Shoprite set to open third retail branch in Kenya in expansion strategy

KENYA – South African retailer, Shoprite, has unveiled that it will be opening its third branch at City Mall store in Mombasa, Coast of Kenya in August this year.

The retailer says the new outlet will create 115 new jobs and will have a seating area inside the outlet where customers can enjoy foods prepared in the facility.

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Shoprite, which prides as Africa’s biggest retailer, had initially set the opening for its maiden branch in the coastal hub city for March this year.

The store will be the Shoprite’s third in the country since it set foot in December last year when it opened its first branch in Nairobi’s Westgate Mall followed by a second at Garden City Mall in March 2019.

A Business Daily report reveals that the retailer has also signalled two more store openings this year, one in Karen, Nairobi and another at an undisclosed location.

“A lease agreement has been concluded with The Karen Waterfront and the Group will follow up on other opportunities as they become available.

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Shoprite sees a lot of potential in the country and is excited about the prospect of expanding its footprint over time,” the retailer said in a statement.

The retailer is increasingly investing in East Africa’s most vibrant economy as it seeks to maintain its dominance in Africa’s retail market.

The new branch comes just a year after it snapped up the space that was occupied by struggling supermarket chain Nakumatt.

“City Mall is very excited that Shoprite are now only a few weeks away from opening their very first store in Mombasa and their third store overall in Kenya,” City Mall proprietor Anish Doshi said.

Shoprite is gearing up to compete with Naivas, Tuskys and Carrefour that have also set shop in some of the country’s biggest malls.

Tuskys Supermarkets, a family-owned retailer, is currently Kenya’s largest retailer with 6,000 employees in its more than 60 stores as well as 900 staff at its seven stores in Uganda.

Kenya’s retail market in the recent past recorded significant dynamism as retailers continue to embrace digital platforms in a bid to satiate demand from young shoppers and grow sales volumes through e-commerce firms.

Notably, local retailers and grocery outlets including Chandarana Foodplus, Tuskys, Carrefour, Naivas and Zucchini have forged partnerships with e-commerce firms including e-commerce giant Jumia, Grocerypik, and Glovo.

According to a recent report by Nielsen Retail Measurement Defined FMCG Basket, the e-commerce would continue to evolve as the trade of fast-moving consumer goods (FMCG) online is projected to grow five times faster than offline transactions over the next five years.

Fuelled by the growing Internet penetration and take-up, retailers are poised to enter into more e-commerce agreements.

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