The largest supermarket chain in Africa, Shoprite Holdings is closing its second branch in Kenya in the span of five months, citing reduced flow of shoppers. The Retailer will also send home 115 employees.
Shoprite has written to notify the workers’ union of the closure of the City Mall branch in Nyali, Mombasa, and job cuts.
“Endeavour to continue trading at the Nyali branch is no longer viable. Financial and other data will be provided and discussed at a proposed meeting,” Shoprite said in a notice to the Kenya Union of Commercial Food and Allied Workers (KUCFW).
“It is contemplated that the intended date of termination on account of redundancy will be August 31, 2020. There are currently 115 persons employed at the branch of which 92 are members of KUCFW.”
In April, the retailer closed down Nairobi’s Karen branch, rendering 104 jobless.
Shoprite, which opened its first store in Kenya in 2018 and had targeted opening seven stores, including six in Nairobi has been retreating in countries outside South Africa and only two branches remain in the country.
When setting shop in Kenya, Shoprite said it was taking advantage of the disarray in Kenya’s retail sector. “Retail in Kenya currently is in total disarray…we could now go in and secure seven premises without paying anything other than agreed rental,” Shoprite said ahead of Kenya entry.
However, Shoprite has failed to bring any competition to cash-rich retailers such as Naivas, Quickmart and Carrefour.
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