QuickMart Supermarket plans to open a new store in Nyayo Estate, Embakasi, next month as leading players are riding through a rough patch.
The announcement comes after the retailer opened its 32nd store in Kilimani on Wednesday, two months after Naivas Supermarket unveiled its 64th outlet in the suburb.
The retailer, targeting the middle-class, said a strategic investor and private equity (PE) firm Adenia Partners facilitated the expansion drive. The PE firm bought a controlling stake in Tumaini Self Service Limited through its special purpose vehicle Sokoni Retail Kenya Limited in 2018.
“We have been able to scale our businesses and rapidly expanded from 24 stores at the time of the merger.
“We still have the PE fund strategically into the business and also being part of shareholding entity allowing us to expand,” QuickMart Supermarkets head of marketing Betty Wamaitha said.
The expansion by QuickMart comes as one of the top local retailers, Tuskys Supermarkets faces cash flow hitch that has sparked a dispute with suppliers due to unsettled debts.
Tuskys has blamed the reduction in customers due to coronavirus in for its business troubles.
The retail industry has in the past has seen an entry of new international players like Carrefour raising competition that partly resulted in the collapse of Nakumatt and Uchumi supermarkets.
As a result, retailers like Naivas Supermarkets have sought additional capital to scale up operations in a highly competitive market.
In January, Naivas signed an agreement with French equity fund Amethis Fund to sell 30 percent stake to its expansion.
The undisclosed capital injection from the firm has seen Naivas add four stores from 60 stores.
The deal with Mauritius-based company Adenia Capital, a €230 million (Sh27.6 billion) fund, resulted in a merger with QuickMart in 2019.
Before the merger, QuickMart was operating 11 stores while had Tumaini 13 outlets.
Last month, QuickMart opened its first outlet in Nairobi city centre, upping the battle for shoppers after taking over the premises that Botswana-based Choppies, which plans to exit Kenya, occupied.
Credit: Source link