Naivas supermarket launched its fourth branch in Nairobi Central Business District, occupying the space Nakumatt Holdings vacated at Hazina Towers along Monrovia street.
“The new store, a food market is the first of our stores of this format within the CBD. It will be stocked with a variety of quality products to choose from, ranging from fresh produce, branded food, general household items, electronics among many others,” Chief commercial officer Willy Kimani said.
The retailer targets a high number of footfall in Nairobi’s CBD and the growing population in Ongata Rongai, in line with its expansion strategy of increasing its footprint in satellite towns.
The heart of Nairobi CBD has been graced with the newest in the family – Naivas Food Market (former Nakumatt Lifestyle). Enjoy exclusive offers here & stand a chance to win rewards every time you shop & present your Naivas card! #KrisiBilaWorries pic.twitter.com/ATULjJmrnP
— Naivas Supermarket (@naivas_kenya) November 25, 2020
“With 66 branches, Naivas has for the first time surpassed the 65 number of branches held by Nakumatt in its prime days,” said Cytonn Investments.
“The continued expansion of the retailer as well as other retail chains such as QuickMart and Carrefour, taking up prime retail space left behind by troubled chains such as Tuskys and Nakumatt, is expected to cushion the retail sector performance,” they add.
The National Social Security Fund (NSSF) evicted Nakumatt from the premises over rent arrears in 2017.
According to Cytonn Investments, Retail Sector 2020 report, Nairobi Metropolitan Area retail sector recorded an average rental yield of 7.5%, 0.5% points lower than 8.0% recorded in 2019.
The performance is attributed to high rental rates of Kshs 168.5 per SQFT, which is 46.4% higher than the market average rates of Kshs 115.1 per SQFT amid an oversupply of 3.1 SQFT as at 2020.
Satellite towns on the other hand offered the lowest rental rates averaging Kshs 130.0 hence an opportunity for retailers such as Naivas to take up affordable space.