improvement and Gardening Direct Selling
    • Housewares and Home Furnishings Direct Selling
    • Media Products Direct Selling
    • Personal Accessories and Eyewear Direct Selling
    • Pet Care Direct Selling
    • Traditional Toys and Games Direct Selling
    • Video Games Hardware Direct Selling
    • Other Direct Selling
  • Homeshopping
    • Apparel and Footwear through Homeshopping
    • Beauty and Personal Care Homeshopping
    • Consumer Appliances Homeshopping
    • Consumer Electronics Homeshopping
    • Consumer Healthcare Homeshopping
    • Food and Drink Homeshopping
    • Home Care Homeshopping
    • Home Improvement and Gardening Homeshopping
    • Housewares and Home Furnishings Homeshopping
    • Media Products Homeshopping
    • Personal Accessories and Eyewear through Homeshopping
    • Pet Care Homeshopping
    • Traditional Toys and Games Homeshopping
    • Video Games Hardware Homeshopping
    • Other Homeshopping
  • Internet Retailing
    • Apparel and Footwear through Internet Retailing
    • Beauty and Personal Care Internet Retailing
    • Consumer Appliances Internet Retailing
    • Consumer Electronics Internet Retailing
    • Consumer Healthcare Internet Retailing
    • Food and Drink Internet Retailing
    • Home Care Internet Retailing
    • Home Improvement and Gardening Internet Retailing
    • Housewares and Home Furnishings Internet Retailing
    • Media Products Internet Retailing
    • Personal Accessories and Eyewear through Internet Retailing
    • Pet Care Internet Retailing
    • Traditional Toys and Games Internet Retailing
    • Video Games Hardware Internet Retailing
    • Other Internet Retailing
  • Vending
    • Packaged Drinks Vending
    • Packaged Foods Vending
    • Personal Hygiene Products Vending
    • Tobacco Products Vending
    • Hot Drinks Vending
    • Traditional Toys and Games Vending
    • Other Products Vending
  • Mobile Internet Retailing


We have all statistics about retail market in Iran. For each category and subcategory you will receive the following data in Excel format:

From Passport

  • Market Sizes
  • Company Shares
  • Brand Shares
  • Employment
  • Grocery vs Non-grocery
  • Taxation
  • Mobile Internet Retailing

Market size details:

  • Retail value retail selling price excl sales tax % growth
  • Retail value retail selling price excl sales tax local currency, USD, EUR, GBP, CHF, JPY
  • Retail value retail selling price excl sales tax per capita local currency, USD, EUR, GBP, CHF, JPY
  • Sites/outlets
  • Sites/outlets % growth
  • Sites/outlets per capita
  • Selling space
  • Selling space % growth
  • Selling space per capita
  • Retail value retail selling price incl sales tax % growth
  • Retail value retail selling price incl sales tax local currency, USD, EUR, GBP, CHF, JPY
  • Retail value retail selling price incl sales tax per capita local currency, USD, EUR, GBP, CHF, JPY