STRATEGY

Naivas opens new store, signals slow down in expansion drive

The retail chain has crossed 12,000 employees mark after the opening of new branches in the past 12 months.

In Summary

•However, going forward the retailers says it is looking to employ more caution in growing its outlets this year  

•The retailer has been on an aggressive expansion spree in the last few months, taking up prime space vacated by rivals and also new strategic locations.

The new store brings the total count of branches in the greater Thika Road region to 12 comprising of all store formats that the retailer operates.
The new store brings the total count of branches in the greater Thika Road region to 12 comprising of all store formats that the retailer operates.
Image: JACKTONE LAWI

Local retailer Naivas Supermarket is set to open two more stores in the next few weeks as it steps up its expansion drive and a grip on Kenya’s market share growth against its closest rivals in the country.

The chain that opened its 103 store along Thika road its second this year and is planning two more stores in Lang’ata and Buruburu.

The upcoming stores will grow the retailer’s branch network to 105 across the country against its closest rival Quickmart that opened its 60th retail store in Narok town last week. 

The retailer has been on an aggressive expansion spree in the last few months, taking up prime space vacated by rivals and also new strategic locations.

However, going forward the retailers says it is looking to employ more caution in growing its outlets this year.

“We have planned five outlets by the end of this year. Our approach is scientific we are doing more feasibility studies before we launch into any new location. Our expansion is based on those feasibility study and viability of those sites,” said Naivas Senior commercial manager Denis Makori.

The retail chain has crossed 12,000 employees mark after the opening of new branches in the past 12 months, making the company one of the largest private sector employers in the country.

Their closest rival Quickmart currently runs operations spread out across 16 counties and a total workforce of more than 7,000 employees.

The opening of Naivas’ new outlet brings the total count of branches in the greater Thika Road region to 12 comprising of all store formats that the retailer operates.

“Even as we celebrate this milestone, we are cognizant of the fact that we are in unchartered waters by being the very first supermarket in the country to scale beyond 100 branches,” said Naivas chief of strategy Andreas von Paleske.

WATCH: The latest videos from the Star