KENYA – South African retailer Shoprite will take up the Westgate and Garden City; as part of the two of seven prime spaces that Shoprite had secured at shopping malls in Kenya, targeting its retail market.

According to real estate firm Knight Frank, the company’s entry will hot up competition in Kenya’s retail sector.

“Shoprite’s entry is expected to stiffen competition in the shopping centre market, which experienced a tough year in 2017 as some household brands faced financial difficulties.

Shoprite brings a new offering into the market and retail property landlords will have more choices for anchor tenants,” said Knight Frank Kenya managing director Ben Woodhams.

Garden City Mall’s management, while revealing that Shoprite will be its anchor tenant, said the retailer will open its doors before the end of the year.

“We are excited to announce that we have finalised our lease agreement with Shoprite, which has chosen Garden City Mall as home to one of its first supermarkets in Nairobi,” Chris Coulson, MD of Garden City said.

The Westgate outlet, which starts trading by August 1, will serve residents of Westlands, Peponi and parts of Lower Kabete area.

It will be in close proximity to Carrefour – which snapped up the Sarit Centre space left by Uchumi – and Naivas supermarket at The Mall.

The SA retailer is setting up in Kenya at a time when local supermarket chains such as Nakumatt and Uchumi continue to struggle with stock-outs, rent arrears and delayed salaries for their staff.

Shoprite is set to compete with other retailers for the middle class’s disposable income as it expands to other malls following the signing of leases with building owners.

It already operates in Tanzania and Uganda with a strong presence in Central, Southern and West Africa.

“Its offering includes butchery, bakery, deli, fresh food and groceries. We are filling the gap in Westlands and its environs and believe shoppers will be delighted with the diversity and product range that Shoprite will bring them,” Ashmi Shah, retail portfolio manager at Knight Frank said.

Business Daily