Tuskys Supermarkets has shut down its Nairobi branch along Sheikh Karume Road.
The chain’s chief executive, Dan Githua, declined to comment on the closure of what has been one of its biggest stores with multiple floors.
The closure brings to 54 the number of Tuskys’ stores in Kenya.
Tuskys attributed closure of the store to failure to agree lease terms with the landlord.
The retail industry’s fight to keep prime locations with high foot traffic is seen to exert pressures on their profit margins.
Retailers are also battling other multiple challenges such as finance costs and mounting supplier debts that have resulted in stock outs pushing some players into the red.
Research by Kestrel Capital shows that Kenya’s retail and grocery stores earn a return on sales of between one and three per cent, underlining the importance of cost containment