UAE: Spar drives growth in Middle East with ADCOOPS deal
Spar eyes MENA
Spar International has entered into a partnership agreement with Abu Dhabi Co-operative Society (ADCOOPS) that aims to boost the retailer's presence in the Middle East.
ADCOOPA has opened, under licence, a flagship store for each format - hypermarket, supermarket and convenience - in the Aby Dhabi region. The company opened its first Spar hypermarket this weekend (26 January).
The agreement between the two groups also provides ADCOOPS the option to sub-license Spar "to suitable partners" in the Middle East North Africa region.
"We are very excited at the development of Spar in the UAE and delighted to have an excellent partner in ADCOOPS. They have spared no effort in finding excellent locations and have opened quality stores providing customers with an exciting customer experience. The strong position of ADCOOPS in the UAE market enables Spar to provide great prices and an extensive range of products to meet all shopping needs," Dr. Gordon Campbell, Spar International MD said.
Abu Dhabi, January 28 2013
SPAR International has announced ambitious plans to develop SPAR throughout the Middle East in a co-operative venture with Abu Dhabi Co-operative Society (ADCOOPS). These plans were unveiled to coincide with the formal opening of the first SPAR compact hypermarket in the United Arab Emirates. SPAR International has licensed ADCOOPS to operate SPAR in the United Arab Emirates with options to sub-licence SPAR to suitable partners in other countries in the MENA region.
ADCOOPS intend to develop the SPAR multi format retail strategy throughout the MENA region. Together, SPAR International and ADCOOPS have identified an opportunity for SPAR to take a leading role in the food retail market in the Middle East. In the initial development phase, ADCOOPS are opening in the Abu Dhabi region a flagship for each SPAR format: SPAR Hypermarket, SPAR supermarket, and the SPAR Express convenience store, each of which has their own distinct customer offer.
The first SPAR supermarket, which meets the daily shopping needs in the Khalidiya region of Abu Dhabi opened late in 2011. This store focuses on fresh departments and offers its customers a wide range of good value food and non-food products in a modern quality shopping environment. Unique to Abu Dhabi, it also features a wide range and selection of Food to Go in the KITSU area including a noodle bar, pasta station, roasted chicken, juice & smoothie bar. This has been warmly welcomed by local residents and office workers providing them with interesting lunch and dinner options.
The first SPAR hypermarket in the Khalifa ‘A' region of Abu Dhabi also focuses on being best in fresh. Its 3,500m² sales area features comprehensive produce, meat, fish, deli and bakery departments. It also has an extensive offer of Food to Go featuring Arabian, Asian and European dishes and an in-store seating area. It has a very wide range and depth of food, non-food products including electronics and a laundry service. In accordance with the SPAR values, this hypermarket not only offers great value, freshness and quality but also excellent friendly personal service.
The third SPAR store format, the SPAR Express convenience store for people on the move, will open in Abu Dhabi Tourist Club Area in early February. The store features extensive fruit & vegetables, a serve-over butchery counter, plus a strong range of grocery and dairy products to service the everyday needs of local customers.
Speaking at the opening of the SPAR Hypermarket, Dr. Gordon Campbell, Managing Director, SPAR International, said "we are very excited at the development of SPAR in the UAE and delighted to have an excellent partner in ADCOOPS. They have spared no effort in finding excellent locations and have opened quality stores providing customers with an exciting customer experience. The strong position of ADCOOPS in the UAE market enables SPAR to provide great prices and an extensive range of products to meet all shopping needs. The response of the customers has been tremendous and we are already exceeding sales targets."
Also speaking at the opening Mr Ahmed Ali Al Romaithi, Managing Director ADCOOPS said "with the global best practices and the strong positioning of the SPAR brand, ADCOOPS is now well staged as a strong contender in the regional retail landscape. ADCOOPS is a very successful retailer with over three decades of retailing experience and strong market position in Abu Dhabi and when combined with our regional partners, we are sure that SPAR will be a full and frontal regional brand."
The next stage of development will see the opening of 5 more SPAR supermarkets in the Abu Dhabi region during 2013. The Dubai market is also being targeted and suitable locations are being researched.
A joint venture and sub-licence agreement have been agreed by ADCOOPS with Q.N.I.E in Qatar. The first two SPAR Supermarkets will open in Doha before the end of the year. We are already at an advanced stage in negotiations with potential partners to open SPAR in Lebanon and Oman. We expect to be in a position to make an announcement of the signing of sub-licence agreements for both countries in the coming months.
Original source: Spar International
MarketLine's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown of the organic and inorganic growth activity undertaken by an organi...
Dubai-based retail and hospitality group Majid Al Futtaim is looking to buy a stake in Middle East grocer Spinneys....
Spar Russia BV, main representative of Spar International in Russia, is going to develop its network of partners in Russia who operate Spar stores on a franchise basis. The company sees the biggest po...
- Analysis: Is Heinz, Kraft merger "a growth story"?
- The challenges awaiting ConAgra's new CEO
- Focus: Can Mars gain share in Indian chocolate?
- Why Kraft-Heinz merger could herald more deals
- M&A Watch: Who could be on 3G Capital's radar?
- UPDATE: Heinz, Kraft strike merger agreement
- Infographic: Heinz, Kraft unveil combined business
- Fatal explosion at French desserts firm Senagral
- Buffett: Kraft Heinz to withstand health focus
- ConAgra confirms another private-label charge