This archive report was first published on 24 July 2019.
On July 24, 2019, South African retailer Game Stores made its mark in Kenya by opening its third outlet in the country, specifically at Kisumu's Mega City Mall. This move signifies the company's expansion beyond Nairobi, where it had previously launched its Garden City and Karen Waterfront outlets.
Game's new branch in Kisumu will occupy prime space on the ground floor of the mall, a spot previously held by Nakumatt, which has struggled to maintain its market share in recent years. The troubled retailer has lost nearly all of its prime locations to competitors, signaling increased competition in the market.
Kenya's retail market is one of the most developed in sub-Saharan Africa, with about 30 percent of retail shopping being done in formal outlets, according to a Citigroup study. This has attracted the attention of global chains, including Game, which aims to capitalize on the growing demand for formal retail services.
Indigenous investors in the supermarket sector have enjoyed a significant market share, with 25 key players operating in the market, as indicated by the Retail Trade Association of Kenya (Retrak). In the last two months, several local investors have expanded their presence in the market by opening new supermarket branches, including Tuskys, Naivas, Quickmart, Magunas, Rams, Souk, and Lemigo Kisumu.
