This archive report was first published on 22 October 2019.
Naivas, a family-owned business, has managed to maintain a professional edge in the retail space by hiring talent to scale up its operations. The company boasts a network of 56 branches across the country.
Naivas' growth strategy involves expanding its branches in strategic towns and scaling up its food market concept, which it pioneered in 2017. The concept, inspired by international supermarket chains like Eataly and Wegmans, focuses on customer experience.
According to Willy Kimani, Naivas' Chief Commercial Officer, the company's research showed that customers prioritize convenience, leading Naivas to design its stores with easy navigation, fast payment processes, and a fully-fledged e-commerce site.
The food market concept allocates 25% of the store size to fresh food departments, more than double the standard allocation in other supermarkets. This strategy has proven viable, with over 60% of shoppers visiting shopping areas for food items.
Naivas plans to open three additional food market stores, including two in residential areas and one in Nyali, Mombasa. The company is also refurbishing its Mountain View Westlands branch.
Implementing the food market concept requires significant capital expenditure, with Naivas incurring nearly 40% more costs to achieve the desired interior design and produce freshness.
Naivas believes that customer experience is a key differentiator in the retail industry, and its food market strategy is an integral part of this approach. The company is confident in its ability to compete with foreign and local brands, citing its excellent product and family brand reputation.
