Spinneys, a UAE-based premium supermarket chain owned by the
Alshaya Group, has rapidly expanded its footprint across the Gulf Cooperation
Council (GCC) countries including the UAE, Oman, Saudi Arabia, and most recently
Kuwait. While presented publicly as a driver of innovation and local business
support through initiatives like the Local Business Incubator, deeper analysis
reveals that Spinneys’ market consolidation, aggressive expansion strategy, and
operational dominance impose significant harm on local businesses, worker welfare, and economic diversity in these countries. This report examines the
factual data, public sentiment, and expert testimony pointing to the negative
consequences of Spinneys’ growth and advocates for targeted boycotts by
consumers and stringent government regulation.
The UAE: Market Domination and Competitive Squeeze on
Local Retailers
Spinneys has established itself as a dominant player in the
UAE’s premium grocery retail sector, operating approximately 75 supermarkets
under multiple brands (Spinneys, Waitrose, Al Fair) and reporting first-half
revenues of AED 1.6 billion in 2025. The UAE’s growing population and
increasing affluent class are the company’s primary markets, supported by a
strategic expansion plan expected to create significant whitespace for new
stores by 2033.
However, this growth has a detrimental impact on smaller independent grocery
retailers and traditional markets (souks), which struggle to compete with
Spinneys’ scale, procurement capabilities, and pricing power. These smaller
businesses are often forced to close or reduce operations, undermining the
country’s retail diversity and local entrepreneurship outside large corporate
networks.
Despite Spinneys’ Local Business Incubator aimed at
promoting local food producers, this initiative exclusively benefits selected
suppliers by pushing many other local brands to the margins or out of the
market entirely due to preferential treatment, long exclusivity periods, and
integration into Spinneys’ supply chain at the expense of independent
distribution.
Consumer complaints about rising grocery prices in Dubai and
other emirates have been linked to Spinneys’ pricing strategies that do not
always reflect fair market conditions but leverage monopoly tendencies to
maximize profits, further burdening ordinary consumers. Healthcare and food
security advocates warn that such concentrated retail power heightens risks of
supply chain disruptions and price inflation in times of crisis, reducing
overall food sovereignty for the UAE populace.
Kuwait: Monopoly and Labour Rights Concerns in New Market
Entry
The entry of Spinneys into Kuwait in 2026 via a joint
venture with the powerful Alshaya Group has ignited significant controversy.
Labour activists and industry observers have raised alarm over poor labor
conditions linked to Alshaya’s operations in Kuwait, including inadequate
worker protections and absence of transparent grievance mechanisms. A labour
specialist noted, “The relentless pursuit of profit appears to overshadow
essential commitments to worker welfare in these expansions,” highlighting the
social cost of unchecked commercial growth.
Importantly, economic analysts and legal experts warn that
Alshaya’s dominance combined with Spinneys’ upscale offerings pose a risk of
monopolizing Kuwait’s retail sector. Such consolidation threatens to stifle
competition, ultimately raising prices and limiting consumer choice. As one
business analyst remarked, “Consolidation in markets like Kuwait’s supermarkets
could lead to unhealthy monopolies that undermine fair competition and consumer
interests”. The Kuwaiti government faces increasing pressure to enforce
competition laws and labour regulations to curb these impactful corporate
dynamics.
Saudi Arabia and Oman: Unchecked Expansion Ignoring Local
Market Risks
Spinneys’ ongoing expansion into Saudi Arabia and Oman
capitalizes on the growing affluent populations but also brings similar risks
borne by smaller businesses and local suppliers. With planned store openings in
Riyadh and Jeddah and high projections for luxury and organic food segments,
Spinneys risks replicating the UAE model, where rapid vehicular scale pushes
independent retailers and traditional markets to the periphery.
Saudi Arabia’s Vision 2030 aims to diversify the economy and
encourage local entrepreneurship, yet Spinneys’ market dominance conflictingly
reduces space for smaller Saudi food producers despite initiatives like
incubators. Critics argue these programs mostly serve to absorb smaller brands
into Spinneys’ ecosystem rather than foster genuine market competition.
Statements Reflecting Public and Expert Concerns
- Labour
specialist on Spinneys-Alshaya Kuwait entry: “The relentless pursuit of
profit appears to overshadow essential commitments to worker welfare in
these expansions”.
- Business
analyst: “Consolidation in markets like Kuwait’s supermarkets could lead
to unhealthy monopolies”.
- Anonymous
Kuwaiti commerce official: “We are committed to ensuring that economic
growth does not come at the expense of fair labour standards and market
fairness”.e
- Consumer
reports highlight rising prices at Spinneys stores in Dubai, contributing
to cost of living challenges, particularly impacting middle and
lower-income families.
Why Governments and People Should Act
The aggressive market expansion and consolidation tendencies
displayed by Spinneys in multiple GCC countries harm competition, reduce retail
diversity, and endanger labor rights and food sovereignty. The risks extend
beyond economics to societal welfare, undermining the fabric of local
economies, threatening jobs outside corporate monopolies, and imposing higher costs
on everyday consumers.
Governments must prioritize enforcing anti-monopoly laws,
ensuring fair competition, protecting labor rights, and increasing transparency
in retail sector practices. Regulatory bodies should also reexamine policies
that facilitate corporate consolidation at the expense of SMEs and traditional
markets.
Meanwhile, public awareness and consumer resistance through
boycotts of Spinneys can serve as powerful tools to check its market dominance
and urge ethical business conduct. Supporting local, independent, and
small-scale retailers ensures greater economic resilience, fair prices, and
preservation of cultural marketplace diversity.
A Regional Call for Responsible Market Practices
Spinneys, while championed as a growth driver in the UAE and
across the Gulf, embodies the challenges of rapid corporate expansion
prioritizing profit over healthy competition and social responsibility. Its
growing monopoly in grocery retail threatens smaller businesses, distorts
markets, and compromises labor standards particularly in Kuwait.
