The market forces behind Spinneys Group

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Posted by: Nancy Wadd

Was trying to find reviews on Happy. Anyway, the new concept store in Lebanon is good but I expected much more from Spinneys' Michael wright. Although I believe it is a great idea but the place could have been a bit more friendly and I didn't feel much comfortable finding what I want although the place is relatively small. Aisles are always busy with many products scattered here and there and employees filling the shelves. I do understand that it's not meant to be as great as the main Supermarket Spinneys which I so much admire its CEO Michael Wright, but these are minor things which can be easily enhanced.

Posted by: darwinjanet

spinneys is a very good store.because here in qatar we recieve a items even this one is 2 days before expire.our comercial manager Mr Ali and our store manager Mr Pirrick allowed this.because the supplier always give them a monthly giveaways.before you go in spinneys qatar to shopp, please think it twice.

Posted by: Bulos

Spinneys marketing slogan is "value you can trust" but I find that to be far from the case - I have bought the same product for 1,000 Lebanese Lira ($0.66) cheaper at small corner shops that don't have the same economies of scale as such a big regional player as Spinneys. If there were decent consumer protection laws in the region, the supermarket should be sued for lying to consumers as the chain DOES NOT offer value you can trust, at all. But price aside, I find the service terrible and the queues longer than at any other retailer in the city. And as for the security guards at the entrance seizing your bag off you - while madams waltz past with huge handbags, enough with the double standards...

Posted by: Tribal Funk

Though i admire the growth and capability of Spinney's as a group and wish them well on their targetted expansion, i do feel that the blame for inflated pricing on Distributors is unwarranted and indeed false. The reality of the situation is that retailers have over time gotten used to receiving higher margins on products they carry which for them has become the norm. Over recent years the cost of operating has been driven up substantially, which combined with agressive growth targets and new and future outlet openings has created a requirement for the retailers to fulfil their financial obligations to their banks/lenders. Given the retail environment in the UAE, in which a retailer wins/pays for exclusivity to service entire communities, consumers in these areas have little or no choice but to travel greater distances to shop reasonably or pay the inflated prices on offer at Spinney's, Choitram's, etc. Retailers have over recent times, been questioned by Distributors over the inflated prices, which has had the effect of reducing volume turnovers at these outlets. A trend that in fact doesn't benefit Distributors OR Producers/Manufacturers. On the other side of the equation, Manufacturers/producers also have growth and expansion objectives, which require them to increase production, invest in new facilities/technologies, staffing etc, which has exposed them to a greater level of debt which must be paid. This forces them to put pressure on the distributor and retailer margins by raising their cost to distributor. Therefore, supermarkets will not reduce their margin and suppliers have to increase their margins which leaves the REAL reduction to be borne by the Distributors, who get squeezed from both sides. Until the the accepted practice of retailers monopolising communities via geographical catchment areas, is removed from the Gulf Markets, retailers will continue to benefit and grow from placing high premiums on their goods as opposed to consumer demand to shop for their 'Brand' of quality goods and services offered.

Posted by: Prachish Vasudeva

Spinneys is an apt name....they spin such yarns. Michael Wright would have us believe that the higher prices in Spinneys are due to the distributors. All good, except how come the same product is often upto 30% more expensive in Spinneys??? Is Spinneys such a poor negotiator that they are getting ripped off by the distributor? True, the quality of fruits and vegetables is better and may justify a small premium, but shampoo and toothpaste???? Give us a break Mr. Wright. PLEASSSSSEEEEE ;-)

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