Nakumatt Supermarket books space in Dar es Salaam mall

Corporate News

Nakumatt plans to open a new store in Dar es Salaam, Tanzania. FILE PHOTO | NATION MEDIA GROUP 

By SIMON CIURI

In Summary

• Nakumatt has four branches in Tanzania, while Uchumi has five.
• Retailer has booked space at Penninsula Plaza in Dar es Salaam – an upcoming mall expected to be completed later this year.
• The retailer will spend Sh350 million internal cash to stock the outlet and it will hire about 100 staff.

Nakumatt Supermarket has booked space in an upcoming mall in Dar es Salaam, stepping up market share fight with Uchumi following last year’s exit of South African retailer Shoprite.

Nakumatt has four branches in Tanzania, while Uchumi has five.

Shoprite sold its three Tanzanian stores to Nakumatt at a cost of Sh3 billion.

READ: Nakumatt takes over first Shoprite store

Nakumatt opened its first outlet in Tanzania in 2011 at the 34,000-square feet Nakumatt Moshi outlet.

Thiagarajan Ramamurthy who is the retail chain’s head of strategy and operations, told Business Daily in an interview Thursday that the retailer has booked space at Penninsula Plaza in Dar es Salaam – an upcoming mall expected to be completed later this year.

Nakumatt will be the anchor tenant taking 25,000 square feet.

The retailer will spend Sh350 million internal cash to stock the outlet and it will hire about 100 staff.

“The focus is to widen our growth path by opening more outlets both at home and in the regional markets and increase our revenue,” said Mr Ramamurthy.

“Dar es Salaam is a lucrative market given its population and its shopping trends,” he added.

Uchumi supermarkets chief executive officer Jonathan Ciano said the retailer is scouting for premises in Dar es Salaam to increase its presence in the Tanzanian capital.

“Dar es Salaam in Tanzania is one of the places we are seeking to open more outlets in our growth plan including Rwanda where we are foreseeing good market prospects,” said Mr Ciano.

Uchumi plans to have seven outlets in Tanzania by next March, according to the CEO.

He said in February the retailer will be opening the sixth branch in  Moshi, Tanzania, which will be its first branch opening after close of the rights issue  that saw the retailer  raise  Sh896 million last year.