Tuskys Supermarkets has closed its branch located on Sheikh Karume Road in Nairobi.
According to the company's chief executive, Dan Githua, he declined to comment on the reason behind the closure of the branch, which was one of the largest stores with multiple floors.
Mr Githua stated, "No comment for now," when asked about the closure. The shutdown reduces the number of Tuskys stores in Kenya to 54.
In December 2013, Tuskys lost its store next to the Fire Station along Tom Mboya Street in Nairobi to rival Eastmatt due to a failure to agree on lease terms with the landlord.
The retail industry faces challenges in maintaining prime locations with high foot traffic, which can impact profit margins. Retailers are also dealing with issues such as finance costs and supplier debts, leading to stockouts and financial difficulties for some businesses.
A research report by Kestrel Capital indicates that retail and grocery stores in Kenya typically earn a return on sales of between one and three percent, highlighting the need for effective cost management.
Additionally, Kenyan retailers owe manufacturers approximately Sh40 billion in unpaid dues, with some payments dating back to 2014, according to a lobby group representing manufacturers.
The recovered account cited reporting by Nairobi News.
