Nakumatt closes down Haile Selassie branch and freezes hiring
Several of its poorly performing branches in Kenya and Uganda are set to be closed down.
According to Nakumatt Holdings Managing Director, Atul Shah, the new operating strategy has been developed to provide a recovery platform for the firm and replaces the Nakumatt 2.0 strategy.
The accelerated restructuring phase will see the retailer actively manage and reduce its total cost base by up to Kshs 1.5billion annually.
As part of cost cutting measures, the firm plans to only retain frequently purchased items and delisting slow moving products.
Several of its poorly performing branches in Kenya and Uganda will also be closed down.
“The branch culling strategy will start off with sub optimally performing branches for whose leases contracts are due for renewal to be followed by branches in poor locations,” shah explained.
Adding that, “We have also embarked on a shelf stocks optimisation programme to enable us retain a lean variety of profitable retail products.”
The first casualty of the closure is the struggling Nakumatt Haile Selassie branch located at KU Plaza which is set to be closed down and the space reverted back to Kenyatta University by the end of this month.
The closure of Nakumatt Haile Selassie will be the third closure to be undertaken by the retailer in recent months following similar developments at its former Nakumatt Ronald Ngala and Nakumatt Katwe in Nairobi CBD and Kampala, Uganda respectively.
The firm has also adopted a group wide freeze on new staff signings, opting to absorb and progressively deploy staff from recently closed branches to its existing and upcoming outlets.
All the employees previously assigned to work at Nakumatt Ronald Ngala have already been absorbed at other Nairobi branches.
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Staff members currently serving at Nakumatt Haile Selassie, will be absorbed at other Nakumat branches ahead of their re-deployment to upcoming branches including, Nakumatt Embakasi at the new Southfield Mall.
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