Companies

Naivas opens new branch in Syokimau

naivas

A Naivas store in Nairobi. FILE PHOTO | NMG

Naivas Supermarket has opened a new branch in Syokimau as it continues with its national expansion.

The outlet, called Naivas-Katani, opens its doors on Friday targeting thousands of shoppers in the region that has attracted a significant number of middle-class residents.

This is the retailer’s third store along Mombasa road and the 82nd branch countrywide.

The new branch comes at a time Naivas is racing to defend its market leadership against its closest rival QuickMart which has also been expanding in recent months.

“The new outlet is a food market covering 34,299 square feet is the 3rd of its format along Mombasa road, with the other two being Naivas Foodmarket Capital center and the just-opened Naivas Foodmarket Imara,” Naivas Chief commercial officer Willy Kimani said in a statement on Thursday.

“The store focuses on everyday fresh produce that guarantees value for money and it is also stocked with a wide variety of products to choose from.”

Naivas opened its 81st store at Imaara Shopping Mall in Embakasi constituency in February.

It has over the past few months been on an aggressive expansion spree, taking up prime space vacated by rivals and also new strategic locations.

It gained financial muscle to fund the growth after raising Sh6 billion from institutional investors including Amethis Finance which took a 30 percent stake in the firm.

Besides the Imaara Mall branch, Naivas also took over Greenspan Mall in Donholm Nairobi last month.

Tuskys Supermarket was the anchor tenant at the mall until it was kicked out by the landlord after it was unable to honour its tenancy agreement as its financial health deteriorated.

QuickMart and Naivas have been spending heavily on expansion to fill the void left by collapsed and financially troubled rivals.

Tuskys, for instance, has been rapidly shutting stores on the back of heavy debt and insufficient working capital.

Equity Bank #ticker:EQTY recently put up Tuskys’ five-storey commercial building in Nairobi, which also houses its store, up for auction over a Sh650 million debt.

The collapse of former retail giant Nakumatt Holdings also left scores of prime locations that Naivas and Carrefour have taken over.

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