Dan Githua: Changing the Retail Concept in Kenya with Tuskys

The Kenya Retail sector is projected to grow by 20 percent annually as a result of the growing population; a rising middle class and improved technology as the driving factors.

Population growth continue to create demand for retail goods and services, the rising middle class has increased its purchasing power as well as varying tastes and preferences for a variety of goods and services. Thus, there has been a higher disposable income and increased financial ability for consumption.

Further technology has provided avenues of cashless payment systems making shopping safe and convenient.

“The Kenyan retail market has been dominated by local supermarket chains with foreign chains struggling to make entrance due to a general resistance to foreign takeovers,” according to Cytonn Report. “63percent of shoppers prefer local brands for most goods and their preference is mostly influenced by affordability of the products.”

Dan Githua, 36, Chief Executive Officer of one of Kenya’s largest supermarket chains Tusker Mattresses, commonly known as Tuskys a family-owned business that started as a small shop in the town of Nakuru in the 1980s. Today it operates 64 stores in Kenya and in Uganda.

Githua, among the 2016 Top 40 under 40 men, he knows this too well. He has to keep the Tuskys brand afloat besides the competition that is coming in from international brands.

“When you look at the market today, there is a great shift in the retail sector. The customer now has more options and is more informed and demanding,” say Githua in the retail’s News Magazine.

“First, we have to win with the customer. We already have the highest foot fall of customers in our stores. To keep them happy, we want to improve on our service offering and build a strong customer centric culture.”

Githua has steered the chain into having the most improved customer experience through loyalty programs and better service delivery to increase customer retention and expenditure.

Having known that what drives people who are busy with their day to day schedules, Tuskys has now captured the essence of food and lifestyle products as the most preferred items in retail stores. Through their food, groceries and Tuskys Delicatessans (Deli) shoppers are able to get fresh food ‘everyday, so fresh for less’ and fresh prepared and cooked food daily – cooking the food right before your eyes.

However, this is not the only thing the Tuskys CEO who joined in 2015 is thinking about.

With the Kenyan retail sector contributing over 15 percent to the Gross Domestic Product (GDP), Githua says their major plan is to achieve an annual growth of 20 percent with eyes set for listing at the Nairobi Securities exchange.

“I believe that it is achievable with the right people, the right product and the right price.”

He identified the gaps in his workforce. It had skills gaps in the customer handling skills and some had skills shortage.

Realising that he needed a team that has better product knowledge, one that knows how to work with new technologies; and challenges in retention, he introduced an ongoing staff training to align them to the customer centric-culture, investments in the area of technology   and the introduction of performance based staff commissions to enhance performance as part of the Tuskys 2.0 strategy.

Githua has further introduced smart retailing to Kenya through the improvement of relationships with the innovative supplier payment models he introduced.

He has presented the Tuskys retail chain as an attractive and promising career to those who may be overlooking it in favour of other options. To continue to attract younger workers, the opportunity to use and develop technology-based skills and knowledge within a retail career, Tuskys is now synonymous with its internship program.

The program launched in in 2015 with an investment of over Sh 150 Million aims to benefit over 7000 youth graduating from tertiary institutions to prepare them for the job market. The program aims to train 1500 graduates every year for five years.

The company is in strategic partnership agreement with the KCB Foundation offering internship opportunities and contract farming opportunities for youths in agribusiness. This is to benefit over 13,000 youths across 22 counties in the identified value chains in agribusiness through provision of asset financing and working capital to enable the young farmers meet the needs of demand and supply.

Indeed, through Githua’s leadership, Tuskys is going an extra mile to deliver value to its entire key stakeholders.