Spinneys plans to increase its footprint in the UAE and Saudi Arabia – Latest Updates

Spinneys, a popular supermarket chain in the UAE and Oman, is set to expand its presence in the region following a successful initial public offering (IPO) and listing on the Dubai Financial Market. The company’s CEO, Sunil Kumar, shared insights into the future plans and strategies for growth in an exclusive interview with Khaleej Times.

With a network of 75 premium grocery retail supermarkets under the Spinneys, Waitrose, and Al Fair brands, Spinneys has established a strong foothold in the UAE and Oman. The company is now looking to capitalize on the growing demand for retail products by expanding its footprint in the UAE and Saudi Arabia.

“We have identified multiple avenues to accelerate the profitable growth of our business through our network of stores and broader omni-channel platform,” said Sunil Kumar. He highlighted the focus on like-for-like growth for existing stores, driven by market growth and an increase in Spinneys’ offerings, private label brands, and e-commerce penetration.

In addition to expanding within the UAE, Spinneys is eyeing further growth opportunities in Saudi Arabia. The introduction of The Kitchen, an innovative concept, in 2024, along with operational efficiencies and supply chain improvements, are expected to benefit the company in its expansion plans.

Kumar emphasized the significant whitespace opportunity in both the UAE and Saudi Arabia, pointing to the projected growth in retail space in these markets. In the UAE alone, whitespace is expected to grow at a compound annual growth rate (CAGR) of 2.2%, presenting a substantial opportunity for Spinneys to expand its store network.

Moreover, in Saudi Arabia, the whitespace opportunity is even more compelling, with a projected CAGR of 2.8% to 2028. Kumar noted that while it may not be possible to occupy all available whitespace, the growth potential for Spinneys in these markets is substantial.

Addressing the challenges facing the retail industry, Kumar highlighted Spinneys’ ability to navigate consumer cost-of-living concerns and supply chain disruptions. The company’s strong vertically-integrated supply chain and global sourcing model have enabled it to maintain high on-shelf availability, even during challenging times like the Covid-19 pandemic.

Spinneys’ recent listing on the Dubai Financial Market has generated significant interest from investors, with the IPO being oversubscribed 64 times. The company plans to pay dividends on a semi-annual basis starting from fiscal year 2024, reflecting its commitment to long-term growth and shareholder value.

Overall, Spinneys’ expansion plans in the UAE and Saudi Arabia reflect its confidence in the region’s retail market and its commitment to providing premium fresh food offerings to customers. With a strong strategic vision and a focus on innovation, Spinneys is poised for continued success in the competitive retail landscape.