UGANDA – Nakumatt Supermarket is in the final stages of acquiring two Ugandan stores of South African retail giant Shoprite.
Nakumatt Holdings’ head of strategy and operations Thiagarajan Ramamurthy said in an interview on Tuesday that the retail chain will sign the deal in less than two weeks.
“We will be signing the Memorandum of Understanding with Shoprite to acquire their outlets in Uganda,” said Mr Ramamurthy.
Shoprite Uganda country manager Jayte Slabbert could not be reached for comment as his phone went unanswered. The South African retailer closed one of its outlets in Kampala last month citing under-performance and poor location.
Take over the staff
The two stores that Nakumatt intends to buy are in Kampala. Shoprite opened its business in Uganda 15 years ago.
People familiar with its operations said the entry of new retailers such as Uchumi, Capital Shoppers, Quality, Nakumatt and Tuskys had contributed to its plan to exit East Africa.
Shoprite Uganda has a workforce of over 500 employees in its two branches. Nakumatt intends to take over the staff.
Nakumatt has eight branches in Uganda. The retail chain has been on an expansion drive in East Africa.
The buyout will mark the exit of the South African retail giant from the East African market having sold its three Tanzanian outlets to Nakumatt for a reported Sh4 billion.