•The retailer has been on an expansion spree since Proparco, a French sovereign wealth fund acquired a Sh3.8 billion stake in early September.
•A 2023 The Kenya Market Update report by Knight Frank shows that a majority of Kenyans and adopting physical shopping.
Image: JACKTONE LAWI
Retail chain Naivas plans to open six more stores in the next two months as it races to a record 100 stores by any retailer in the region.
The six outlets follow the supermarket chain's hitting the 91 mark in December 2022 which the firm had earmarked as part of its the plan to hit a million-dollar store in market value.
Speaking to the Star on the sidelines of its 92nd branch along Kiambu Road Naivas Chief Commercial Officer Willy Kimani said the retailer has a busy second quarter ahead as they purpose to open six outlets by July.
“This exciting development kicks off the retailer’s expansion plan set for this year and is a step closer to store number 100. A feat that will be the first to be accomplished by a supermarket chain in Kenya,” said Kimani.
He however did not disclose the regions they are setting up the stores.
The retailer has been on an expansion spree since Proparco, a French sovereign wealth fund acquired a Sh3.8 billion stake in early September.
The injection of private equity heightened competition into the local retail sector
Kiambu Road outlet covers more than 20,000 square feet of trading space with Naivas being the new anchor tenant at The Brick Mall. This is the sixth Naivas outlet in Kiambu County.
“The store opening comes at a very exciting period just after the launch of our seasonal campaign dubbed Naivas Kikapu Kibonge, that speaks to the hard economic situation that Kenyans are facing and promises shoppers across the country of extra offers,” said Kimani.
In recent years, Kenya's retail sector has been experiencing significant growth, driven by a growing middle class, urbanisation, and an increased use of technology.
After a tough business environment at the advent of Covid-19, Kenya Retail Sector Report 2022 shows that there has been a renewed appetite by Kenyan retail outlets to grow their operations.
A 2023 The Kenya Market Update report by Knight Frank shows that a majority of Kenyans and adopting physical shopping, a shift away from the online shopping that characterised the retail sector from 2020, when the pandemic struck.
The trend has renewed the appetite for retail outlets and driven up the occupancy of the premises.
Despite the fact that some of the retailers have been on an aggressive expansion, Kenya has become a tough market for foreign players forcing investors to tread carefully.
Supermarket chains in Kenya that currently are in competition include Naivas, Quickmart, Chandarana, Carrefour and Khetia, which have also continued to expand.
Uchumi, Tuskys, Nakumatt, Shoprite, Game Stores, and Choppies shut down either through bankruptcy or exiting the market.