UAE's Spinneys Opens Its First Store In Riyadh, Saudi Arabia

Spinneys, UAE's premium fresh food retailer with stores in Dubai, Abu Dhabi, Al Ain and Fujairah, has opened its first store in Saudi Arabia. This new store is located in La Strada Yard, a mixed-use development in the affluent An Nuzha district of Riyadh. The area is becoming a hub for both residential and commercial activities, making it an ideal spot for Spinneys' debut in the Kingdom.

The new store spans 43,520 sq.ft. and offers a wide range of premium products. These include imported goods, locally sourced items, and both branded and private label products. The La Strada Yard store will feature an extensive selection of bakery items, meats, and meal solutions produced on-site. This in-house production capability is crucial to maintaining the freshness and quality Spinneys is known for in the UAE and Oman.

Image Courtesy: Spinneys

By establishing local production capabilities in Saudi Arabia, Spinneys aims to drive economies of scale. This approach is key to its fresh food proposition and margin profile. The production facilities at La Strada will also serve other Spinneys stores scheduled to open in Riyadh this year.

Sunil Kumar, CEO of Spinneys, stated: "We are delighted to be launching our unique premium offering in Saudi Arabia, a rapidly growing market with a diverse consumer base and a keen appetite for fresh, high-quality products. 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. 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."

Future Expansion Plans

Spinneys has ambitious plans for further expansion in Saudi Arabia. The company expects to open up to 12 new stores by 2028 in Riyadh and Jeddah, the Kingdom's most affluent cities. The "whitespace" opportunity in Saudi Arabia is significant, with projections indicating an increase to 86 million sq.ft. by 2033. This growth is equivalent to nearly 1,200 Spinneys stores.

The Kingdom's affluent population is projected to grow at a CAGR of 6.4% between 2022 and 2028. This structural tailwind supports the expansion of retail spaces like Spinneys. The entry into Saudi Arabia aligns with the Kingdom's ongoing growth and diversification efforts supported by Vision 2030.

The La Strada Yard store will maintain the high standards that Spinneys' customers expect. Located just off King Abdullah Road, it is easily accessible from all directions with ample parking available. Spinneys remains focused on strategic growth through store expansion and increased private label penetration.

The Kitchen by Spinneys, a standalone food hall concept, recently opened its first location at Dubai Mall. Additionally, Spinneys Swift, their hyperlocal delivery platform, is rolling out across the UAE. The online channel for Spinneys will launch in Saudi Arabia shortly after the opening of the La Strada Yard store.

Saudi Arabia's government initiatives like Vision 2030 aim to increase the expatriate population to 50% by 2030. These initiatives also aim to boost household incomes and drive consumer spending. Upcoming global events such as Riyadh Expo 2030 and FIFA World Cup 2034 further support these goals.