KENYA – Five months after celebrating the eighth anniversary, Carrefour Kenya has launched its 25th outlet at Runda Mall, Nairobi.
Christopher Orcet, Regional Director Carrefour East Africa at Majid Al Futtaim Retail CCE, noted that this expansion aims to provide opportunities for more local farmers, SMEs, and manufacturers who supply goods to the retailer, contributing to 99 percent local sourcing rate.
One month ago, Carrefour Kenya launched a new store in the rapidly expanding community in Ruiru town, a key industrial hub in Kenya.
The supermarket chain has announced that it will offer a smooth shopping experience, with appealing discounts across a broad selection of products.
So far, the supermarket chain has opened at least three outlets. In April, it opened a sprawling 600sqm supermarket situated in the Global Trade Centre in the heart of Westlands, Nairobi.
According to Cytonn, a market research firm, retail chains in the country have expanded from a total of 233 in full year 2023 to 244 branches.
The growth is associated with a growing middle class, urbanization which has opened other areas for retail investment, Presence of Gaps in the Market leading to an aggressive expanding to occupy new and previously vacated spaces left by struggling chains, among others.
Despite the above factors driving the growth of the retail market, various challenges continue to impede the overall performance of the sector.
Shoppers in Kenya are experiencing a diminishing purchasing power due to a tough economic period, despite the easing of some indicators such as inflation and a consistent drop in fuel costs.
Many Kenyans are struggling with increased taxation, particularly those who are formally employed, and persistently high levels of unemployment,
Construction costs have also been steadily increasing due to the prevailing tight macro-economic environment.
In Kenya, Naivas is the largest supermarket chain with 105 stores, followed by Quickmart with 60 stores. The major players in the Kenyan retail sector have also invested more in e-commerce, offering last-mile solutions.
According to a study by the Communications Authority of Kenya (CAK), revenue from the Kenyan e-commerce market is expected to grow at a combined annual growth rate (CAGR) of 19.15% and is anticipated to reach a market volume of KES 26.9 billion (US$208.2 million) by 2027.
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