Naivas Supermarket is set to open seven new outlets this year, bucking the trend in the country’s retail sector where operators are going through a rough financial patch.
The family-owned retail chain plans to open a new store in Utawala and Kericho by mid-August and thereafter one each in Kitengela, Mountain View (Waiyaki Way) and Mombasa.
Naivas will also open two more shops in undisclosed locations in Nairobi.
Willy Kimani, the retail chain’s chief operating officer, said this after opening an outlet on Kiambu Road (at Ciata Mall opposite Nakumatt Ridgeways), bringing Naivas’ branch count to 41.
The new branch, which is being marketed as a fresh foods store, cost Sh250 million to build.
“The cost of each shopping mall is dependent on several aspects, with size the main and obvious one. However, the anticipated average capital expenditure for one store at Sh100 million.”
“We are sourcing funds for this expansion internally, from normal cash flow and our shareholders,” Mr Kimani told the Business Daily in a telephone interview.
“Despite what is happening in the industry, the retail sector remains strong and attractive and that is why we are expanding.”
Naivas’ expansion comes as a positive development in a sector that has in recent months been in the spotlight for the wrong reasons. Nakumatt, the country’s leading retailer, has been the worst hit.
The failure by a unnamed private equity fund investor to inject Sh7.7 billion into the business has thrown the retailer into a spin as huge debt has seen it fail to pay suppliers, employees, and landlords.
Nakumatt has announced plans to close non-performing stores across the region.