Retailer Uchumi Supermarkets has announced plans to make a comeback after five years of closure. CEO Mohamed Ahmed made the announcement and said that the former retail giant has embarked on a plan to win back suppliers and small traders to help stage the comeback mainly in restocking its stores.
While it has lost most of its formerly occupied spaces in malls and key installations, the retailer which had a network of about 40 stores in Kenya, Uganda and Tanzania has restocked its few operational outlets hoping to regain footing and expand. It currently has four stores in operations.
At the Lang’ata Hyper, vendors are allowed to sell their wares during the weekends by renting out spaces, a new concept the retailer has come up with. It expects to derive income from renting out the spaces whose charges range from Sh2,500 for smaller spaces to Sh10,000 for premium spots. It has also replenished the store making it one of its well-stocked outlets.
โLangโata has been reopened and is fairly well stocked. We continue to work with suppliers and distributors to improve our offerings,โ said CEO Mohamed.
Struggle with capital
The Nairobi Securities Exchange-listed retailer has been struggling with capital since 2019, with efforts to sale off some of its assets to raise working capital proving difficult. These include a 20-acre prime parcel of land located near the Thika Road Mall where it is locked in an ownership dispute with the Kenya Defence Forces (KDF) which has laid claim to the parcel, and has moved its equipment on site.
While the CEO also admitting suppliers have been reluctant to trade with retailers in recent times, especially with the collapse of Nakumatt and the financial troubles hounding Tuskys, he said Uchumi has streamlined operations to ensure prompt payment.
โThis is giving confidence in Uchumi amongst our suppliers. Our focus is to stabilise the business by working with our various partners,โ said Mr. Mohamed.
