French based retailer Carrefour has set its sight on overtaking rival trader Naivas supermarket to become Kenya’s number two ranked chain store retailer in terms of market share.
As it stands Carrefour is the third ranked retailer in the country with a market share of 22 per cent. Supermarkets Tuskys and Naivas lead the market share rankings at position one and two respectively.
According to a news report by Reuters, Carrefour is confident of leapfrogging past Naivas into the second position by introducing more outlets and using competitive pricing to boost sales. The retailer is especially confident that it will achieve this feat because the franchise has done much better than expected by attracting a strong middle class client base ever since it set up shop in the country three years ago.
“We should certainly be number two by the end of 2019. The potential of the Kenyan market is huge because you have a booming economy, you have a growing middle class,” Frank Moreau, the Kenya Head of Majid al Futtaim (MAF), a United Arab Emirates-based mall developer that holds Carrefour franchise rights in 37 countries, told Reuters in an interview.
The franchise currently has seven outlets in Nairobi with two more expected to be unveiled in the course of the year. The franchise is also aiming to establish outlets in Uganda as it looks to embark on the expansion of its regional footprint.
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 South Africa’s Shoprite and Botswana’s Choppies.
To keep up with the competition, Carrefour has partnered with e-commerce company Jumia to roll out a platform that will allow customers to shop online. This has made it the first major Kenyan chain store to do so.
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