Struggling retailer Nakumatt Supermarkets shuts down outlets in Busia, Bungoma

Nakumatt City Hall in Nairobi. PHOTO: David Njaaga /STANDARD}

Struggling retailer Nakumatt Supermarkets has shut down its outlets in Busia and Bungoma. This brings to five the number of branches the company has closed indefinitely this month.

The retail chain early this month said in a notice that it would close its branch at the Westgate Mall beginning October 8, without an indication as to whether the outlet would re-open.

Others that have suffered the same fate in the recent past are the Mlimani City branch in Dar es Salaam and the Junction Mall outlet in Dagoretti.

Proposed merger

The retailer has, however, contested its eviction from the Junction Mall in court, with the ruling is expected on Wednesday.

A Nakumatt Holdings official, who declined to be named, said yesterday the closures were planned and part of a branch culling exercise that was announced earlier this year.

Other than the planned closures, however, there have been instances where the retailer has been forced out of certain outlets mostly due to non-payment of rent.

Among the branches that the retailer has vacated and have immediately been snapped up by competitors include its Mombasa Road outlet at NextGen Mall and at Thika Road Mall (TRM). Nakumatt and Tuskys are in talks over the possibility of a merger that could give a lifeline to the once flourishing retailer.