A gentleman shopping at Nakumatt supermarket in Nairobi. Photo/FILE
Nakumatt Holdings has opened its first outlet in Tanzania in a race to tighten its grip on the regional market as Kenyan retail chains increasingly look at the East African market for growth.
The retail store officially opened its first outlet in Moshi town on Saturdayand is targeting to open four more outlets in major urban centres such as Dar es Salaam and Arusha next year.
This looks set to open a new battle front for the control of the market where Uchumi has already opened shop and as Tuskys plans to enter the country next year.
The opening of Nakumatt Moshi brings to 35 the number of outlets across Tanzania, Rwanda, Kenya and Uganda even as the firm eyes Burundi in two years.
“Nakumatt is actively exploring options for a store in Burundi to ensure that we fully cover East Africa before setting off on the Nakumatt 2.0 journey which involves registering a pan-African presence,” said the Nakumatt Holdings managing director Atul Shah.
The $ 1.3 million (Sh117 million) investment in Moshi is set to ignite a war in a market now dominated multinational retail chains Shoprite Holdings and Game Stores both from South Africa.
The fight for the control of the region’s retail market is set to continue with Tuskys planning to set up it second branch in Ugandan early next year while focused on Tanzania and Rwanda.
“We are opening our second branch in Uganda early next year as we plan to enter Tanzania and other regional markets,” said Mr Frank Kamau, the managing director Tuskys Supermarket.
Uchumi is also planning to open its fourth branch in Kampala next year having opened a new branch in Gulu town this year.
Mr Shah said Nakumatt is conducting a feasibility study for Burundi, Zambia, South Sudan, DRC, Nigeria, Botswana and Malawi.
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