Carrefour official Jean Yves Genies (centre) with customers at The Hub in Karen, Nairobi. FILE PHOTO | NMG
Summary
- The Dubai-based conglomerate made public its Kenya annual sales in a newly-released financial report that also quantifies its local assets as of December 2017 at Sh3.1 billion.
- Carrefour, which launched its first store in Nairobi in 2016, now operates four branches in the Kenyan capital – at Two Rivers Mall, Thika Road Mall, the Junction Mall and The Hub, Karen.
- Majid Al Futtaim’s sales in Kenya are a pointer to a highly profitable Carrefour business which, with ongoing expansion drive, could see the supermarket chain morph into a multi-billion shilling operation.
Majid Al Futtaim, the exclusive holder of French retailer
Carrefour’s franchise in Kenya, last year recorded Sh8.2 billion in
sales from its local business riding on accelerated expansion of the
supermarket chain.
Carrefour, which launched its first
store in Nairobi in 2016, now operates four branches in the Kenyan
capital – at Two Rivers Mall, Thika Road Mall, the Junction Mall and The
Hub, Karen.
Majid Al Futtaim also operates one indoor
entertainment unit, Magic Planet, that is located at Two Rivers, but the
business accounts for a small portion of the Kenya revenue.
The
Dubai-based conglomerate made public its Kenya annual sales in a
newly-released financial report that also quantifies its local assets as
of December 2017 at Sh3.1 billion.
“The group is fully focused on the Carrefour 2022 plan, with
ambitious action plans currently being implemented in all of its
geographies,” Alexandre Bompard, the chief executive of Carrefour, said
last week. “Carrefour is back on the offensive and is investing to
resume growth.”
Majid Al Futtaim’s sales in Kenya are a
pointer to a highly profitable Carrefour business which, with ongoing
expansion drive, could see the supermarket chain morph into a
multi-billion shilling operation.
The Sh8.2 billion
recorded from four branches is in line with Carrefour’s earlier
disclosure that its maiden outlet at The Hub Karen made Sh1.54 billion
in revenues in the first seven months of operation (May to December
2016).
The
supermarket chain is slowly emerging as a top alternative for customers
in the wake of fumbles by former market leader Nakumatt Supermarkets.
Carrefour,
the world’s second-largest supermarket chain after Wal-Mart — last week
announced plans to open its fifth store at Nairobi’s Sarit Centre in
April, taking over the space recently vacated by struggling Uchumi.
The
French retailer, however, faces stiff competition in this expansion
bid, with local supermarkets Tuskys, Naivas and smaller players like
Quick Mart also seemingly hungry to expand their footprint locally.
South
Africa’s Game and Shoprite have also announced plans to expand locally,
promising Carrefour a bruising battle in the marketplace.
Botswana’s Choppies, which gained a local foothold by takin
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