Spinneys, a DFM-listed company, had a main expansion strategy that included entering Saudi Arabia. Spinneys, a Dubai-based supermarket chain, has achieved a significant milestone by opening its first shop in Saudi Arabia.

This development is expected to boost the company’s medium-term growth prospects. It was also a significant promise made by the store during its initial public offering and subsequent listing on the DFM earlier this year.

“Our entry into Saudi Arabia – a historic moment for a homegrown UAE brand – is driven by strong demand and positive market fundamentals, bolstered by the transformative Saudi Vision 2030, which has created an ideal environment for retail sector growth,” said Sunil Kumar, the company’s CEO.

“Our track record in the GCC, coupled with best-in-class insights and partnerships in the Kingdom, give us a robust platform and we look forward to becoming a trusted name in the market.”
Spinneys plans to open four stores in Saudi Arabia by the end of 2024, with the first in Al Nuzha, Riyadh.

The 43,520-square-foot store sells quality products such as imported goods, locally obtained things, and a variety of branded and private-label products. Spinneys produces pastries, meats, and meal solutions on-site, much as it does throughout the UAE and Oman.

This meets the supply demands of the La Strada shop and planned Spinneys locations in Riyadh, allowing for economies of scale and reinforcing the retailer’s commitment to fresh food products and profitability.

Spinneys plans to open three more locations in Riyadh and Jeddah in 2024, bringing the total to 12 in Saudi Arabia by 2028. Spinneys is seizing the ‘whitespace‘ opportunity in Saudi Arabia. The whitespace is predicted to grow to 86 million square feet by 2033, which is equivalent to roughly 1,200 Spinneys stores. Supported by structural tailwinds, the affluent population is expected to rise at a 6.4 percent CAGR between 2022 and 2028.

Spinneys’ growth strategy is in line with the Kingdom’s retail expansion, which is being propelled by projects like Vision 2030 and impending global events like Riyadh Expo 2030 and the FIFA World Cup 2034. The government’s goal of increasing the expatriate population to 50% by 2030, together with initiatives to enhance household incomes and consumer spending, helps Spinneys grow.

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