Middle East: results and expansion

Date : 17 July 2019

As Spinneys Egypt is bought by Investec Asset Management, 7-Eleven adds a new service and LuLu sets out expansion plans, we round up news from the region.

Spinneys Egypt ownership changes

A controlling stake in Spinneys Egypt has been acquired by Investec Asset Management. No financial details have been released about the purchase. Investec described Spinneys Egypt as one of the ‘leading grocery retail players in Egypt, having expanded to a current footprint of 13 outlets, comprising two hypermarkets and 11 supermarkets, and including two new openings in the last eight months’. Spinneys Egypt has been expanding its presence in recent years, taking the brand beyond Greater Cairo, Giza and Hurghada, into Alexandria, the North Coast and Minya.

Meanwhile, the chief executive of Spinneys Egypt, Mohanad Adly, said the investment would bring to the business ‘international experience and financial support’, which it would use to accelerate its growth, through the addition of new stores. With the Egyptian grocery market modernising at pace and other retailers investing strongly in their expansion, such as UAE-based LuLu and UAE-based Majid Al Futtaim, the investment in Spinneys should help it to compete.

Union Coop reports H1 results

Union Coop has said its revenue has grown 1.6% during H1 2019 to AED1.452 bn (US$395.2m), while its net profit rose 20% to AED284.6m (US$77.5m). During the first half Union Coop said it has cut prices by about 19%, with the company investing AED268.5m (US$73.1m) in prices during the six months. The investment was split across both price cuts and promotions.

7-Eleven partners with Fodel on ecommerce fulfilment

Fodel has announced a partnership with 7-Eleven that will enable shoppers to collect online orders from any of the retailer’s stores. Commenting on the partnership, the general manager for 7-Eleven in the country, Christophe Noblet, said: “Adding FODEL as a service to our stores enhances consumer convenience, increases footfall and will help boost impulse purchases from our customers.

LuLu sets out expansion plans for Malaysia

UAE-based LuLu has set out expansion plans for Malaysia as it looks to grow its presence across south and southeast Asia. It aims to add a further four stores by the end of 2020, a step it announced at the opening of its second hypermarket in the country, in Kuala Lumpur. LuLu said it was looking at sites throughout Malaysia, including Bachang (Malacca), Bangi Gateway, Johor Bahru and Setia City Mall.

Al Othaim signs partnership with Saudi Export Development Authority

Saudi Arabia-based Al Othaim has signed a partnership agreement with the Saudi Export Development Authority, which will help it to expand and promote the export of Saudi products to the retailer’s stores in Egypt. Saudi Arabia is attempting to grow its export base as part of the Saudi 2030 Vision initiative, which aims to increase the share of non-oil exports to 50% of its GDP, from 16%.