This archive report was first published on 14 December 2019.
December 14, 2019
Nakumatt's Prestige branch in Nairobi has been a victim of the retailer's financial struggles, shutting down its operations this week. The once-thriving supermarket has been replaced by rival Naivas, which has taken over the space.
Naivas has been expanding its presence in the country, taking over spaces formerly leased to Nakumatt, particularly in Mombasa and Nairobi. The recent takeover brings the total number of Naivas outlets to 58 around the country.
Naivas has already moved into one of the spaces left by Nakumatt in Lavington, and another branch in Kisumu has been closed. The retailer's management remains mum over the shut down, which comes a year after it reopened following a financial crisis in 2017.
Naivas has taken over several spaces formerly leased to Nakumatt, including the outlet on Moi Avenue in Nairobi and the Likoni branch in Mombasa. The recent takeover brings the total number of Naivas outlets to 58 around the country.
Nakumatt's financial struggles have been well-documented, with the retailer owing suppliers, manufacturers, and landlords an estimated Ksh. 40 billion. The supermarket's rival, Tuskys, had pulled out of a deal to inject capital, casting doubt on Nakumatt's recovery efforts.
The only remaining Nakumatt stores are now in Nairobi: Mega (Mombasa Road) and Highridge (Parklands) as well as Nakuru (Westside Mall). Nakuru is where the retailer opened its first branch, but it remains unclear for how long the Westside outlet will remain operational.
A spot check by Citizen Digital on Saturday morning revealed that most of the products at the Highridge branch are on clearance sale, indicating another looming shutdown. One of the employees who spoke on condition of anonymity revealed that the store may be closing down as early as December 31.
