A gentleman shopping at Nakumatt supermarket in Nairobi. Nakumatt Holdings managing director Atul Shah estimated that local retailers suffered losses of more than 1.5 per cent turnover due to organised crime. Photo/FILE
Nakumatt Holdings will next year extend its wings to West and South Africa as part of its strategic plan to grow beyond the East African region.
The retail-chain’s managing director Mr Atul Shah said the company has started feasibility studies to venture into new horizons in Nigeria, Gambia, Zimbabwe, Botswana and Malawi.
“Our next landing will be in West and South Africa where we want to conquer and create more wealth not only for Kenya but for Africa as a whole,” said Mr Shah while opening Nakumatt’s newest store in Nakuru.
The chain, which targets middle and upper income customers, has a total of 36 branches in Kenya, Uganda, Tanzania and Rwanda, and hopes to open outlets in South Sudan and Burundi by the end of next year.
The retailer earlier said it was looking for equity investors to buy nearly half of the retailer next year to help pay for its expansion across the continent.
The supermarket wants to attract equity investors rather than rely on costly bank loans, and does not intend to list on the Nairobi bourse for the next four years, said the company.
Mr Shah told Reuters the chain would initially seek to sell a 15-18 per cent stake for $50 million (Sh4.2 billion), and invite international retailers to take up about 25-30 per cent thereafter.
“We believe in developing partnerships with local entrepreneurs and that is why we have made a comeback to Nakuru where the dream of Nakumatt was first nurtured some 20 years ago,” said Mr Shah.
Nakumatt launched in 1965 but has been in Shah’s family since 1987. The opening of the Nakuru branch comes in the wake of increased investor interest in Nakuru, Kenya’s fourth largest town that has seen banks and retail chains race to gain a foothold in their quest for growth.
High investor interest in the town is linked to increased economic activity that recently saw UN-Habitat rank it the fastest growing town in East and Central Africa.
Besides Nakumatt, Uchumi supermarket has also made a comeback to the town five years after it closed shop due to liquidity problems. The re-entry of Nakumatt is set to intensify the scramble for the lucrative market dominated by other supermarkets such as Gilanis, Tuskys, Ukwala, Stage Mattresses and Wool Mart.
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