A joint venture between UAE grocer Spinneys and Philippines conglomerate Ayala Corporation aims to introduce premium supermarkets across the archipelago, with the first outlet slated for the fourth quarter of 2026. Ayala will control 60 per cent of the venture, with Spinneys holding the remaining 40 per cent, launching the Dubai-based brand's first expansion beyond the Gulf Cooperation Council.

The two-phase deal calls for Spinneys to bring its operational know-how initially, before handing over day-to-day management to the new entity. The move seeks to fuse Spinneys' reputation as a high-end fresh-food retailer with Ayala's deep roots in property, logistics and retail in the Philippine market.

Spinneys, founded in 1961 in Dubai, has grown into a premium grocer in the Gulf region. Over the past year, it has ramped up its store count in the UAE and pursued entry into Kuwait, signalling an appetite for broader geographic diversification. Ayala, traditionally dominant in real estate, banking and infrastructure, has increased its forays into consumer and retail sectors via strategic partnerships.

In announcing the alliance, Spinneys' CEO Sunil Kumar emphasised the Philippine market's long-term potential. He pointed to strong economic fundamentals, rising affluence and shifting consumer tastes as factors that make the country a suitable stage for premium retail. For Ayala's leadership, partnering with a globally recognised brand such as Spinneys aligns with their ambition to raise the bar for retail in the country and stimulate trade with the Gulf.

Market analysts view this move as a calculated risk. On one hand, entry into Southeast Asia opens a high-growth, large consumer base beyond Spinneys' traditional markets. On the other hand, the Philippines already hosts entrenched retail chains and supermarket operators with well-established networks and cost structures. To succeed, the venture will need to strike a balance between premium offerings and affordability while scaling efficiently.

The joint venture comes amid a changing retail landscape in the Philippines. Consumers are demanding fresher produce, curated experiences and higher quality in food retail. International entrants such as Spinneys face the challenge of tailoring their premium model to local supply chains, regulatory regimes, and the fragmented geography across islands.

During the initial phase, Spinneys will assume responsibility for store setup, sourcing, training and branding. Over time, it will pass daily operations to the joint venture team, allowing deeper localisation. The first store is expected in Metro Manila or another major urban centre, with multiple outlets planned thereafter.

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