Carrefour defies Covid to record Sh25bn sales

Retail chain Carrefour shrugged off effects of Covid-19 pandemic to post Sh25.3 billion from its Kenyan outlets last year amid its expansion drive.

Majid Al Futtaim, the exclusive holder of Carrefour’s franchise in Kenya, announced the 30.2 percent jump in sales from Sh19.4 billion recorded in 2019 indicating that its aggressive expansion bid across major towns in Kenya and a focus on online shopping was paying off.

The retailer opened its first store in Kenya in 2016 and now has 11 outlets. It grew its sales in 2020 bucking a trend of poor performance by its foreign peers who have either recently exited the Kenyan market or reduced store space, citing unprofitability of the local market.

South Africa’s Shoprite Holdings recently shut its remaining two stores in Kenya leaving the country two years after entering it, while Botswana's Choppies also left the Kenyan market, citing unprofitability.

The move has left Carrefour as the only major foreign-owned large scale retailer in Kenya.

Carrefour now says that following its increased sales last year, it will continue the expansion of its retail business in Kenya with a focus on online shopping in 2021.

“Despite the challenging macro-economic conditions, Majid Al Futtaim continues to make progress with its expansion plans,” it said.

Supermarkets in Kenya last year took a hit from reduced sales as shoppers kept away over fears of contracting the coronavirus which has killed over 1,918 people and infected more than 113,967 in Kenya while disrupting supply and production chains.

Chains like Carrefour adopted safety procedures to make shoppers feel comfortable including availing hand sanitiser for staff and customers, and providing workers and shoppers with disposable gloves.