Troubled Tuskys Supermarket has closed its Karasha branch along Kenyatta Avenue in Nairobi’s Central Business District.
“Due to unavoidable circumstances, we have had to close this branch. Kindly support our Tom Mboya Street branch, which remains operational,” a notice posted on the outlet’s walls read.
“Any inconvenience is highly regrettable.”
The closure has brought down the number of the retailers’ operating outlets countrywide to five: Tuskys Imara, Tuskys Athi River, Tuskys Buruburu, Tuskys Ongata Rongai, and Tuskys Oltalet Narok located in Oltalet Mall.
Tuskys Imara branch along Tom Mboya is the only remaining retailer’s outlet in the CBD.
“In light of the retailer’s exit, we expect the existing oversupply of retail spaces in the Nairobi Metropolitan Area (NMA) standing at approximately 3.0 mn SQFT to widen further,” Cytonn Investments said.
In Kenya, supermarket chains have had contrasting fortunes, with Naivas, Quickmart, Chandarana, and Carrefour continuing to expand while Uchumi, Tuskys, Nakumatt, Shoprite, Game Stores, and Choppies shutting down either through bankruptcy or exiting the market.
Knight Frank’s Kenya Market Update H2 2022, “The general performance and supply of malls in Kenya has been declining with the focus shifting to convenience centres that are closer to residential neighbourhoods.”
On the other hand, Cytonn Investments expects Kenya’s retail sector performance to be supported by the expansion drive by local and international retailers competing for dominance in the market.
For instance, local retail chain Cleanshelf Supermarket opened a new branch in Greenpark Estate along Mombasa Road, bringing the number of operating outlets countrywide to 13.
In addition, international fast-food chain ChicKing, in partnership with M/s Crispy Limited, a local franchise, opened a restaurant in Mombasa along Nyerere Avenue, the first outlet in Kenya and the East African market.
“However, the fast-paced growth of e-commerce, and the oversupply of retail space standing at approximately 3.0 mn SQFT in the NMA retail sector and 1.7 mn SQFT in the non-NMA regions, will continue to hinder the optimum performance of the retail sector.”