About five years ago, their used to exist high end and low end supermarkets meant for different classes of customers. With high end supermarkets pining up higher prices as compared to the latter.
But today, it is hard to draw a clear line when looking for a high or low end supermarket as the struggle to win more customers get more intensified.
In 2017, supermarket outlets did not struggle so much as they did in 2018 which so a big turmoil on even well established joints.
We look at supermarket outlets in Nairobi and across Kenya who could not bear with the tides of business and resorted to closing down completely
1.Naivas- Kitengela Branch
One of the leading chain supermarkets in Kenya, Naivas announced that its outlet which was opened four months ago in Kitengela was shut down.
Through a statement, Naivas said that the outlet under Kitengela Mall closed at the end of October 2018 and its assets moved to its sister branch branch in Nairobi city- Lang’ata Branch at Freedom Height Mall.
“We will be closing the Kitengela Mall branch in the next two weeks … We want to ensure we are more accessible and align to new store strategy,” said Naivas chief commercial officer Willy Kimani during an interview.
Among the main reason to the Kitengela closure, poor performance will be blamed.
Naivas had been on expansion spree after the fall of Nakumatt, have been trying to tap market left behind by their old rival.
2.Naivas – Ronald Ngala branch in Nairobi
This branch was also shut down and relocated to the Githunguri branch to Utawala during the month of October 2018.
“We do not fear any competition at all. The stores’ operations were relocated to the new stores. The Githunguri store’s operations have been moved to Utawala and old Ronald Ngala to new Ronald Ngala branch. Ronald Ngala branch was adjacent to the new one and hence management thought it wise to merge the operations,” explained the Chief of Operations at Naivas Willy Kimani
They also aimed at cost cutting among other reasons to close it down.
Interesting all the staffs were not affected after the shut down of Naivas Kitengela and Ronald Ngala branches
3.Nakumatt Nanyuki Branch
Nanyuki Branch was shut down around January 2018, but with some little drama.
The owner Nanyuki Mall who was demanding 36 million from Nakumatt on 2nd January 2018 in the morning threw the left over to the streets inviting looters to start of their new year in style with freebies .
Police had to fire in the air to scare away a mammoth of looters.
4.Nakumat Moi Avenue
Before its shut down, it actually went down on its knees.
Shoppers could not help but sympathize with empty shelves across the branch.
Employees also went on strike due to salary arrears
The Branch was later taken over by Naivas.
5.Nakumat UKay Mall In Westlands
So unfortunate was Nakumat Ukay Mall that it had to go down on the fact that her tenant Ukay Mall was built on riparian land.
The branch was consequently closed down for good
The demolition that started around 5.00 am in the morning was hampered with an accident which occurred when a section of Nakumatt Ukay second floor came down on the bulldozer that was dismantling it.
The video shows that the driver of the bulldozer might have been injured
6.Ukwala Supermarket
Ukwala outlets were taken over by Choppies which is being run and managed by a South African firm.
Choppies have litery been grabbing spaces and expanding more of their branches
7.Uchumi Supermarket
When Karumo capital was approached by management of Uchumi to inject in more funds, they pulled out crumbling down the 3.5 billion deal.
Their messiah, Julius Kipngetich took off in December despite failing to secure a deal with Asian investors.
Despite huge debts, Uchumi closed down more branches across the country due to stock-outs, rent arrears and salaries.
8.Tuskys Beba Beba
Located on Tom Mboya Street in Nairobi’s CBD, it was closed on 2nd July 2018, 11 years down the line.
“The Bank of Baroda has been our landlord for 11 years,” says Tuskys management in a statement. “The bank has now informed us that they have sold the property. The new owner has notified us of their intent to re-develop the property. Consequently, we have to close business in that location effective 2nd May 2017.”
All the employees , 104 in number were taken to other branches as the chain promised to reopen the branch in a new location
9. Tuskys Ruaka and Tuskys Hyrax
The Ruaka branch was blamed on the launch of Two Rivers Mall, but it raised eyebrows when Naivas bought all their stock and relaunched it few days later.
Tuskys Hyrax in Nakuru was largely blamed on market saturation and poor feasibility study
10. Tuskys Sheikh Karume Road
The closer of the branch was largely blamed on fall out with the tenant.
At that time, Tuskys management provided no clear comment after the vacation in February 2017.
11.Tuskys Fire Station Store
After failing to agree on lease terms, the store lost its lucrative space to Eastmart, one of their top rivals in the CBD back then in 2013.
