Quick Mart and Tumaini Self Service, two local Kenyan retailers, are set to merge after the Competition Authority approved the process. Tumaini Self Service Limited sold a majority of its stake to Sokoni Retail Kenya in December 2018, and Quick Mart at an undisclosed amount.
“Quick Mart and Tumaini Self Service announce that their respective board of directors have authorised the commencement of a merger and business integration of the two companies. This follows the approval by the Competition Authority of Kenya on August 26,” reads a joint statement issued by Quick Mart managing director Duncan Kinuthia and his Tumaini counterpart Moses Nditika.
The merged entity will operate under the Quick Mart brand name.
Quick Mart supermarket owns 11 stores and Tumaini Supermarkets has 13 creating a network of 30 stores at the end of 2019.
Mr. Peter Kang’iri has been appointed Group Chief Executive and managing director to oversee the transition and implement business strategy and expansion which is projected to take 12 months after the legal merger takes effect.
According to Knight Frank the first half of 2019, international retail brands continued to expand in the Kenyan market, with Turkish fashion brand LC Waikiki opening new outlets at The Junction, TRM and Sarit Centre. The new phase of Sarit Centre also attracted other major international brands such as Swarovski and Miniso.
Over the review period, French retailer Carrefour fully opened in both The Junction Mall and Sarit Centre having previously operated temporary outlets in the two malls.
Carrefour announced that in line with its expansion plans, it expects to open an additional store in the second half of 2019 on Uhuru Highway by taking over the space vacated by Nakumatt Mega.
“The retail market is expected to record improvement in consumer spending over the second half of 2019 following the Central Bank of Kenya’s announcement on 1st June to demonetise the old Ksh 1,000-note, which is anticipated to boost money circulation in the market as one of the effects,” said Knight Frank in its Kenya, Market Update – 1st Half 2019.
“The sector has seen swift expansion drives by international retailers, reaffirming Kenya’s attractiveness to foreign investors, which is a factor of: (i) stable economic growth, and (ii) relatively low formal penetration at 35.0% despite a growing middle class, and thus, disposable incomes,” according to Cytonn Investments who state that for developers and property managers, the entry of strong anchor tenants is an added advantage as it drives footfall into a mall, and this, in turn, attracts other retailers.
“In our view, therefore, this will have a positive impact on the performance of retail real estate developments, where we currently estimate an oversupply of 2.0 mn SQFT.”