Kenyan retailer Naivas opened its 63rd store in Mountain View Mall, along Waiyaki Way following the sale of 30 percent stake to France-based private equity (PE) fund Amethis Finance.
This is the second branch that the retailer has opened in 2020, following the opening at the Kamakis store on the Eastern Bypass in January 2020.
The Mountain View branch occupies at least 33,000 square feet of shop floor space making it the largest retail outlet in the western part of the city.
It will serve residents within Mountain View, Uthiru, Kabete, Spring Valley and the surrounding areas.
Willy Kimani, Naivas Chief Commercial Officer says their expansion is in line with its strategic mission to serve Kenyans at every possible opportunity.
“I reiterate that the Nairobi county’s population is still fairly underserved, particularly with fresh, quality and consistent food items,” said Willy Kimani.
The retailer is set to open two outlets within Kilimani and Naivas Imara branches in Nairobi in the second quarter.
“Modern urban shoppers want to feel they are in a fairly natural environment so we have gone for store designs that give them a sense of being in touch with nature, calming them as they get insight and inviting them to slow down and enjoy the highly tailored product assortment,” Kimani adds.
The firm has partnered with the motorcycle delivery service Glovo to boost its e-commerce service. It also says it has strengthened its capacity of its e-commerce team by 30 percent to meet the rising orders.
Cytonn Investments says the retailer’s expansion is enabled by; positive demographics as Kenya’s urban population continues to expand at an annual rate of 4.3% as per the World Bank, increasing the need for formal retail,
Two, the rising consumerism which is creating a niche for both local and international retailers alike.
Three continued investment in infrastructure which has encouraged growth in mall space, encouraging tenancy as well and changes in tastes and preferences by the growing middle class thus fueling the growth of retail chains.
“The increased interest by retailers into Westlands is supported by (i) positive demographics with the area supporting the upper-middle-income and high-end population who enjoy an increased purchasing power, (ii) adequate supply of mall spaces to suit demand. Westlands remains an attractive location for retail investors recording attractive rental yields of 9.2% in 2019, 1.2% points higher than the market average of 8.0%,” says Cytonn.