Naivas plans to open seven more supermarkets in 2017

Jul 7, 2017

Naivas supermarket logo

Naivas plans to open seven more supermarkets in 2017. It has shared details of new stores in Utawala and Kericho in August. It will also open two stores in Nairobi as well as stores in Kitengela (south of Nairobi) and Mountain View/Waiyaki Way (west of Nairobi) and Mombasa.

It anticipates that the average capital expenditure for each store is KSh100m ($1m). Naivas has implemented an aggressive growth strategy just as its rivals struggle with cash flow issues and debt.

Its aggressive growth plans leave it open to questions about how the family-owned company is financing growth and whether it is also repeating some of the errors Uchumi and Nakumatt have taking on too much debt and operational stretch. It should be noted, however, that Naivas does not operate any stores outside Kenya and opened only one store in 2016. Other supermarket retailers have burned cash trying to establish a wide footprint across East Africa, with little success.

 

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