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Game Stores Opens Third Outlet at Kisumu Mega City Mall

BY Soko Directory Team · July 29, 2019 02:07 am

Game Stores, a subsidiary of South Africa’s retail company Massmart Holdings, opened its third outlet in Kenya and its first outside Nairobi, at the Kisumu Mega City Mall.

Other branches of the Massmart Holdings subsidiary are located at the Garden City Mall along Thika Road, and at the Karen Waterfront.

The store will be situated on the ground floor, previously occupied by Nakumatt, which has since moved to the first floor.

“We expect this to result in increased competition against the troubled retailer, which has continued to close down most its branches due to financial constraints brought about by poor cash flow and supply chain management,” says Cytonn Investments in their weekly report.

Kenya’s retail sector has continued to attract entry and expansion of several international retailers, driven by a widening middle class, provision of high-quality mall spaces in line with international standards as well as improving infrastructure within counties.

Game Stores marks the third international retailer in Kenya with presence outside Nairobi County, after Shoprite in Kisumu and Mombasa and Choppies, which has stores in counties such as Kiambu, Kisumu and Kisii, which continue to be underserved in formal retail supply in comparison to Nairobi County despite the relatively high GDP per capita.

In terms of performance, compared to other urban cities, the retail sector in Kisumu has continued to record relatively high returns thus attracting investors.

According to Cytonn Research, the sector recorded 0.6 percent points annualized increase in rental yields between 2017- 2018, attributable to 11.6 percent points increase in occupancy rates over the same period.

The increase in occupancy rates was mainly attributed to a high urbanization rate that stands at 5.5 percent p.a. compared to Kenya’s average urbanization rate of 4.3 percent attributed to devolution which is the pull factor for growth in population in the area.

Read Also: Game Supermarket Protects Customers PIN in New Queuing System, Should other Supermarkets Follow Cue?

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system.Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

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