This archive report was first published on 6 August 2020.
Shoprite Holdings, Africa's largest supermarket chain, has announced the closure of its second store in Kenya in just five months. The retailer cited reduced shopper traffic as the reason for the closure.
The City Mall branch in Nyali, Mombasa, will be shut down, affecting 115 employees, including 92 members of the Kenya Union of Commercial Food and Allied Workers (KUCFW).
According to a notice sent to the union, Shoprite stated that 'endeavour to continue trading at the Nyali branch is no longer viable.' The retailer plans to provide financial and other data at a proposed meeting.
The closure is the second in Kenya for Shoprite in 2020, following the shutdown of its Nairobi branch in April, which left 104 employees jobless.
Shoprite had initially targeted opening seven stores in Kenya, including six in Nairobi, but has since retreated from countries outside South Africa, leaving only two branches in the country.
When entering the Kenyan market in 2018, Shoprite had expressed optimism about the retail sector, stating that 'retail in Kenya currently is in total disarray...we could now go in and secure seven premises without paying anything other than agreed rental.'
However, the retailer has failed to bring significant competition to established players like Naivas, Quickmart, and Carrefour.
Published on August 6, 2020, by Kenyan Business Feed.
