Retail

Spinneys targets expansion in UAE and Saudi Arabia

By Pramod Kumar

May 13, 2025, 10:15 AM

Spinneys said transaction volume rose by 7.8 percent year on year to 9.9 million, indicating surging customer demand

10 new stores planned this year
Q1 revenue and profits increase
Average customer spend up

Supermarket operator Spinneys plans to expand its network further in the UAE and Saudi Arabia this year as online sales and a bigger spend per customer drove revenue in the first quarter of the year.

The top line rose 11.3 percent year on year to AED906 million ($247 million) in the first three months of 2025. Like-for-like sales grew 6.7 percent as 10 new stores were opened in the UAE and Saudi Arabia since April 2024.

Fresh and private label sales increased, as online sales penetration rose to 15.6 percent during the quarter, compared to 13.7 percent a year ago.

Net profit increased by 14 percent year on year to AED85 million. Profit margin rose marginally to 9.4 percent during the quarter from 9.2 percent a year earlier.

Transaction volume rose by 7.8 percent year on year to 9.9 million, indicating surging customer demand amid economic growth.

The average basket size increased to AED92 in the first quarter compared to AED89 a year ago.

Spinneys maintains a positive outlook for the year, expecting to open 10 to 12 new stores across the UAE and Saudi Arabia by the end of the year.

Annual revenue growth is forecast to be between 9 and 11 percent, driven by new store openings and like-for-like sales growth of 4-6 percent.

Customer growth is being driven by an expanding segment of affluent customers in the UAE particularly, Sunil Kumar, CEO of Spinneys, told AGBI.

“That growing affluent base is coming to us for our fresh food options – 63 percent of sales is fresh food and this is a daily transaction, it’s not a once a month or fortnightly grocery/larder shop. And they are happy to come and shop with a smaller basket size, more frequently.”

The launch of the company’s new ‘grocerant’ retail concept – Kitchen by Spinneys – has been another key driver of growth and it is a “high margin offering”, Kumar said.

Spinney’s listed on the Dubai Financial Market in May 2024. It’s share price was AED1.50 on Monday, down nearly 7 percent since the start of the year.