In a bid to augment its ambitious expansion into the East African market, French Retailer Carrefour is set to open its premiere outlet in Uganda.
Uganda’s first Carrefour outlet will be established at the Oasis Mall in Kampala and its establishment is consistent with the retailer’s April announcement that indicated the firm was eyeing a larger piece of the East African market.
The outlet according to a news report by the Business Daily will offer employment to approximately 150 Ugandan locals and it will stock food, electronics and other household items.
“Uganda is considered one of the fastest growing economies in Africa, and we are delighted to partner with local stakeholders to offer a world-class retail experience to the Ugandan community, specifically tailored to their needs. This announcement brings us a step closer towards realizing our long-term expansion plan for East Africa,” Hani Weiss, the CEO of Carrefour’s mother company Majid Al Futtaim, is quoted as saying by the Business Daily.
The franchise currently has six outlets in Nairobi with two more expected to be unveiled in the course of the year. The outlets are located at the Junction, Hub, Village Market, Two Rivers, Thika Road, Sarit Centre and Galleria Malls.
Despite the collapse of local retailers such as Nakumatt and Uchumi Supermarket, Kenya’s retail store sector has been growing steadily over the past few years and this has been attributed to a rising middle class. The business opportunity has attracted continental brands such as Carrefour, South Africa’s Shoprite and Botswana’s Choppies.
After initially entering the Kenyan market in 2016 Carrefour has succeeded in establishing itself as a major player in Kenya’s retail sector. As it stands, the franchise is the third ranked retailer in the country in terms of market share behind local supermarkets Tuskys and Naivas. According to the retailer’s 2018 financial report, its annual sales grew 71 per cent to US$ 137.71 million up from US$ 80.52 million that was recorded in 2017. This signals that the firm’s aggressive expansion into the East African market is paying off.