Kampala, Uganda | ISAAC KHISA | South Africa’s retail chain, Shoprite, has taken up the advantage of the exit of Kenya’s biggest retail chains to cement its foot print in Kampala.
Two of Kenya’s top retail chains – Uchumi and Nakumatt –exited the Ugandan retail chain market in the past three years.
Property agency, Knight Frank, said in its latest property market report that the retail chain is set to open a new outlet at Bugolobi Village Mall in December this year.
This development comes barely six months since the retail chain took over three Nakumatt stores: In Acacia Mall in Kamwokya, Victoria Mall in Entebbe and the Village Mall at Bugolobi. The space is managed by Knight Frank.
Initially, Shoprite, which had three outlets, had scaled down to only two in the past three years– at Lugogo and on Ben Kiwanuka Street.
However, the firm has this year embarked on a rapid expansion to fill the gap created by the exit of Kenya’s retail chains that had a combined 14 outlets.
Shoprite’s latest expansion is set to tighten competition with local retail chains such as Quality Supermarkets and Mega Standard Supermarkets.
Shoprite, which is 17% owned by retail tycoon Christo Wiese, has grown from eight supermarkets in 1979 to a no-frills mass-market grocer with operations in 15 African countries.
Last year, the retail chain recorded a 3.3% growth in turnover to about 145.6 billion rand ($10.90 billion) in the 12 months to June 2018.