Uchumi supermarkets CEO Julius Kipng'etich [Photo/the star]
The government retailer, Uchumi Supermarkets have seeing its revival efforts come to fruition as it records a 39% decrease in loss in the 2017 financial year. According to Uchumi's latest published financials, the retailer recorded a Sh1.7 billion loss down from Sh2.8 billion in 2016.In its revival plans and reconstruction strategies, Uchumi has over the last one year closed several of its branches remaining with just 20 as part of efforts to cut costs while improving the margins from sold goods.The move saw the revenues drop to Sh2.6 billion from Sh6.4 billion in 2016, as the cost of sales narrowed from Sh5.4 billion to Sh2.13 billion.“The board and management continued to implement initiatives aimed at recovery and turnaround in performance including streamlining operations, strengthening management and implementing improved operational processes,” Uchumi said in a statement.“the financial statements give a true and fair view of the consolidated and separate financial position of Uchumi Supermarkets as at 30th June and of its consolidated and separate financial performance and its consolidated and separate cash flows in accordance with International Financial Reporting Standards,” reads a note from its auditors.Julius Kipng'etich, Uchumi supermarkets chief executive officer (CEO) disclosed that the retailer is banking on the injection of capital to complete the turnaround process, lifting it back to profitability.Uchumi indicated, in July, that was it talks with a strategic investor to inject Sh3.5 billion to acquire a stake in the retailer, while the government has also committed to pumping in an additional capital.“Discussions are ongoing with a potential strategic investor and government shareholder loan is imminent with the expected release of Sh700 million,” said Julius Kipgentich.Mr Kipng’etich further revealed that the funds will be channeled towards restocking its stores as well as securing long-term deals for its 20 branches.