Spinneys Enters Saudi Market, Opens First Store in Riyadh
- Business Companies Regional Retail
Global Business Magazine- 5 minutes read
Spinneys, the leading premium fresh food retailer, on Monday announced the opening of its first store in Saudi Arabia, which is located in the new mixed-use development La Strada Yard in the affluent An Nuzha district of Riyadh.
Spinneys’ entry into Saudi Arabia comes at a time when the Kingdom continues to pursue growth and diversification, supported by ambitious government initiatives including Vision 2030 and upcoming global events such as Riyadh Expo 2030 and the FIFA World Cup 2034.
La Strada Yard is an emerging hub for residential and commercial activities, making it an ideal location for Spinneys’ first-ever opening in the Kingdom. The new 43,520 sft store offers a comprehensive range of premium products, including imported goods, locally sourced items, and branded and private label products.
The La Strada store will feature an extensive selection of bakery, meats and meal solutions that are all produced on-site, with in-house production capability critical to Spinneys’ commitment to the freshness and quality that it is known for in the UAE and Oman.
By establishing local production capabilities in Saudi Arabia, Spinneys aims to drive economies of scale, a key component of 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.
Spinneys CEO Sunil Kumar said that their entry into Saudi Arabia is a historic moment for a home grown UAE brand, which is driven by strong demand and positive market fundamentals and bolstered by the transformative Saudi Vision 2030, which has created an ideal environment for retail sector growth.
He added: “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 has a well-advanced store pipeline, with further openings planned in Riyadh and Jeddah, the Kingdom’s most affluent and populous cities. The company plans to open up to 12 new stores in Saudi Arabia by 2028.
Whitespace Opportunity
The “whitespace” opportunity in Saudi Arabia offers a unique opportunity for Spinneys’ international expansion, with whitespace in the Kingdom projected to increase to 86 million sft by 2033, equivalent to nearly 1,200 Spinneys stores.
Growth in whitespace in the Saudi market is supported by structural tailwinds including a projected 6.4% CAGR in the Kingdom’s affluent population between 2022 and 2028.
The government aims to increase the expatriate population to 50% by 2030, boost household incomes and drive consumer spending. These changes create an ideal environment for expansion of the retail sector, and Spinneys is well-positioned to capitalise by bringing its unique high-quality and fresh offering to the Saudi market.
The La Strada Yard store will mirror the product mix and high standards that Spinneys is known for across its other locations, ensuring that customers in Saudi Arabia enjoy the same quality and variety.
Located just off King Abdullah Road, the La Strada store is easily accessible from all directions, with plentiful parking available for all customers.
Spinneys remains focused on strategic growth by enhancing its offering and expanding its reach. This includes store expansion; increased private label penetration; The Kitchen by Spinneys, a standalone food hall concept that recently opened its first location at Dubai Mall; and e-commerce penetration, with hyperlocal delivery platform Spinneys Swift currently rolling out across the UAE. Spinneys’ online channel will launch in Saudi Arabia shortly after the opening of the La Strada Yard store.
