As a market driven economy, we should let Nakumatt succumb to the elements so that whoever is playing their cards right can just take their spot. There has to be a silly decision someone made somewhere in their ranks and every player should understand that decisions have consequences.
Nakumatt in bungoma was destined to collapse; coz they targeted the high class but wabukusu apana tambua hiyo. secondly it was located a walking distance from CBD or stage. Khetia is doing well but Naivas I’m betting on them to overtake the 3 branches of khetia in bungoma.
it was a very bold move by nakumatt to move into areas outside the ‘cash belt’ big retail in kenya can only be supported in nairobi and mombasa, maybe overtime devolution will make it attractive for guys with capital to move away from nairobi.
currently you have a scenario where we have the likes of akina awuori, mdvd na wengine, retiring in nairobi, kama wazee wamekatalia nairobi na hio pesa yote there is no hope currently for areas outside nairobi being attractive especially for big retail investors.
In each supermarket chain almost half of their branches do not break even. They expand for the presence/footprint bullshit. As for Nakumatt i foresee Nakumatt Diani, Kericho, Lifestyle, Wendani, Lavington and many more to close.
Big retail investors, you can’t compare nakumatt with the local area supermarkets in terms of choice and scale, people will always buy the necessities and thats what the smaller supermarkets come in to cater for. for instance if you open a supermarket and stock say ketepa basic na broadways you will do well since you are sure anywhere in the country those will move, but ukiongeza twisted bread akina croissant, stock ketepa gold, sijui premium egyptian tea, weka herbal tea and the likes then you quickly realize you can only manage such in very few areas in kenya.
If you are going into big retail you need numbers and decent cashflow in an area for it to be successful, and that is what is missing in areas outside nairobi and mombasa