Spinneys Makes Grand Entrance into Saudi Arabia with Debut Store in Riyadh
Dubai-based supermarket chain Spinneys has officially entered the Saudi Arabian market with the opening of its first store in Riyadh’s La Strada Yard. The flagship outlet, spanning 43,520 sq. ft., is the beginning of Spinneys’ strategic expansion plan in Riyadh and Jeddah to meet the growing demand for high-quality grocery options across the Kingdom.
Premium Shopping Experience
The new store aims to provide a premium shopping experience by offering a wide range of imported goods, locally sourced products, international brands, and an exclusive private label selection. The company’s recent oversubscribed initial public offering on the Dubai Financial Market has fueled its expansion into Saudi Arabia.
Expanding Footprint in Saudi Arabia
CEO Sunil Kumar expressed the company’s ambitions in the Kingdom, emphasizing the massive whitespace opportunity in Saudi Arabia’s grocery market. Spinneys aims to establish itself as the leading premium grocer in the region by offering a differentiated shopping experience focusing on fresh food, convenience, and exceptional service.
Growth Strategy
With plans to open three additional locations in Riyadh and Jeddah by year-end, Spinneys is positioning itself to operate up to 12 stores in Saudi Arabia by 2028. The company’s next project after the flagship store in Riyadh is an 11,636 sq. ft. store in the King Abdullah Financial District. Additionally, Spinneys is targeting the opening of 25 new stores in the UAE between 2024 and 2028.
Market Expansion and Localization
Spinneys aims to establish a strong presence in Riyadh and Jeddah, focusing on affluent and populous cities in Saudi Arabia. The company has conducted extensive market research to understand unique Saudi preferences, behaviors, and cultural traditions, ensuring a localized shopping experience that combines global sourcing with authentic local flair.
Supply Chain Innovation
Recognizing the importance of a robust supply chain infrastructure, Spinneys plans to leverage its vertically integrated sourcing model to optimize its supply chain and reduce food miles. The company’s in-house production facilities at La Strada will enhance its fresh food offerings and profitability while maintaining exceptional freshness and quality standards.
Seizing White Space Opportunity
Spinneys sees a significant white space opportunity in the Saudi grocery market, driven by a growing affluent population and favorable economic trends. The company aims to capitalize on this opportunity by offering a premium grocery experience that caters to the evolving needs of Saudi consumers.