Companies

Carrefour sales up 143 per cent in first six months

CAREE

Majid Al Futtaims’s Jean Yves Genies congratulates Rueben Muna and Sandra Nduari (right) who won in a Carrefour promotion at The Hub in Karen. FILE PHOTO | NMG

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Summary

  • The French retailer made public its Kenya half-year sales in a newly-released financial report that cited Nairobi as one its strongest growth markets.
  • The retailer looks set to double its yearly revenue in Kenya, which could see it hit more than Sh20 billion compared to the Sh8.2 billion it posted last year.
  • Carrefour, the world’s second-largest supermarket chain after Wal-Mart supermarket chain boasts 243 retail outlets across the Middle East, Africa and Asia. It now operates six branches in the Kenyan capital – at Two Rivers Mall, Thika Road Mall, the Junction Mall, The Hub, Karen, Sarit Centre and Galleria Mall.

Majid Al Futtaim, the exclusive holder of French retailer Carrefour’s franchise in Kenya, has recorded a 143 per cent jump in turnover in the first six months of the year, riding on accelerated expansion of the supermarket chain in Nairobi.

The Dubai-based conglomerate which opened its first store in Nairobi in 2016 made public its Kenya half-year sales in a newly-released financial report that cited Nairobi as one its strongest growth markets.

“Thanks to the group’s diversification efforts, significant growth was seen in Kenya and Egypt, with revenue increasing 143 per cent and 22 per cent respectively,” said the retailer whose business around the world generated strong revenue growth of 15 per cent to AED14.6 billion (about Sh399.2 billion). Carrefour is not required to disclose financial information to the public locally as it is not listed on the stock market.

The retailer declined to disclose its Kenyan sales figures.

“In 2018 we doubled our footprint in Kenya- with two of the new stores opened in the first half of the year and the third opened in July. It is this, coupled with the stability of our other stores, that has contributed to the growth in revenues,” said Franck Moreau, the Majid Al Futtaim Retail country manager for Kenya.

The French retailer looks set to double its yearly revenue in Kenya, which could see it hit more than Sh20 billion compared to the Sh8.2 billion it posted last year.

READ: Carrefour revenue hits Sh8bn in 2 years

Carrefour, the world’s second-largest supermarket chain after Wal-Mart supermarket chain boasts 243 retail outlets across the Middle East, Africa and Asia. It now operates six branches in the Kenyan capital – at Two Rivers Mall, Thika Road Mall, the Junction Mall, The Hub, Karen, Sarit Centre and Galleria Mall.

It is set to open another at the Village Market in December.

Its sales in Kenya are a pointer to a highly profitable Carrefour business which, with ongoing expansion drive, could see the supermarket chain morph into a multi-billion shilling operation.

The French retailer is slowly emerging as a top alternative for customers in the wake of fumbles by former market leader Nakumatt Supermarkets.

One-time leader Nakumatt, now in administration, and cash-strapped Uchumi, have shut several of their branches in Nairobi.