Shoprite set for Kenya entry | Fin24
 
  • Covid-19 Money Hub

    The hub will help answer your business and money questions during the coronavirus crisis.

  • Cigarettes

    The tobacco ban is a 'deal with the devil' that undermines transformation, say lobby groups.

  • Easing the Lockdown

    Liquor makers want bars to become drink-collection points when the alcohol ban lifts.

Loading...

Shoprite set for Kenya entry

Oct 30 2017 09:04
David Herbling, Bloomberg

(iStock)

Company Data

SHOPRITE HOLDINGS LIMITED [JSE:SHP]

Last traded 105
Change 2
% Change 2
Cumulative volume 1751605
Market cap 0

Last Updated: 01/01/0001 at 12:00. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

Tru-Cape delivers over 20 million cartons to Shoprite Group

Shoprite opens 14 new stores in one week

Whitey Basson: What retirement? Wiese still calls me all the time…

Shoprite guilty of reckless lending, fined R1m

Shoprite buys back R1.75bn of shares from ex-CEO Whitey Basson

Steinhoff won't hamper Shoprite success - CEO

 

Johannesburg - Shoprite Holdings [JSE:SHP] is in talks to open its first stores in Kenya by filling retail space left empty by the struggling Nakumatt Holdings chain.

“We are currently in talks with some of the property owners but nothing has been signed,” Shoprite director Gerhard Fritz said in an emailed response to questions. Africa’s biggest food retailer is awaiting the outcome of merger talks between Nakumatt and local rival Tusker Mattresses before deciding whether to proceed, he said.

Taking over vacated outlets would be the preferred way for the Cape Town-based company to enter East Africa’s largest economy as the retail market there is “too well established” to build new stores, said Fritz, who runs Shoprite’s African operations outside its home market.

The move would represent a major step in the expansion of Shoprite as it seeks to strengthen its position outside South Africa, where consumer confidence has been weak because of sluggish economic growth. The grocer had 2 689 stores in 15 countries across the continent at the end of its last fiscal year, according to its annual report.

Shoprite faces competition in Kenya from retailers including Game - owned by South African retailer Massmart Holdings, which in turn is controlled by Wal-Mart Stores - Carrefour of France, run by franchise holder Majid Al Futtaim Holding, and Choppies Enterprises of Botswana. Local grocers include Chandarana Foodplus Supermarkets and Naivas Supermarkets.

For its part, Nakumatt has shut more than a dozen branches in Kenya, Uganda and Tanzania as East Africa’s biggest retailer struggles to pay suppliers and owes more than 30 billion Kenyan shillings ($289m) to creditors. Chief executive officer Atul Shah, whose family controls the Nairobi-based company, said last month he was in talks with Tusker, which trades under the Tuskys brand.

Shoprite also plans to buy two Nakumatt sites in Uganda, Fritz said. The South African company’s shares closed 0.9% higher at R207.49 rand on Friday in Johannesburg, valuing the grocer at R123bn.

shoprite  |  retail
NEXT ON FIN24X

 
 
 
 

Company Snapshot

Voting Booth

How has Covid-19 impacted your financial position?

Previous results · Suggest a vote

Loading...