As Shoprite Nigeria starts a marketing campaign to spotlight its local buying, Uchumi announces its H1 results and Nakumatt receives a capital injection, we round up news from the region.
Shoprite launches ‘Made in Nigeria’ campaign
Shoprite Nigeria has launched a marketing campaign to spotlight it local buying of products. The retailer said the event, which was launched at its store in the Ikeja Mall, was as part of a set of initiatives to strengthen relationships with producers, identify product gaps, and create opportunities for local producers to raise the visibility of products and goods manufactured in Nigeria and available for export. The campaign also enables Shoprite Nigeria to underline its commitment to supporting local producers, by highlighting that over 80% of the products available in its stores are locally sourced, with less than 20% imported.
Source: Shoprite Nigeria
Uchumi sees fall in sales and losses in H1
Uchumi has said in the first half of its financial year it saw sales drop to KES1.4 bn (US$13.4m) from KES4.3 bn (US$41.0m). However, the strong drop in sales was also mirrored by a lessening in its losses, which fell to KES547.3m (US$5.2m) from KES1.0 bn (US$9.5m) in its 2016 financial year. The fall in losses was driven by ongoing cost cutting reforms and the sale of non-core assets. The decrease in its losses enabled its chief executive, Julius Kipng’etich, to say that the management team believed that it could break-even in 2018.
Discussing the fall in sales, Kipng’etich, said that it had been ‘significantly impacted by lack of optimal stock levels due to delays in funding’. Kipng’etich went on to say that the retailer continued ‘to pursue strategies aimed at stabilizing the company’s performance including sale of non-core assets, sourcing for a strategic investor, building supplier confidence and enriching customer experience at our stores’.
Nakumatt receives investment in Uganda
Nakumatt has received a US$75m capital injection into its Uganda-based operations. The money will come in two tranches: US$40m in March and US$10m in April. The new money was confirmed as part of a statement from group managing director Atul Shah. It has been generated by the sale of a 25% stake in the business from a third party. The money will enable Nakumatt Uganda to clear its debt with suppliers and service providers and enable it to build for the future in the country.
Meikles to invest to convert TM stores to Pick n Pay
At the opening of the Borrowdale shopping centre, the managing director of TM/Pick n Pay, Malcolm Mycroft, has said that the company has begun identifying existing TM stores that can be upgraded to the Pick n Pay brand. Despite the planned investment, Mycroft confirmed that the TM brand would not be phased out completely.
Engen expanding range in Zambia
As it looks to target the on-the-go shopper, Engen has said that it will continue to add to its product range at its forecourt stores in Zambia. The company has 36 stores in the country, with 16 having Quickshops and nine having a Corner Bakery. To maintain growth, its convenience sales and marketing manager, Damon Giraudeaux, has said that it will be looking to add a Chicken Corner offer to 10 further stores after a successful trial at its Chawama service station since September 2016.