This archive report was first published on 4 August 2020.
Published on August 4, 2020, Shoprite Holdings, Africa's biggest supermarket chain, is set to exit the Kenyan market after shutting its Nyali Branch in Mombasa, laying off 115 workers. This move comes just three months after it closed its Waterfront branch in Karen, putting 104 individuals out of work.
The South African-owned retailer has already notified the Kenya Union of Commercial Food and Allied Workers (KUCFAW) and invited them for a consultative meeting on Wednesday, with terminations set at the end of the month. According to the notice signed by Human Resources manager Carolyne Walubengo, the branch's viability has been compromised.
There are currently 115 people employed at the Nyali branch, of which 92 are members of KUCFAW. Walubengo noted that the branch will cease trading operations on a sooner date but employees will continue to provide services until the termination date.
Shoprite, which has a presence in 15 African countries, opened its first store in Kenya in 2018, aiming to take advantage of the gaps in Kenya's retail sector after the collapse of top supermarkets including Uchumi and Nakumatt. However, the coronavirus pandemic and other factors have worsened retailers' woes, heavily reducing footfall.
Foreign retailers such as Shoprite have been complaining that landlords are demanding dollar-based rents, further exacerbating their struggles.
