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Soaring Rents Pose Threat To Middle East Retail Industry
Jun 20, 2007

Spinneys chief said that he is not ready to commit his company to continuing contracts at present rates and explained the trend as a "major threat" to Dubai retail industry.

Spinneys chief said that he is not ready to commit his company to continuing contracts at present rates and explained the trend as a "major threat" to Dubai retail industry. He also added that the rental expectations are the main reason behind the small store lease agreements in the past 12 months.

In spite of the rising costs of setting up fresh stores in the UAE province, CEO of Spinneys said, the country was still looking for a mass plan for future openings. Currently, the company has 19 stores in Dubai. Now, it plans to set up 23 stores combining Sharjah before the year-end 2006.

At present, the officials of Spinneys are negotiating to open stores in Dubai Silicon Oasis, Dubai Festival City and in Burj Dubai area. The company is also trying to set up stores in Bahrain in the coming year. He added that in the coming year most of their stores would be in the UAE region and they only wanted to make Abu Dhabi better. To finish, he said that the company had no plans to lift up the size of its stores to fight with hypermarkets, for instance, Carrefour.

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