– Shoprite entered the Kenyan market in 2018 and planned on opening seven branches
– COVID-19 , a struggling economy and stiff competition from fellow retailers have led to reduced sales
– The retailer will officially exit the Kenyan market in January 2021, rendering thousands of employees jobless
Pay Attention: Join TUKO.co.ke Telegram channel ! Never miss important updates
South African retailer Shoprite joined the Kenyan market in 2018 hoping to cash in on what seemed like a bustling economy. They were wrong.
Shoprite also trades in other countries among them Namibia, Zambia, and Zimbabwe. Photo credits: Shoprite.
Source: UGC
Two years later, the supermarket chain is not only counting Ksh 3.2 billion in losses, but also ending its operations in the country.
Shoprite had outlets at Garden City, Westgate Mall, Karen and Nyali, Mombasa.
The exit plan, officially communicated to the Kenya Union of Commercial Food and Allied Workers, indicated that the chain plans to shut down the head office in January 2021.
The management sent a redundancy letter to its employees reiterating that ‘endeavors to continue trading in Kenya is no longer viable. The company suffered losses in the amount of Sh3.239 billion for the 2019/20 financial period.’
The decision will, once again, send to the streets thousands of employees who depended on the retail industry as a source of livelihood.Shoprite’s exit will leave thousands of employees jobless. Photo: Shoprite Kenya. Source: Facebook Source: FacebookEarlier this year, the supermarket had closed its Nyali branch and sent home over 100 workers.According to Shoprite’s financial statement for 2020 seen by TUKO.co.ke , the supermarket’s stores in the country have continued to perform below expectation. PAY ATTENTION: Click ‘See First’ under ‘Follow’ Tab to see Tuko.co.ke news on your FB Feed Apart from stiff competition from the lavishly funded Carrefour as well as local chains Naivas and Quickmart, a rise in the need for home delivery due to the effects of COVID-19 drastically reduced the chain’s shoppers.As of September 2020, the supermarket chain also had plans to either dispose or close two of their stores in the East African region by 2021.During their entry into Kenya, the supermarket’s CEO Pieter Engelbrecht was optimistic that since the local supermarket scene was in disarray following financial struggles by Nakumatt and Uchumi, their entry costs were minimal. “We could now go in and secure seven premises without paying anything other than agreed rental,” said Engelbrecht. Shoprite […]
