[dropcap]F[/dropcap]rench retailer Carrefour is emerging as one of the key foreign firms that are set to shape Kenya’s supermarket scene in the wake of the troubles big local players, Uchumi and Nakumatt, currently find themselves in.
The retailer has so far established four stores in prime locations in Nairobi and is set to open doors to another one in April, after signing a deal to occupy the space left by Uchumi at Sarit Centre in Westlands late last month.
The other outlets are located at The Hub in Karen, Two Rivers Mall, Thika Road Mall and The Junction. At the latter two, Carrefour replaced Nakumatt as the anchor tenant after the local retailer was forced out for failing to meet its rental obligations.
While South African retail giant, Shoprite, openly admitted that its decision to expand into Kenya was as a result of weakened competitor positions that have opened a window of opportunity to strengthen the group’s presence in East Africa, Carrefour has been tactically going for the kill.
Indeed, there have been suggestions that the manner Uchumi and Nakumatt are being hounded out of prime locations could be as a result of unfair business practices. No evidence to that effect has, however, emerged so far.
What is clear, though, is that Carrefour is keen on filling the space left by Nakumatt, which is currently under administration after a proposed deal with Tuskys that could have injected financial health into it was flagged down by the Competitions Authority.
Before its degeneration, Nakumatt was the outlet of choice for the upper-middle class. It was the place well-heeled Kenyans went to shop for anything from imported meat to the latest flatscreen TV sets, as one analyst put it.
READ: Shopping malls deliver middle class dream
This is the target market that MajiAd l Futtaim, the French giant’s local franchise, is eyeing. And it explains the speed with which Carrefour moved to take over the Sarit Centre position given that the Westlands area is a middle class enclave.
When it entered Kenya in 2016, Carrefour said it was targeting to open five hypermarkets and 10 supermarkets in the country within five years.
However, it changed its investment plans to take advantage of the chaos in the market last year to occupy segments left vacant by Nakumatt such as TRM and The Junction. “All the plans are no longer valid,” Carrefour country manager Franck Moreau told a local publication in December.
And, indeed, with the Sarit Centre deal, he was not joking. “We are elated to be making our entry into Westlands area, which we consider to be very strategic for our business. The Carrefour store at Sarit Centre, gives us an opportunity to present our differentiated services to thousands of customers who visit this mall every day, due to its prime location,” Moreau said.
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Before it moved to replace Uchumi, Carrefour had signed a deal with the mall’s owners to anchor the new new wing, which is under construction and is scheduled for completion by the end of the year. Thus the ground floor tenancy is a temporary move.
According to the retailer, when fully operational, the Sarit Centre store will offer 30,000 food and non-food items and host specialist sections such as fresh produce, groceries, a fresh bakery and a butchery. While it insists it is open to every shopper, the choice of goods and services on offer and pricing make all the difference.
What remains to be seen is the speed with which it will also see to open more supermarkets especially out of Nairobi.
Please, Carrefour, come to Diani Beach. We are waiting.
I did apply and even gave out the money for registration bt no reply..bt can I pliz hve a chance because I’m the one to cater for my needs by myself and have to work so as to earn.