Deacons East Africa Managing Director Wahome Mutahi at a past function. [Photo/ businessdailyafrica.co.ke]
Fashion retail store Deacons has projected a loss of sh208million in the full year to December 2017, it blames prolonged electioneering period, exit of Nakumatt from the market and proliferation of shopping malls.
In a statement, the fashion house said that the two presidential elections in the second half of 2017 saw its customers cut on spending thus significantly reducing its revenue income.
“The expected drop in profits were brought about by the presidential elections in Kenya during the second half period of 2017, which resulted in decreased consumer demand and spending,” Deacons said.
“Nonperformance and closure of some branches of major tenants in several shopping malls reduced traffic,” the statement reads further.
However the NSE listed company is optimistic that the business environment will improve in 2018 since the board has made tremendous changes that are likely to improve the situation in the said period.
“The board and the management are optimistic that the business environment will normalize in 2018. In the meantime, the board has made significant progress in its transformation program,” the retailer says.
In the half year period ending June, Deacons net loss increased to sh. 180.42 million up from sh52.63million net loss for the same period the previous year.