Spinneys Adapts Supply Chain Amid Shipping Challenges

Aug 12, 2026

68 min

Aug 12, 2026 02:31

UK-Europe-UAE road corridor, air freight: How Spinneys rewired its food supply network

## New Supply Routes

Spinneys, a leading UAE grocery chain, has revamped its supply chain in response to shipping disruptions. The company established a road freight corridor connecting the UK and Europe to the UAE, bypassing the Strait of Hormuz. This new route, passing through Turkey and Egypt, allows goods to reach the UAE in about 17 days, significantly faster than the disrupted sea routes.

## Increased Costs and Strategic Adjustments

The shipping crisis led to a dramatic rise in container costs, with prices soaring from $3,000 to $17,000. In response, Spinneys diversified its sourcing, looking to markets like Australia and South Africa. Despite higher costs, the company maintained product availability between 83% and 88% in the second quarter.

## Consumer Behavior and Private Label Expansion

Spinneys observed a shift in consumer behavior, with customers opting for smaller purchases. The company decided to hold prices on 500 key-value items to ease the burden on shoppers. Private-label products now make up 47.3% of revenue, with plans to expand into new categories.

## Future Growth Plans

Spinneys continues to expand, opening 11 new stores in the UAE and Saudi Arabia over the past year. The company plans to open additional stores in the UAE, Kuwait, and the Philippines by early 2027. Spinneys also increased its stake in its Saudi operations to 70%, reinforcing its presence in the region.

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