Dubai grocer Spinneys tops Dh1 billion in sales amid war tensions

Dubai: Supermarket giant Spinneys crossed the Dh 1 billion revenue mark in the first quarter of 2026, even as regional conflict disrupted freight routes and slowed consumer activity in March.

The DFM-listed company reported revenue of over Dh 1 billion for the three months ended March 31, up 11.9 per cent from Dh 906 million a year earlier. Profit for the period rose 1.9 per cent to Dh87 million, while profit before tax remained largely stable at Dh101 million.

The results come at a time when food security and supply chain resilience remain major concerns across the Gulf.

The war-related disruptions seen across parts of the region in March once again highlighted how dependent modern food systems are on global shipping routes, freight corridors and stable logistics networks.

“Our strong first-quarter performance, delivered against a backdrop of regional uncertainty, is a testament to the resilience of our business model and the commitment of our people across the region,” said Sunil Kumar, CEO at Spinneys.

“Our strong revenue, profitability and store footprint in these conditions underscore the strength of our customer relationships and the advantages of our integrated sourcing and supply chain.”

In the UAE, where most food products are imported, retailers and distributors have increasingly focused on stockpiling, diversified sourcing and local supply partnerships in recent years (post-COVID and now the regional war) to avoid shortages during periods of disruption.

Spinneys said its sourcing and supply chain systems helped it maintain product availability despite freight complexities during the quarter.

The company said sales growth was supported by strong demand for fresh food and private label products, higher online sales and new store openings. Since April 2025, Spinneys has opened 13 new stores across the UAE and Saudi Arabia, including three during the first quarter of 2026.

Online sales continued to grow strongly, accounting for 18.8 per cent of revenue during the quarter, compared to 15.6 per cent a year earlier.

Sales momentum, however, weakened in March as the regional conflict affected consumer movement and supply routes.

Kumar said, "We have also been relatively fortunate in the current environment, with around 88 per cent of our stores located in residential communities rather than in tourist or office-led locations, meaning that the majority of our business has been impacted less from the disruption seen elsewhere as a result of the regional conflict.”

According to the company, transaction volumes rose 8.5 per cent year-on-year to 10.8 million during the quarter, while average basket size increased to Dh92.9 from Dh89.9 a year earlier.

Gross profit increased 8.4 per cent to Dh406 million, although gross profit margin narrowed to 40.1 per cent from 41.3 per cent in Q1 2025. Adjusted EBITDA rose 1.2 per cent to Dh184 million.

Spinneys said March was particularly challenging for its supply chain operations due to freight disruption risks and volatility across regional trade corridors.

To reduce the impact, the retailer said it activated contingency plans, including diversified sourcing, forward buying of essential products, and closer coordination with logistics partners.

The company also launched programmes, including “The Chef’s Counter”, which it said aimed to support local chefs and food businesses facing financial pressure during the period.

Looking ahead, the retail giant said uncertainty linked to regional dynamics makes it difficult to provide a firm outlook for the rest of 2026. The retailer said it is focusing on tighter cost controls, logistics efficiency and spending discipline to protect margins amid ongoing economic uncertainty.