Kenya’s retail landscape is driven by the growing desire for convenience among shoppers.
According to Knight Frank’s East Africa Retail Market Infographics – Q1 2024, supermarket chains are revamping their strategies, ditching the traditional mall model in favour of establishing a presence directly in residential neighbourhoods.
This shift is a direct response to changing consumer habits. Consumers are prioritising convenience, opting for quick grocery runs and everyday essentials closer to home. This trend is further fueled by a rise in cost-conscious shopping, making nearby supermarkets a more attractive option compared to distant malls.
Previously, supermarkets catered primarily to affluent neighbourhoods within large shopping malls. These malls were often distanced from the majority of urban residents.
“However, evolving consumer spending behaviours, marked by a preference for convenience, have compelled retailers to establish their presence in residential areas.
“This shift, coupled with reduced disposable incomes and the surge in e-commerce, is prompting retailers to recalibrate their customer outreach strategies,” read the report in part.
The report highlights a broader trend towards convenience retail across Kenya, not just for supermarkets. This aligns with the national preference for smaller, more accessible shopping options.
In addition, it acknowledges the surge in e-commerce, another factor influencing how Kenyans shop. While the information focuses on physical stores, it suggests that retailers need to consider a multi-channel approach to cater to a more digitally engaged consumer base.
Market Outlook
Despite the shift towards convenience retail and potential oversupply in some areas, the report maintains a positive outlook for Kenya’s retail sector.
Strong economic expansion, diminishing inflation, and consistent unemployment figures are expected to bolster consumer spending, ultimately benefiting retailers who adapt to evolving preferences.
