This archive report was first published on 1 September 2021.
South African retail giant Massmart has announced plans to sell its three stores in Kenya, marking the latest of a string of retreats from East Africa by a Southern African firm.
According to a statement by Massmart chief executive Mitchell Slape, the company has begun a formal sales process to divest in five Game stores in Nigeria, four in Ghana, three in Kenya, one in Uganda, and one in Tanzania.
Massmart, majority-owned by American super chain Walmart, made its debut in Kenya with Game Stores in 2015 with its first store at the Garden City Mall, to cash in on the growing demand for retail outlets in the country.
However, the company has faced challenges in the Kenyan market, with high unemployment and falling disposable incomes amid the Covid-19 pandemic affecting consumer spending.
Massmart's planned exit follows previous similar exits of South African retailers Shoprite and their Southern Africa peer Botswana-based Choppies, which had entered the market by acquiring a majority stake in a struggling local retailer in 2016.
Massmart's senior vice-president in charge of corporate affairs, Brian Leroni, assured that the interest of workers and suppliers would be safeguarded in the exit plan.
"We are still in the early stages of this process and are therefore not in a position to comment definitively about a specific way forward," he said.
"Please be assured though that we will act with integrity and in a responsible manner that is respectful of our commitments to our staff, business partners and customers."
