French retailer Carrefour has recorded a 28 percent jump in sales in 2019 to Ksh. 18.7 billion up from Ksh. 14.6 billion recorded in 2018, Majid Al Futtaim, the exclusive holder of Carrefour’s franchise in Kenya, has revealed.
Majid Al Futtaim made the disclosure in its annual financial report for the period underscoring the firm’s gamble to aggressively expand into Kenya had paid off ever since the company began operations in the country four years ago.
According to the retailer, the increase in sales in the period is as a result of the country’s rising middle class having taken a liking to the quality and affordable products offered by the vendor in its stores so much so that the company is now eyeing key markets, including Africa, to expand into.
“In 2020, Majid Al Futtaim Retail will open its first store in Uzbekistan, with plans for further expansion to new markets in Central Asia and Africa and scale up its e-commerce capacity to meet growing online demand, through innovative fulfillment solutions,” the group said in the report.
Majid Al Futtaim made public its Kenya annual sales in a newly-released financial report that also puts its local assets as of December 2019 at Ksh.7.2 billion, up from Ksh.4.3 billion in December 2018.
As it stands, the retailer currently has seven operational branches in Kenya. The outlets are strategically located at the Hub in Karen, Village Market, Two Rivers Mall, Thika Road Mall and Sarit Centre in Westlands. Carrefour had earlier announced plans to open an eighth branch on Uhuru Highway near Nyayo roundabout before March 2020 but the launch has been derailed by ongoing Covid-19 pandemic.
The collapse of local retailers such as Nakumatt and Uchumi in recent years has provided multinational retailers such as Carrefour with an opportunity to expand into the country.
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