Uchumi supermarket has posted a loss Sh2.8 billion loss in its 2016 full year results for the year ending June 30, 2016.
The firm's loss was reduced by 17 per cent, from Sh3.4 billion recorded in 2015.
The management attributed the poor performance to turnaround strategies which involved supply chain challenges, adoption of franchising model and closure of non-performing branches in, Uganda,Tanzania Kenya.
The supermarket lost control of subsidiaries in Uganda and Tanzania in October 2015 where it was operating six and five branches respectively and closed two branches in Kenya.
Its returns dropped to Sh6.4 billion from Sh12.9 billion in 2015. Finance costs increased by Sh411 million in 2016 up from Sh335 million in 2015.
''The firm is focusing on turnaround strategy which include adoption of a franchising model, funding through shareholders loan, ICT improvement and supplier support,'' said Uchumi management, in a statement, Tuesday.
The turnaround plan is expected to take between 6 to 30 months.