Small-scale retailers have always been a part of the market landscape. [Photo/kenya-bp]
Small-scale retailers remain a critical plunk servicing Kenyan consumers in a sector that is replete with local and global players.
Amid the changing retail space characterized by an influx of global retail chains; emerging and established supermarkets, a significant retail spend will continue being tapped by corner shops, wholesalers, and mini-stores.
This debunks concerns that the gap left by struggling retail chains like Nakumatt and Uchumi could cripple the supply chain locally even as global newcomers dig in for a piece of Kenya’s estimated Sh1.8 trillion retail spend.
This group is mostly the middle-and-upper middle-class citizens most of whom reside in towns and cities and constitute a small percentage of Kenyan consumers.
The rest are serviced by small or ‘kadogo’ retailers.
But growing uptake of e-commerce and dwindling fortunes of leading supermarkets seem to have emboldened performance of small retailers, who are popular among consumers for their notoriety to unpack household consumables then repackage into small or “kadogo” quantities.
The fact that these small retailers cover the whole country falls along the strategic mapping of the fast-growing e-commerce experience, which continues to deepen on increased smartphone usage greatly favors these retailers.
Banking on immediacy, low costs devoid of brick-and-mortar operation costs, e-commerce is giving more small retailers the perfect platform to reach out to customers in a country where it is estimated that two in every three Kenyans have access to the internet.
Amid the buzz of incoming international retail brands and local takeovers of struggling retail chains, these kadogo retailers will continue sustaining the value chain playing a critical component for many Kenyan shoppers on account of spread, location, convenience, and cost.
Geographic area being local and agile makes small retailers in key geographic areas countrywide to service customers on a level that would be difficult or even impossible for supermarkets.
Being close to customers also lets them spot market trends faster.
Online e-commerce platforms such as Kilimall, Jumia, and OLX are giving small retailers a lifeline with their platforms that enable them to sell goods and services online.
Everything is now online. Our advantage is that platforms like Jumia are doing all the advertising for us.