Nakumatt in Tanzania offer

DAR ES SALAAM, Tanzania - Regional retailer, Nakumatt Holdings, has said it is ready to partner with the government in advancing retail business development in the country.

Nakumatt has opened what will be its flagship store in Tanzania at Mlimani City Mall, to be known as Nakumatt Mlimani.

Janet Mbene, the Deputy Minister for Industry and Trade, graced the event as the chief guest last week.

Nakumatt Holdings managing director, Atul Shah said by opening their latest store in Dar Es Salaam, “We are also sending out a strong signal that Nakumatt will continue playing its role as a development partner with the people and government of Tanzania.

“Nakumatt will be available to partner with your ministry in driving the retail development agenda forward,” he said. Nakumatt opened their first store in Moshi three years ago.

Mbene said,“There is a need for other investors to join hand with the government so as to assist the implementation of retail development in the country.”

This is the first of three planned stores to be opened in the neat futurwe after the exit of South Africa’s Shoprite.

Construction is ongoing at the proposed Nakumatt Pungu Road; in Dar Es Salaam, which will also house its Tanzania headquarters and Nakumatt Arusha.

Shah said they recognize the role played by thr trade ministry which is particularly critical for formal retail development.

However Shah reminded invited guest and staff members the penetration of formal retail is still low across sub-Sahara Africa. It averages 14%, yet it has an addressable potential of up to 90%.

“The transition rate from informal to formal is also regrettably too low at an average rate of less than 10%, he said.

“This means that a vast majority of informal traders are not growing to their full potential as entrepreneurs. Within the wider marketing mix, this can be attributed to wide range of issues including the constant lack of government policy on retail trade development in many countries,” he said.

Shah said the opening of the three new stores upgraded at a cost of abiout $3 million, is part of the retailer’s regional expansion plans.

“The opening also sets the stage for our 50th branch opening by mid-August which will be a key milestone as we will have achieved our Nakumatt 2.0 Strategy goal a clear six months ahead of the February 2015 target,” Shah said.

Alongside the opening of the three Tanzania stores, Nakumatt is also gearing up for the opening of three new stores in Kenya by the end of the year.

Earlier this year, the mass retailer opened outlets in one of Kampala’s newest shopping malls and a second in Entebbe.

Nakumatt, will also be taking up space as the anchor tenant at the upcoming Ksh500Million ( about $5.69 million) Green Square Mall, in Kericho town.

Shah said, “We currently, have running operations in 12 counties and we are engaging with a number of property developers across the country to guarantee a steady supply of suitable malls in Machakos, Nyeri, Kajiado, Garissa, Embu, Naivasha, Narok Busia and Homa Bay.”

By Leonard Magomba, Sunday, August 10th, 2014


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