MAL 19/17 (MARKETING AFRICA) | Page 12

STREETWISE MARKETING RETAIL IN TROUBLE By Evans Majeni F or some time now, there has been a disquiet in the retail sector in Kenya. Like all things buoyant, the period that heralded the unprecedented growth from the year 2005 eventually started showing signs of fatigue. Uchumi, the trailblazing supermarket in Kenya, synonymous with self service store in the country was the first to show signs of duress blamed largely on high level mismanagement and staff pillage. It stumbled for a while propped up by government subsidies before going into limbo. Next was Tuskys that hit the headlines for all the wrong reasons - a disagreement amongst the brothers. The court battle that followed exposed the soft underbelly of family owned enterprises and attendant ego fights. To date, Tuskys have closed several prime branches within the city giving what would easily pass more as excuses than actual reasons for the closures. As Tuskys was embroiled in court battles, Naivas, the new kid on ‘‘While many theories are being advanced as to the reasons why our supermarkets are struggling, from a marketing perspective, it is imperative to look at the the drop in value per basket for every shopper as the main driver of this catastrophe. The rise in inflation, fall in general income levels with a consequent drop in basket values is the immediate trigger of supermarket struggles. We must therefore trace and confront the factors that are driving this falling income. 10 MAL 19/17 ISSUE the block was having a free run conquering new markets. Until a suitor from SA came to the scene with a juicy offer to purchase the chain store. Expectedly, sibling rivalry in the nature of shareholding dispute once again reared its ugly head to frustrate this bid. Around the same time, Ukwala, which had been on an expansion craze also appeared to hit a rock somewhere. They quickly made a deal to sell to a South African chain store - Choppies. Amidst all this turmoil, Nakumatt remained the poster boy of a model chain store. They continued their expansion foray into the region going all the way to Uganda, Tanzania and Rwanda. On the sidelines, grapevine was ripe about its internal challenges key among them being staff disaffection and supplier frustration with slow payments. This however did not dent their enthusiasm. Nakumatt still led on all fronts. They pioneered the mega stores with in-house coffee houses. Led in in-store promotions and stocking by independent suppliers expanding