Spinneys, which recently got listed on Dubai Financial Market (DFM) following its successful IPO, has launched ‘The Kitchen by Spinneys’, its first-ever standalone food hall concept, at Dubai Mall.
The Kitchen by Spinneys has a dine-in format based on internationally successful concepts from the US to Europe and Asia Pacific. It offers high-quality, ready-made food, focussed on the customer shopping missions of “food for now” and “food for later”.
The new format will leverage the high-growth opportunity in the UAE’s food-service sector, which is projected to grow at a compound annual growth rate of 6.8 percent from 2022 to 2028. The company plans to set up 15 Kitchen by Spinneys in the UAE by 2028.
The second Kitchen by Spinneys is scheduled to open at Dubai Creek Harbour in the second half of 2024. Spinneys also plan to open four regular stores in Saudi Arabia by year-end and three more stores in the UAE.
Sunil Kumar, CEO of Spinneys, commented: “Today’s launch of The Kitchen by Spinneys is the first major post-IPO milestone in the execution of our strategic roadmap and another important step in delivering on our commitment to innovation and customer-oriented growth.
“Our first-ever standalone dine-in concept is proof of our ambition to harness the dynamism of the UAE’s food service sector, reinforcing our unique value proposition while expanding our high-quality, health-oriented offering.
“By incorporating this new experience into our growth strategy, we are diversifying our offering in our core UAE market and creating new and exciting ways to serve our communities.”
The first Kitchen by Spinneys follows the success of the proof-of-concept Waitrose & Partners store, which opened in ICD Brookfield Place in February 2022. It also draws from the Spinneys store in Meydan (opened November 2019), and in Dubai International Airport (opened April 2018).
The concept is supported by 13.5 percent of the company’s 2023 retail revenue and is positioned to capture favourable market trends towards eating away from home, the importance of convenience, and increasing focus on health and wellness.
Spinneys was listed on the DFM on 9th of this month after an IPO that raised AED1.38 billion and was oversubscribed by approximately 64 times in aggregate. It reported revenue growth of 10.9 percent for Q1 2024 to a record AED815 million ($221.9 million). Despite one-off IPO costs and the introduction of 9 percent corporate tax in the UAE in the first quarter, Spinney’s recorded profit for the period of AED75 million ($20.4 million), up 12.8% year-on-year.
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