- Quickmart Supermarket has opened a new outlet along the Northern Bypass Road, bringing its number of operating outlets countrywide to 56 amid rapid growth in Kenya’s retail sector
- The desire to cater to the convenience preferences of shoppers within the residential locality influenced the decision by the Kenyan retailer to open a 24-hour store in Thome
- The move is part of an aggressive expansion drive to promote the Quickmart brand as a household name among customers and increase its competitiveness against other retailers such as Naivas and Carrefour
Quickmart Supermarket has opened a new outlet along the Northern Bypass Road, bringing its number of operating outlets countrywide to 56, even as Kenya’s retail industry continues to see significant growth movements by various retailers as they strive for market supremacy.
The desire to cater to the convenience preferences of shoppers within the residential locality influenced the decision by the Kenyan retailer to open a 24-hour store in Thome.
Moreover, the move is part of an aggressive expansion drive to promote the Quickmart brand as a household name among customers, increasing its competitiveness against other retailers such as Naivas and Carrefour, and stamping its market dominance.
This comes when the formal retail penetration in Kenya is low, standing at 30.0% in 2018, coupled with gaps left by other retailers such as Nakumatt and Uchumi Supermarkets that exited the market.
Kenya’s retail sector continues to grow
The opening of the store comes weeks after local retail chain Cleanshelf Supermarket opened a new outlet. Located in Greenpark Estate along Mombasa road, Athi River, the new outlet brings the retailer’s number of operating outlets countrywide to 13.
It also comes weeks after international fast-food chain ChicKing, in partnership with M/s Crispy Limited, a local franchise, opened a restaurant outlet located in Mombasa along Nyerere Avenue, the first outlet in Kenya and the East African market.
Commenting on the development, Cytonn Investments noted that they expect the performance of the Kenyan retail sector to continue being supported by the ongoing expansion drive by both local and international retailers, as they compete for dominance in the market.
However, the experts said that the fast-paced growth of e-commerce, and the oversupply of retail space standing at approximately 3.0 million Square feet in the Nairobi Metropolitan Area retail sector and 1.7 million Square Feet in the non-Nairobi Metropolitan Areas regions, will continue to hinder the optimum performance of the retail sector.
Naivas expands as it strives to retain supremacy of Kenya’s retail sector
In a separate story, in December 2022, local retailer Naivas Supermarket opened two new outlets at Boardwalk Mall located in Parklands along Ojijo Road and at Nairobi West Shopping Centre in Nairobi West.
The two additional outlets brought the retailer’s number of operating outlets countrywide to 90. The opening came a month after the retailer opened three new outlets at Meru’s Greenwood City Mall, at Kahawa Sukari Junction, and at Ruai town.
Additionally, Naivas also opened a new outlet in Uthiru dubbed Express Uthiru, as part of the company’s rapid expansion drive.
The opening of the two new outlets in Parklands and Nairobi West could be attributed to several factors including the urge to increase its presence in new regions where the retailer had not tapped into hence offering a convenient shopping experience to customers.
The decision was also influenced by strategic locations of the outlets along Ojijo Road and within the expanse of Parklands residential area and within Nairobi West Shopping Centre hence enhancing the footfall and accessibility to the store.
An increased financial strength following the sale of 40.0% stake worth KSh 18.3 billion to a consortium comprising of IBL Group and other firms such as DEG Group and Proparco was also a factor.
Additionally, the essential aim to stay ahead of the competition and retain a superior position in the market compared to other retailers like Carrefour and QuickMart was also a motivating factor for the expansion.
The developments have contributed to the growth of the sector.
Cytonn however noted that the performance is hampered by rapid advancements in the e-commerce sector and an existing oversupply of retail spaces in Kenya of 1.7 million SQFT, which affects occupancy rates and total return to property investors.