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Spinneys expands regional footprint with new store in Riyadh

The supermarket chain plans to expand its presence in Saudi Arabia, with up to 12 new stores scheduled to open in the kingdom by 2028

by Kudakwashe Muzoriwa

June 24, 2024

A photo of Spinneys' first Riyadh store. (Credit: Supplied)

Supermarket chain Spinneys 1961 Holding has opened its first store in the affluent An Nuzha district of Riyadh, marking its expansion into Saudi Arabia.

The new store is located in the new mixed-use development La Strada Yard and offers an in-house production capability that will also serve other Spinneys stores opening in Riyadh this year. The store provides a wide range of premium products, including imported goods, locally sourced items, and branded and private-label products.

Spinneys plans to grow its presence in Saudi Arabia, with further openings planned in Riyadh and Jeddah. The company expects to open as many as 12 new stores in Saudi Arabia by 2028.

The grocery chain’s entry into Saudi Arabia aligns with the kingdom’s pursuit of growth and diversification, supported by initiatives such as Vision 2030 and upcoming global events such as the Riyadh Expo 2030 and the FIFA World Cup 2034.

“Our entry into Saudi Arabia is a strategic move, bolstered by the transformative Saudi Vision 2030, which has created an ideal environment for robust growth in the retail sector,” explained Sunil Kumar, CEO of Spinneys.

Guests at the opening of Spinneys' first Riyadh store. (Supplied) — Guests at the opening of Spinneys’ first Riyadh store. (Supplied)

Spinneys aims to leverage Saudi Arabia’s vision of increasing the expatriate population to 50% and driving consumer spending by 2030. This is expected to create an ideal environment for the expansion of the retail sector in the kingdom.

The company’s quarterly net profit rose by 12.8 per cent year-on-year (YoY) to Dhs75m with a net profit margin of 9.2 per cent, a 20 basis point improvement from a year ago. Its revenue in the three months to March 31 jumped by 10.9 per cent YoY to reach Dhs815m, supported by an increase in retail revenue, with transactions remaining healthy, up by 9.5 per cent.

Spinneys plans to open as many as 12 new stores in Saudi Arabia by 2028. (Supplied)

Spinneys’ $375m initial public offering (IPO) on the Dubai Financial Market attracted $19bn in investor orders. The listing attracted two cornerstone investors in Emirates International Investment Company, the strategic investment arm of Abu Dhabi-based National Holding, and Franklin Templeton.

Cornerstone investors committed to taking up an aggregate of $75m in the offering.