KENYA – One of Kenya’s leading retail chains, Quickmart Supermarket, has expanded its branches to 57, an encouraging signal of a maturing retail industry in Kenya despite a deepening inflation sorrounding the country.
One of its newest branches is Quickmart Kileleshwa Branch, located at Basic Mall, along Mandera Road. This branch is the supermarket’s 57th store and is strategically located in an underserved market, providing Quickmart with an opportunity to grow its store footprint while availing its bespoke services.
Quickmart expansion network began in 2006 with its first store in Nakuru town, growing its footprint to Nairobi and gradual presence in Kiambu, Kajiado, Nakuru, Laikipia, Machakos, Trans Zoia, Uasin Gishu, Kisumu, Kilifi and Mombasa, and the newest Kisii branch.
This has been fueled by the merger between Quickmart and Tumaini Supermarkets in August 2020, which was approved by the Competition Authority of Kenya.
In 2021, growth-hungry Quickmart opened six new stores, the highest number among all supermarket chains in the country that year. Later, in 2022, it opened additional branches on Lang’ata Road and Machakos.
The competitive nature of Kenya’s retail sector has sparked innovation in customer service, which Carrefour Kenya has set bars high.
The retail chain owned and operated by Majid Al Futtaim has become the first retail chain in Kenya to launch a self-checkout service, situated at its Nairobi Westgate Mall store.
The technology allows customers to shop and complete purchases without the assistance of cashiers at the cash counter, saving time and eliminating inconveniences caused by long queues.
Kenya’s retail sector is said to be the second-most highly developed in Africa with large players like supermarkets taking up 30 to 40 percent of the trade, thus presenting a large opportunity for local small and medium-sized businesses to ride on its growth.
This is driven largely by population growth, urbanization, and, to an extent, the devolution process that has led to higher urban incomes over the last five years.
The retail industry in Kenya continues to witness a blitz for expansion of physical store networks, contrasting a much-hyped possible shift towards e-commerce.
“The growth in physical stores reflects the purchasing behavior of customers. While e-commerce is touted as efficient, the reality is that many shoppers in Kenya are still stuck to the legacy stores and retailers are respecting that fact for now,” an analyst said.
“Things may change later on, but as we speak, the physical store remains king and we have to take the products to the buyers through more physical stores.”
Wambui Mbarire, chief executive officer of the Retail Traders Association of Kenya (Retrak), however, said there is still room for e-commerce growth despite the dominant physical retail stores.
“The two will complement each other; they are not in competition. Brick and mortar are here to stay. Even Amazon, the largest e-commerce platform, has in the last three years opened brick n mortar stores,” she said.
For all the latest food industry news from Africa and the World, subscribe to our NEWSLETTER, follow us on Twitter and LinkedIn, like us on Facebook and subscribe to our YouTube channel.