Nakumatt Supermarket has closed its Ronald Ngala Street branch in Nairobi, citing low sales from the downtown shop.
Nakumatt managing director Atul Shah said the branch, which was closed a week ago, had been struggling over the years with low sale volumes, becoming unsustainable to maintain owing to high cost of operations.
Mr Shah said the affected employees would be absorbed in other outlets.
“We have closed the Ronald Ngala branch completely because it has not been making enough sales to make it sustainable,” Mr Shah told the Business Daily on phone on Monday.
“Nakumatt is sometimes perceived as an expensive supermarket and its location was therefore not good for our business leading to its closure,” he added.
The closure of the Ronald Ngala branch now brings down to 63 the number of outlets that the retailer has in the region.
Last December, Nakumatt opened a branch on Mombasa Road, which was followed shortly by another in Kigali, Rwanda.