A global retail chain in Kenya. [Photo/the-star.co.ke]
Entry of international retail chains and online stores is reshaping Kenya’s retail landscape only a decade after local players straddled the market like a colossus.
In 10-odd years, space which seemed to have been locked by Nakumatt, Uchumi, Naivas, Chandarana, and Tuskys is now home to Carrefour, Choppies, Massmart (Game), Woolworths, Mr. Price, Truworths and Babyshop in a sector that directly and indirectly, injects Sh500 billion into the economy.
Syndicated news service Bloomberg yesterday reported that Shoprite Holdings Ltd is in talks to open its first store in Kenya by taking up retail space left empty by Nakumatt Holdings Ltd.
Highlighting Kenya’s growing retail spend, Oxford Business Group reckons the arrival of international supermarket brands reveals the potential of Kenya’s retail sector, though concentrated largely in Nairobi and major cities.
Carrefour which is the world’s second-largest retailer through its local franchise holder, Dubai-based Majid Al Futtaim has two shops in Nairobi, one as an anchor tenant in the new Hub Karen and another at Two Rivers.
The game is also anchor tenant at Garden City. Replete with cash and coupled with well-stocked shelves, allegiance could be shifting to global entrants, who are thirsty for a slice of the local market.
Online retailers such as OLX, Kilimall, and Vitumob have also significantly helped create traction in the sector have set up online stores targeting Kenyans.
According to Jumia’s managing director Sam Chappatte, the number of customers increased rapidly in the last two years, forcing the company to increase their product range from a few thousand, when they started to an estimated million during their next Black Friday sales bonanza next week.
Changing lifestyles, characterized by a fast-growing middle class, appetite for convenient shopping is growing online retailing very fast.
This had been predicted by Consumer Insight as early as 2014 when research indicated a particular group of Kenyans was shunning neighborhood shops and kiosks for supermarkets chains.