The retail sector is rapidly evolving, with new supermarket chains stepping up to fill the gaps left by former giants.

Over the years, household names like Nakumatt, Uchumi and Tuskys once dominated the retail sector but ultimately collapsed under financial pressures, including debts and bankruptcies. The situation worsened during the Covid-19 pandemic, which accelerated their decline.

However, recent years have seen a resurgence in Kenya’s retail sector, with supermarket chains like Quickmart, Carrefour, and Naivas leading the way. This recovery has been steady, with the industry experiencing growth and stable returns post-pandemic.

More outlets opening
According to Cytonn’s Kenya Retail Report, as of July this year, local and international chains have opened over 10 new branches, bringing the total to 244 supermarket branches across Kenya.

At the opening of Carrefour’s latest branch, Wambui Mbarire, CEO of the Retail Association of Kenya (RETRAK), commended the expansion as Carrefour, operated by Majid Al Futtaim, opened its 25th store in Runda Mall.

“We’ve seen a lot of transformation with the new entries, the old entries, new branches, old branches being revamped across the sector. So, we really do aim to serve our customers all the time and give them the best offers of course. Especially considering the economy right now,” Mbarire said.

With major players scaling up operations and fostering local partnerships, Kenya’s retail sector seems poised for a sustained recovery, promising a brighter future for both consumers and businesses alike
Regional Director Christophe Orcet highlighted Carrefour’s commitment to local partnerships, especially with farmers, as the supermarket sources 99 per cent of its products within Kenya.

Orcet further announced that Carrefour plans to open another store within three weeks, with three additional branches anticipated by December.

Stimulating economy
Naivas has also been on an aggressive expansion spree, launching its 106th branch in Mtwapa in September, following the opening of another outlet in Mombasa. In the first half of the year, Naivas strategically opened five branches along high-traffic areas like Thika Superhighway and Lang’ata Road, catering to a growing demand along these key routes.

Quickmart similarly strengthened its presence, opening its 60th store in Narok, while Carrefour launched its 23rd store at the GTC Mall in Westlands. New players in the market are also making strides.

International retailer China Square recently opened a new outlet in Lang’ata, taking over space previously held by Uchumi, while Jaza Store launched branches in Chokaa and Gachie. Global retailer Panda Mart opened its first Kenyan outlet in Garden City Mall, with plans for further expansion in high-traffic areas.

The revival of Kenya’s retail sector is a welcome economic boost, creating jobs and restoring some of the income lost from the collapse of former retail giants. The expansions signify a positive shift, helping to stabilise the industry and stimulating growth in the broader economy.