The fresh food supermarket chain in the United Arab Emirates, Spinneys and Ayala Corporation, a Filipino business group, have entered a joint venture to build stores in the Philippines, marking the retailer’s first expansion in Southeast Asia.
The partnership represents Spinneys’ first venture outside of countries in the Gulf Cooperation Council, aligned with its strategy to broaden its geographic footprint by entering high-growth markets.
The collaboration also signifies Ayala’s stake in the retail sector, as it continues to bring international brands to the Philippine market. Under the partnership, Ayala Corporation will hold a 60 per cent stake, whilst Spinneys will own the remaining 40 per cent. The joint venture will be managed through a two-phased approach designed to leverage the core strengths of each partner.
In the phase, Spinneys will assist the joint venture in establishing and overseeing store operations. Once the framework has been set up, management and responsibilities will transition to the joint venture, ensuring that both partners continue to contribute to the venture’s growth and success.
The partnership will see Spinneys combine its operational and brand expertise in fresh food retail with Ayala’s local market knowledge, access to retail locations within mixed-use developments and experience across the property, retail and logistics sectors.
“Spinneys’ expansion into Southeast Asia marks an exciting new chapter for us. The Philippines offers significant long-term growth potential, with strong economic fundamentals, a growing affluent population and increasing demand for high-quality offerings. With a growing middle and upper-income population, the Philippines is seeing a clear shift in consumer expectations creating a strong opportunity for a modern, premium retail offering like ours. Our partnership with Ayala combines its deep local knowledge with our operational expertise, providing a strong foundation to grow in a measured way. As we enter this next phase, we’re delighted to be bringing our high-quality and fresh offering to a new region,” Sunil Kumar, Chief Executive Officer at Spinneys said.
