Supermarkets scramble for Nairobi shoppers

“There is a lot of potential in retail,” says Mr Ciano.

New branches

Since 2006, Nakumatt has been carrying out a branch “modernisation” plan that has positioned its stores in the top-end of the retail market, targeting the rich with a wide range of electronic goods, furniture and other lifestyle products.

Nakumatt also became the first Kenyan supermarket to offer 24-hour shopping outlets and the first to enter the Rwanda market where it spent Sh240 million ($3 million) to establish the Kigali branch.

The retail chain’s total branch count currently stands at 22, including the Uganda and Rwanda outlets.

The chain, which has just opened three new branches in Kakamega, Nanyuki and Diani in Mombasa, reckons that the restoration of the CBD’s city-in-the-sun glory, backed by customer demands, had inspired it to make additional investments.

“All these openings remain in line with our regional expansion plans and puts us in very good position to attain our 2010 targets,” says Mr Shah.

The giant retail chain has been looking to wrap up a deal to unlock more than Sh2 billion for its branch expansion that will see it acquire a supermarket in Uganda and put up a second shop in Rwanda.

It has been looking to sell 30 per cent of its business to a strategic partner whose identity Mr Shah has refused to reveal, saying doing so would jeopardise negotiations which have been on the table since last year.

It is believed that the retailer has been in talks with Satya Capital, a London-based private investment provider, and Kingdom Holding Company, an investment group associated with the Saudi Arabia royal family, to inject Sh2 billion to enable it continue opening new branches so as to increase sales.