Nakumatt to open Walt Disney, fashion outlets in new plan
Nakumatt Thika Road. FILE PHOTO | NMG
What you need to know:
The supermarket chain plans to invest Sh1.2 billion in opening the outlets and will expand from basic household goods to include luxury consumer goods such as footwear, cosmetics, toys and consumer electronics.
The strategy will see Nakumatt change its model to a departmental store, where its shopping malls will sell products under different categories segmented by brands beyond what is offered by traditional supermarkets
Nakumatt is looking to open stand-alone stores stocked with goods from global brands such as Clarks, Skechers and Walt Disney as the retailer diversifies with eyes on the expanding middle class with higher disposable incomes.
The supermarket chain plans to invest Sh1.2 billion in opening the outlets and will expand from basic household goods to include luxury consumer goods such as footwear, cosmetics, toys and consumer electronics.
The strategy will see Nakumatt change its model to a departmental store, where its shopping malls will sell products under different categories segmented by brands beyond what is offered by traditional supermarkets.
“In coming weeks, we shall be formally opening our new Clarks and Skechers concept stores as we embark on this strategic project to incorporate exclusive departmental stores across our branch network,” said Atul Shah, Nakumatt Holdings managing director.
"We are negotiating with several other global lifestyle brands including the Walt Disney Company to allow us present a refreshing and truly world-class retail product for our discerning customers.”
The entry of Clarks, Skechers and Walt Disney heightens the scramble by international brands positioning themselves to exploit Kenyans’ growing appetite for the finer things in life such as clothes, shoes and drinks.
Nakumatt said on Monday it would spend Sh480 million to open the six departmental stores — three each for Clarks and Skechers.
Mr Shah said the company had already commenced construction works at three of its malls in Nairobi — Thika Road Mall, Westgate and Junction — to modify them to accommodate the new product lines.
British shoe retailer Clarks confirmed to the Business Daily that it would open three stores in Nairobi this year as a strategy to penetrate the regional East African market.
“Our strategy is already in place and we will soon be opening three stand-alone stores in Nairobi early next month. We are working with our Franchise partners Nakumatt,” said wholesale manager in charge of Middle East and Africa at Clarks International, Loveth Monteiro.
Skechers, an American shoe company with more than 900 stores around the world and 12 in Africa, will also open its pioneer three outlets in Nairobi. Kenya becomes the fourth African country where Skechers will have its outlets after South Africa, Egypt and Morocco.
Nakumatt further plans to open Disney stores to stock the popular American entertainment label’s products such as toys, clothing, computer games and other merchandising based on its characters like Mickey Mouse.
Nakumatt is seeking to cut reliance on household goods and focus on lifestyle products to tap Kenyans’ increasing taste for trendy fashion and global brands, which offer higher margins.
The move by Nakumatt to open several branded shops focused on luxury goods such as fashion, accessories and gifts puts the firm in direct competition with lifestyle retailers such as Deacons and Woolworths.
Nakumatt in February inked a deal with Revlon to rollout mini departmental stores selling cosmetics products for the New York-listed firm.
The supermarket had earlier signed another deal with L’Oreal to trade in Maybelline makeup brands owned by the French cosmetics company.
Nakumatt, ranked Kenya’s largest retailer in terms of turnover, is racing to stay ahead of Kenya’s competitive retail market which has attracted international players such as Massmart, Tesco and Shoprite who are eying a piece of the region’s retail pie.
