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Our Business

Our brand

Spinneys is a long-standing brand with a strong heritage in the UAE. Throughout its history, Spinneys has earned a reputation for premium quality, by consistently prioritising high standards in customer service, freshness and food safety.

Who we are

Spinneys has evolved and grown over the decades to become an operator of 75 premium grocery retail stores under three brands in the UAE and Oman: “Spinneys”, “Waitrose” and “Al Fair”. Spinneys’ first store in Saudi Arabia is set to open its doors in Riyadh in Q2 2024, with three more stores targeted to open in the Kingdom in 2024.

Our Purpose

Our entire team is committed to our vision “not to be the biggest, but to be the best retailer”. Our mission is “to nourish and inspire our communities to live better lives, day-by-day”. We do this by offering high quality food solutions that promote heathy and sustainable living.”

Our place in the community

We believe in playing an active and supportive role in the neighbourhoods we serve, continuously engaging with the local community through family focused events and initiatives such as the annual Spinneys Cycle Challenge and the Spinneys Family Run series.

Message from the CEO

“Spinneys has grown to become one of the leading fresh-focused food retailers of scale, operating across 75 locations in the UAE and Oman, and entering the attractive Saudi market in 2024. We provide our customers with an extensive fresh food range and exceptional customer service through an omni-channel platform.

Going forward, Spinneys is well-positioned to capitalise on the robust economic landscape of the UAE, supported by positive economic conditions and the expected growth of the wider GCC’s affluent population over the coming years.

We are excited to be entering our next phase of growth, with the Spinneys brand set to benefit from key strategic growth levers, including significant white space opportunities in both the UAE and Saudi Arabia, new capabilities and the introduction of new store formats.”

Mr. Sunil Kumar Chief Executive Officer

Facts and Figures

stores

Operated in the UAE and Oman
(incl. Spinneys, Waitrose and Al Fair)

AEDbn

Revenue
(+9.2% YoY)

%

Online sales

AEDM

EBITDA
(19.6% margin)

AEDm

Profit for the year
(+18.7% YoY)

AEDm

Dividend
(77.7% payout ratio)

AEDbn

Target market in core geographies

%

Share of target market in Dubai

All figures are for FY 2023

Investment Highlights

One of the leading premium food retailers operating in an attractive region

Spinneys is well-positioned to capitalise on the robust economic landscape of the UAE, where the economy is expected to grow at a CAGR of 3.4% from 2022 to 2028, and where there is an affluent population expected to grow at a CAGR of 4.3% over the same period.
The Group is planning to expand into Saudi Arabia in 2024, the GCC’s largest economy, where the economy is expected to grow at a CAGR of 3.2% from 2022 to 2028. Spinneys will focus on store openings in Jeddah and Riyadh, the Kingdom’s most populous cities, where affluent population growth is projected at a CAGR of 6.4% over the same period.
Spinneys’ target market in the grocery retail segment is outpacing overall grocery market growth and is projected to grow at a CAGR of 4.4% from 2022-2028 in the UAE and a CAGR of 6.7% in the Saudi cities of Riyadh and Jeddah.

Spinneys held a 12% share of its target market in the UAE and 27% share of its target market in Dubai, in 2022. As at year-end 2023, 46 of Spinneys’ stores were in Dubai, solidifying its position as one of the leading premium grocery retailers in its home market and presenting an opportunity to further capture its target market through expansion. Spinneys’ is one of the leading premium grocery retailers in the UAE and has been recognised by multiple industry bodies, having been awarded the BBC Good Food Supermarket of the Year for 2021, the RetailME Responsible Retailer of the Year for 2022 and the Signal Global Podcast Awards Bronze for Nourish, the Spinneys podcast, in 2023.

