Khetia Drapers Ltd., a fast-growing Kenyan company, says it is consolidating the management of Society Stores under one roof to unlock value and accrue synergy benefits for the business.
This is one of the latest consolidation moves within Kenya’s retail sector.
The company said the two entities have existed under one family umbrella since inception and they felt “it is time to bring everything under one’ creating one large national chain which will have more than 20 outlets making a combined turnover among the top 5 in the Kenyan retail industry.
“The above will also lead to economies of scale and further efficiency in time and cost savings as we shall eliminate duplicate head office costs,” the company said in a statement.
Khetia Drapers Limited established in May 1982 is headquarter in Kitale Town of Trans – Nzoia County of North – Rift Region. It owns a chain of supermarkets in Kitale and Kakamega, Busia, Eldoret, Bungoma and Kisumu.
“The consolidation will give us a wider geographical area, get more competitive and create employment more opportunities,” Ashok D. Khetia, Retail Chains Director told Khusoko.
Society Stores Limited founded by Trushar Khetia opened its first branch in Thika in October 2014. Currently, it has grown into a chain of 6 stores located in Naivasha, Limuru, Thika, Nyeri, Meru, Chuka and Maua.
The group says the consolidation process is expected to be complete b December 2021 “Which means every 2-3 weeks we shall roll over one outlet,” it disclosed on the process that begun early September.
It further said all outstanding account balances will have full and final reconciliation between the two teams, before which all final balances will be fully paid up by Society Stores. “All supplier payments are 100 per cent assured and guaranteed by the KDL Group as our relationship will continue even stronger via Khetia’s going forward,” they assured.