World’s second-largest supermarket chain franchise in Kenya recorded USD81M in sales last year

Last week, the French retailer announced plans to open its fifth store at Nairobi’s Sarit Centre in April.

Carrefour, the world’s second-largest supermarket chain after Wal-Mart launched its first store in Nairobi in 2016, now operates four branches in the Kenyan capital; Two Rivers Mall, Thika Road Mall, the Junction Mall and The Hub, Karen.

Last week, the retailer announced plans to open its fifth store at Nairobi’s Sarit Centre in April, taking over the space recently vacated by struggling Uchumi.

Majid Al Futtaim, the exclusive holder of Carrefour’s franchise in Kenya made public its Kenya annual sales in a newly-released financial report that also quantifies its local assets as of December 2017 at Sh3.1 billion ($30m).

“The group is fully focused on the Carrefour 2022 plan, with ambitious action plans currently being implemented in all of its geographies,”Alexandre Bompard, the chief executive of Carrefour, said last week.

“Carrefour is back on the offensive and is investing to resume growth.”

Carrefour business’s sales in Kenya which comes at a time local retail chains such as Nakumatt and Uchumi are struggling to remain afloat is a pointer to a highly profitable business which, with ongoing expansion drive, could see the supermarket chain morph into a multi-billion shilling operation.

The Sh8.2 billion recorded from the four branches is in line with Carrefour’s earlier disclosure that its maiden outlet at The Hub Karen made Sh1.54 billion in revenues in the first seven months of operation (May to December 2016).

Majid Al Futtaim chief executive officer Alain Bejjani last month revealed that the business was looking at expanding into the East African region, seeking to replicate the success enjoyed in Kenya.

“With regards to Africa,...we are looking to expand beyond Kenya as well,” Mr Bejjani said in a statement.

The French retailer, however, faces stiff competition in this expansion bid, with local supermarkets Tuskys, Naivas and recently regional players like Botswana’s Choppies also seemingly hungry to expand their footprint locally.

South Africa’s Game and Shoprite have also announced plans to expand locally, promising Carrefour a bruising battle in the marketplace.

Choppies, which gained a local foothold by taking over several Ukwala Supermarket stores, also plans to open new outlets countrywide.

JOIN OUR PULSE COMMUNITY!

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke

Recommended articles

Amazing transformation of 21-year-old man bullied for being born different (video)

Amazing transformation of 21-year-old man bullied for being born different (video)

Abel Mutua's movie makes over Sh4M in 5 days

Abel Mutua's movie makes over Sh4M in 5 days

Why do guys still masturbate when they have girlfriends?

Why do guys still masturbate when they have girlfriends?

5 things you should never do to please a woman

5 things you should never do to please a woman

How Janet Mbugua's husband Eddie landed Sh240 million deal with Chinese investors

How Janet Mbugua's husband Eddie landed Sh240 million deal with Chinese investors

British MP claims she didn't know her flat was owned by the Kenyatta family

British MP claims she didn't know her flat was owned by the Kenyatta family

I spent Sh800K - Vera speaks on begging for money to fund lavish Baby shower

I spent Sh800K - Vera speaks on begging for money to fund lavish Baby shower

Shika Simu yangu bro, we need you - Eric Omondi begs Eddie Butita

Shika Simu yangu bro, we need you - Eric Omondi begs Eddie Butita

Janet Mbugua's husband thrown at the centre of nasty fight at Ole Sereni Hotel [Video]

Janet Mbugua's husband thrown at the centre of nasty fight at Ole Sereni Hotel [Video]