The Spinneys value proposition emphasises high-quality fresh products, with 85% of revenue in 2023 relating to food. Exclusive private labels, SpinneysFOOD, SpinneysHOME, SpinneysWELLNESS and Fine Food, as well as Waitrose private label products, are a significant competitive advantage. On average, more than 7,200 SKUs were sold by Spinneys under its own private label and the Waitrose private label in 2023. Private label products are targeted to be at least 10% cheaper for customers than branded alternatives. In 2023, the Group had 3,948 brand relationships. Of the top 100, 78% were with international brands including Cadbury, Nivea and Chiquita. Spinneys also negotiates exclusive rights with brands, for limited-term periods, and has done so with brands including Heineken 0% beverages, Warburtons bread and Rude Health. Spinneys’ omni-channel platform is built for customer convenience, with flexible store formats in a wide range of location types to maximise ease and accessibility. The Group has invested in its e-commerce capabilities, including proprietary online platforms and apps for both Spinneys and Waitrose, as well as selling through aggregators including InstaShop, NowNow, Talabat and Deliveroo.

Spinneys’ success is grounded in the strength of its global sourcing network and its vertically integrated operational and supply chain capabilities, a fully integrated model that is hard to replicate. The Group has over 870 suppliers in 44 countries, facilitated through subsidiaries in the USA, UK and Australia, enabling a highly efficient supply chain that minimises wastage while maintaining strong on-shelf availability. Even during the Covid-19 pandemic, Spinneys maintained on-shelf availability between 84% and 94% through 2020 and 2021. In addition, Spinneys operates two centralised production facilities in the UAE, together delivering c.1,500 SKUs daily. The Group benefits from a long-standing employee base, with c.22% of full-time employees having a tenure of over 10 years as at year-end 2023. Each of these factors contributed to the Group having an average Retail Revenue per GSA of AED 3,500 per sq.ft. in 2022, compared to a UAE market average in 2022 of AED 1,600 per sq.ft..

Spinneys has a robust historical growth profile. Revenue in 2023 grew to AED 2.87 billion, at a CAGR of 8.2% from 2019 through 2023, primarily driven by increasing Online Penetration, increasing Private Label penetration, and increasing numbers of Stores in Dubai, and the UAE more broadly. Improved resource utilisation and revenue efficiency, growth in the number of yearly transactions, supply chain capabilities and consistent product availability, and solid profitability and margins have all contributed to Spinneys’ growth. Spinneys’ gross profit margin grew from 40.2% in 2021 to reach 42% in 2023.
Profit for the year 2023 stood at AED 254 million, having grown by 18.7% from 2022.

Spinneys has identified multiple avenues to accelerate the profitable growth of its business. These include like-for-like growth for existing stores, driven by growth in the target market and an increase in the Group’s fresh offering, private label and e-commerce penetration. Spinneys is also pursuing further expansion of its store network in the UAE and expansion into Saudi Arabia for the first time. Spinneys is aiming to introduce both “The Kitchen, by Spinneys”, an innovative new meal solutions concept, and “Spinneys Swift”, a hyperlocal e-commerce platform in 2024; and will continue to seek operational efficiencies including supply chain efficiencies, fixed cost controls, increased in-house production and operating leverage.

Spinneys is led by a well tenured management team who have an average of 23 years’ experience, spearheaded by CEO Mr. Sunil Kumar, who began his professional career at Spinneys 30 years ago. The Chief Financial Officer and Deputy Chief Executive Officer have 23 and 38 years of professional experience, respectively. The company has developed a sustainability strategy, which covers various key aspects, including its healthy and organic food offering to promote good nutrition, a net zero emissions commitment in its own operations by 2040, programs to improve supply chain transparency and initiatives to reduce food waste. Alongside the strong management team, Spinneys also plans to establish a Sustainability Steering Committee. Management is guided by an experienced and diverse Board of Directors, dedicated to upholding high standards of corporate governance, and led by the founding shareholder, Chairman Mr. Ali Al Bwardy, a figurehead in the UAE retail sector who is deeply committed to Spinneys’ future success.