Browsing: Tuskys

Kenya's ailing retailer Tuskys shareholders opt for equity investor

For almost two decades, Kenya’s retail store Tuskys has dominated the market establishing itself as an alternative space for shoppers who looked for quality at an affordable rate. However, two years ago, the retail store has seen a downward trend with increased competition from online based stores as well as the rise of foreign stores like Carrefour and the Game.

The company has been unable to meet its financial obligations including paying suppliers and other debtors. This situation has been severe making the Competition Authority of Kenya to come in and scrutinize the accounts of the retailer.

The Authority issued Prudential and Reporting Orders to Tusker Mattresses Limited (Tuskys), requiring it to submit records revealing the full extent of debt owed, financial statements and records, sales forecasts, among others.

Now, the retailer shareholders through Orakam, the retailer parent company have released a statement describing their path to recovery. This includes …

Investigations into Abuse of Buyer Power in the Retail Sector Investigations by the Authority into Abuse of Buyer Power incidences within the retail sector focusing on twenty-five mid and large retailers, and which commenced in late April 2020, determined that four retailers had delayed payments to their local suppliers for a period exceeding ninety days.

In a statement released by the Competition Authority of Kenya (CAK) has noted that three of the four retailers, upon engagements with the Authority, presented payment plans which are being honored as agreed, thereby progressively reducing their debt portfolio as confirmed through compliance checks. Further, the Authority issued Prudential and Reporting Orders to Tusker Mattresses Limited (Tuskys), requiring it to submit records revealing the full extent of debt owed, financial statements and records, sales forecasts, among others.

Also Read:New rebirth for Kenyan retail sector as foreign capital flows in

“The Authority further required Tuskys …

The Kenyan retail market has not been very kind for foreign investors. Botswana’s Choppies Supermarket came with a promise of adding a sparkle to an industry that was adapting to the advent of online shopping in Kenya.

At that time, Nakumatt Supermarket- the most profitable and successful store in East Africa was in deathbed and the sector was looking for the new supremo. It did not go so well for the South African retailer and it has been riddled with debts and poor sales.

Another South African outfit, Game has struggled to make an impact with just a few stores. The only foreign store that has a greater impact in the Kenyan market is Carrefour which has grown from a single store to taking over space formerly occupied by Nakumatt.

The remaining local supermarket chains have had to come up with innovative ways to stay afloat in a sector that …