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Nakumatt to open at Donholm

SUPA

Nakumatt has announced plans to open a new branch in Donholm, near Kayole estate. PHOTO | FILE

Nakumatt Supermarkets is set to open a new branch in Donholm, near Kayole estate, in one of the retail chain’s rare forays into relatively low-income neighbourhoods.

The retailer, whose branches are predominantly located in middle to high-income residential areas, says it will spend Sh150 million to set up the Donholm store.

The new branch is expected to open next month and will employ 100 permanent staff.

“We chose the location due to its high population, also factoring in the growing economy in the area,” said Nakumatt Holdings’ head of strategy and operations Thiagarajan Ramamurthy.

Chains

The supermarket chain recently acquired three stores in Tanzania previously owned by South African retailer Shoprite at a cost of Sh3 billion.

The new branch will mark Nakumatt’s entry into the sprawling middle and lower middle-income Eastlands estates where it has only one outlet, the Embakasi branch.

The retailer is making inroads to areas where other supermarket chains such as Naivas, Uchumi and Tuskys have already gained their footing.

Nakumatt has adopted a business model of packaging some of its products under the “Nakumatt Blue Label,” which are cheaper than branded goods – a strategy that it could use in wooing new customers in the lower middle class.