As new Spinneys Dubai CEO, Matthew Frost, prepares to start his role in January 2018 the retailer has announced its development plans. This includes expansion and potential online development. We look at these plans in more detail.
Spinneys has said it plans to open 18 new stores in the UAE by 2020. It is forecasting a growth rate of more than 40% through this expansion. This will be supported by innovation and digital product development. Spinneys is also looking at expanding outside the UAE but has not yet disclosed where this is.
Investment in flagship store and headquarters
Part of the retailer’s expansion plans include opening a new headquarters in Dubai. This will feature a flagship store and cookery school. Spinney’s will invest AED175m (US$47.6m) in the development.
The retailer will launch a loyalty programme in the first quarter of 2018. This aims to encourage shopper loyalty and enhance their experience through promotional offers.
Spinneys Dubai is also undertaking a feasibility study for an online store. There are currently concerns over the profitability of offering this service, so no clear plans have been announced.
The outgoing chief executive, Jannie Holtzhausen, meanwhile has said that the retailer could investigate opportunities in delivering meal boxes. The solution would be a good way for Spinneys to build on its foodie reputation, while also enabling it to add an online food option without launching a full grocery ecommerce offer.
However, the retailer has recognised shoppers are looking for increased convenience so need to consider ecommerce as a future possibility and will aim to launch such a service in the ‘next few years’.
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