Kenyan retailer Nakumatt plans to buy South Africa’s Shoprite’s three stores in Tanzania as it moves to secure a bigger share of a large, untapped market.
Nakumatt started off with rural shops two decades ago and has grown into a chain with 44 stores across the region. It has also pulled in global groups including Wal-Mart into Africa’s retail sector.
Wal-Mart bought South Africa’s Massmart in 2011.
“Although Tanzania is the second-largest economy in east Africa, it is not very well covered by Kenyan retailers, which have traditionally focused on their domestic market and neighboring Uganda,” reports iOL.
According to Nakumatt Managing Director Atul Shah, the company aims to take over two Shoprite stores in the Tanzanian commercial capital of Dar es Salaam and a third in the northern town of Arusha.
The company has stores in Kenya, Uganda and Rwanda, as well as one outlet in the Tanzanian town of Moshi.
With annual sales expected to reach $650 million by the end of its financial year next month, it is Kenya’s largest retailer,
Shoprite is selling its Tanzanian operation to focus on its operations spread around the continent.
