Tuskys Supermarkets to open more small retail outlets in petrol stations

A Tuskys Supermarket outlet at a Shell petrol station on Heile Selassie Avenue in Nairobi. Photo/SALATON NJAU

By DAVID HERBLING

IN SUMMARY
The retail chain last week opened a store on Haile Selassie Avenue at a Shell gas station, offering fast moving goods like milk, bakery products, groceries, toiletries, and soft drinks.
They are using the shop as a test before a national rollout for a chain that has been known to have a bias for mega- stores.

Tuskys Supermarkets is targeting to open small shops at locations like petrol stations to grow sales and capture a market currently served by kiosks and dukas.

The retail chain last week opened a store on Haile Selassie Avenue at a Shell gas station, offering fast moving goods like milk, bakery products, groceries, toiletries, and soft drinks.

They are using the shop as a test before a national rollout for a chain that has been known to have a bias for mega- stores.

“The Haile Selassie store is a pilot and our plan is to introduce more of these stores,”’ said marketing manager Peter Mbatia.

“We are targeting people who buy small things on the go and who might not reach the malls due to traffic challenges or are on the way home and forgot to pick a product at bigger shops.”

Tuskys will be joining a trend of global retail chains like Walmart and Tesco’s that are building more small shops than their trademark “big box” stores as consumers demand for more convenience increases.

The small-store portfolios in the western capitals is response to socio-economic shifts, including consumers’ reluctance to drive long distances to shop and the movement of people back to city centres.

Tuskys is banking on these convenience stores aptly dubbed ‘Chap Chap’ to grow sales by offering high-volume products that are frequently purchased, mostly in small units.

It already has seven ‘Chap Chap’ stores in Nairobi at Muindi Mbingu Street, Ongata Rongai, Matasia, Woodley Estate, Express along Sheikh Karume Rd, Adams Arcade and Thigiri.

But it’s now seeking the retail spaces on petrol stations, which will cut the branch opening costs while widening the retailers, reach as well as ease the search for big retail space.

Tuskys has 52 branches and reported sales of Sh25.2 billion in 2011, which are now estimated to have grown to nearly Sh50 billion.