S**prite has gone back on its plan to open seven stores in Kenya due to high cost of renting space. The South African retail chain says its plan to expand in the country has been hampered by compe***ion, particularly from Paris-based Carrefour.
“Due to the aggressive expansion of Carrefour there are no cheap sites left behind with the demise of Na***att and Uchumi,” according to Gerhard Fritz, S**prite’s head of operations outside SA in an emailed response to questions from Bloomberg. “We have declined some sites as we feel rentals are too high. La***ords are having a field day playing each off against each other.”
Even so, S**prite is scheduled to open three more stores in Kenya next year, he said. For Carrefour’s part, the retailer has trebled its number of outlets in the country to six in the past year and has two more opening in coming weeks. Na***att, which appl*** to the high court to be placed under administration in October 2017, had 62 branches across the East African region.
S**prite opened its first store in Nairobi on Thursday, at Westgate Mall, a site previously occup*** by struggling Na***att, which has shuttered all but six stores in East Africa’s biggest economy. French retailer Carrefour, Walmart-controlled M***mart and C**ppies Enterprises of Botswana are also seeking to f*** space left by the debt-ridden company and state-backed Uchumi Supermarkets, which is facing a winding-up pe***ion.
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The 50,000-square-feet flagship store at Westgate is fitted out to the latest specification of S**prite’s premium ‘Checkers’ brand. S**prite, which operates more than 2700 stores in 14 countries outside of South Africa, promises a diversif*** product range and consistent value for s**ppers in the Kenyan market.
The retailer has entered the country to strengthen its position in East Africa, with Kenya being the region’s strongest economy. S**prite w*** open at Garden City in early 2019 and w*** follow up on other opportunities in the city as they become available, in addition to the potential for future expansion outside of the capital.
Ben Woodhams, Managing Director at Knight Frank Kenya, said: “We are delighted that S**prite has c**sen to launch in Kenya with the premium Checkers level of fit-out at the Westgate S**pping Mall, and I believe s**ppers w*** be impressed by the quality of this fantastic new store – a real first for Kenya.”
Westgate S**pping Mall now has a Gross Lettable Area of 267,881 sq ft following the completion of Phase II of the restoration. The second phase of restoration opened officially for trading on October 16, adding over 82,000 sq ft to the s**pping centre development. The s**pping mall is built to the highest international standards and the development would stand out in any part of the world.
Westgate’s restoration added more internal exclusive roads and parking spaces in the s**pping mall to now accommodate over 700 cars. The mall also has a street-style pop-up market and a children’s play area. Ashmi Shah, Retail Portfolio Manager at Knight Frank Kenya, said: “With S**prite’s opening at Westgate S**pping Mall as the anc**r tenant, together with some fantastic international brands, the mall w*** record further growth in footfall with its enriched s**pper experience.”
Knight Frank Kenya also signed up Miniso for Westgate, which has opened alongside other flagship outlets for international retail brands such as Mango, Hugo Boss, Lacoste and Gr*** S**** in the newly added p***e retail space.
With the recent signings, Knight Frank Kenya has e****lished itself as the market leader in retail leasing, having been involved in all major s**pping centre developments across the country for 20 years. The real estate consultancy also has the largest retail property management portfolio, including The Junction Mall, Garden City Mall, Rosslyn Riviera Mall, Cedar Mall Nanyuki, Signature Mall, Lunga Lunga Square, T-Mall, Ridgeways Mall, Capital Centre, Oasis Mall and Mtwapa Mall.
The firm was feted with five a***ds in the Real Estate Excellence A***ds 2018, further cementing its position as the market leader. The a***ds were Best Retail Property Agents 2018, Best Retail Property Managers 2018, Best Commercial Property Agents 2018, Best Commercial Property Managers 2018 and Facilities Manager of the Year.
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