Tuskys bets on consumer electronics with $20 million investment

Sep 28, 2018

Tuskys Electronics
Kenyan retailer Tuskys announced a $20 million investment in expanding its in-store electronics offering in a ‘shop-in-shop’ format. The leading Kenyan retailer says it is responding to consumer demand as the country’s grocery retail sector experiences significant changes.

Tuskys has invested KSh200 million ($19.8 million) in a dedicated consumer electronics department in its stores. The Kenyan retailer has announced a ‘shop-in-shop’ format for the new electronics offering that has launched in Nairobi’s T-Mall. According to the company the investment will, on a first stage, stock Tuskys outlets in Nairobi, Mombasa and Kisumu, although there is no defined timeline for the roll-out in further stores.

Dan Githua stated that the investment was made in the context of Tusky’s development strategy and according to what consumers desire. According to Mr. Githua there is a strong “consumer demand for immersive electronics stores that allow them to experience the products”. The new so-called Tuskys Multi-Brand Departmental stores will feature a variety of leading electronics brands such as Samsung, Beko, Sony, Moulinex, LG and others. The outlets will also include a beauty section and a small Apple store which will be independently operated by the local Apple reseller.

This is not the first time the retailer opts for an in-store model when expanding its offering. In November 2017, the retailer first launched its clothing brand Mavazi as an in-store shop at its T-Mall branch, before launching fully-fledged, standalone Mavazi outlets. At the moment, Mavazi already has 17 independent stores. Tuskys representatives have not confirmed if the strategy adopted with the investment in electronics that now has been made will be the same and or if the retailer will soon be launching its owned electronics brand.

The investment should be seen in the context of a significant shift in the Kenyan grocery retail sector, set in motion by the demise of leading domestic retailers such as Nakumatt and Uchumi, which have led to the forceful entry of international chains, particularly Carrefour and Shoprite. According to Trendtype’s dashboard on the Leading Modern Grocery Retailers in Kenya, after Nakumatt’s fall, Tuskys became the leading retailer in the country, in both number of stores and retail floorspace. However, Carrefour’s and Shoprite’s much larger premium stores will prove to be a tough competitive challenge for domestic retailers, including Tuskys.

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