Quick Mart, a Kenyan homegrown supermarket opened its 32nd store in the suburbs of Kilimani, Nairobi targeting the middle-class.
The retailer has continued to expand its foothold in the Kenyan retail market with plans to open another store in Nyayo Estate, Embakasi July.
The retailer’s rapid expansion is attributed to its strategic investor Adenia Partners, a private equity fund management company based in Mauritius who has been facilitating the drive.
Quickmart Kilimani is officially open ….Our 32nd branch opened with lots of pomp and colour!
Come through for HUUUGE Offers!#QuickmartKilimani#QuickmartThirtySecond#QuickmartFreshAndEasy#PriceGuarantee pic.twitter.com/jWj0lE53kW
— Quickmart (@QuickmartKenya) June 24, 2020
Adenia Partners bought a controlling stake in Tumaini Self Service Limited through its special purpose vehicle Sokoni Retail Kenya Limited in 2018 an undisclosed amount.
“We have been able to scale our businesses and rapidly expanded from 24 stores at the time of the merger. We still have the PE fund strategically into the business and also being part of shareholding entity allowing us to expand,” QuickMart Supermarkets head of marketing Betty Wamaitha told Business Daily.
According to Cytonn Q1’2020 Market Review, in terms of performance, Kilimani retail market recorded an average occupancy rate of 85.5 percent, compared to the market average of 76.3 percent.
Within the same location, Naivas Supermarket unveiled its 64th outlet.
Cytonn Investments says this indicates that the Kilimani market appeals to a number of retailers supported by; availability of relatively good infrastructure such as the upgraded Ngong Road, and, presence of individuals with a high purchasing power since the area is an upper-middle-income neighbourhood.
“We expect the continued expansion of the retailers will cushion the sector’s performance in the wake of growing vacancy rates driven by some retailers shutting down their operations to cushion themselves against the impact of the Coronavirus pandemic and the fall of struggling retailers such as Botswana’s Choppies.”
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However, on the other hand, Tuskys Supermarkets faces cash flow challenges due to an unsettled KShs1.2 billion debts to its suppliers.
According to Knight Frank’s Kenya Property Market Outlook for quarter one ending March, said the retail sector ‘is perhaps the most significantly affected in the property market’ owing to the reduced foot traffic to major malls.
This saw Tuskys consolidate some of its branches to implement social distancing, and personal hygiene measures better due to the Covid-19 pandemic.
According to The Africa Report, “Tuskys current predicament and its solution will shape Kenya’s retail sector significantly. Like most retail chains in the country, the chain owns almost nothing but its brand, making its potential failure a big risk both for the retail supply chain and for the economy.”