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Naivas Supermarket Starts To Sell Alcohol, Breaks Own Tradition

BY Juma · April 20, 2020 03:04 pm

Did you know that Naivas Supermarket was among the few retailers in Kenya that was not dealing in the sale of any form of alcohol? If you walked into a Naivas Supermarket and asked for alcohol, attendants would look at you like the only visitor in the New Jerusalem.

For 10 years, Naivas Supermarket had set a tradition of not dealing in the sale of alcohol, a move that always gave its competitors that deal with the same advantage over sales. But times seem to have changed with tough times calling for tough decisions, especially with the reigning Covid-19.

As the deadly Covid-19 continues to sweep across the country, and with businesses across the country continuing to feel the heat, Naivas Supermarket has been forced to break its long-standing tradition and ventured into the sale of alcohol.

Naivas began opening alcohol kiosks within its newly-opened food market stores with the launch of new outlets that offered shoppers a wide variety of products, including fresh produce such as vegetables. The sale of alcohol in the outlets has set a conversation in a motion of how businesses are trying to adapt to the changing times.

When the Covid-19 came knocking, the government, through the Ministry of Health and Interior and Government Coordination ordered the closure of all bars and clubs to stop the spread of the virus among revelers.

READ: Gobeba Experiences Surging Orders As Coronavirus Pandemic Persist

The closure of bars and clubs meant that Kenyans started drinking from their homes. This led to an increase in demand for alcoholic drinks. Online platforms registered an increase in demand for alcohol by between 50 and 200 percent.

The demand for alcohol has seen many businesses changing their models to start delivering alcohol to Kenyans in their homes. “The decision to set up an alcoholic beverage shop in our outlets was driven by customer demand,” said Willy Kimani, the Naivas chief commercial officer.

According to Mr. Kimani, the typical customer wants to meet all their basket requirements in a single location and to facilitate customers so that they do not feel they have to move elsewhere for these purchases. “We decided to set up and run the shops ourselves.”

“We are in a traditionally high-volume, low-margin sector and need to be cognizant of evolving consumer dynamics. Our research tracks different product categories and alcoholic beverages were confirmed to be a necessary one,” said Mr. Kimani

When Covid-19 was starting, the online platform GoBeba experienced a surge in most of its products with Kenyans placing their orders. The platform saw an increase in groceries, gas, and alcohol by 200, 100 and 50 percent respectively, an indication that most Kenyans are moving online in pursuit of foodstuff and other household items.

READ: Naivas Supermarket Set To Sell 30 Percent Stake To French Fund

Early this month, the World Bank private lending arm, the International Finance Corporation (IFC) have announced that it is on the process of buying a stake at Kenya’s Naivas Supermarket worth 1.5 billion shillings.

IFC is an affiliate of the World Bank and a member of the World Bank Group which is the World’s largest global development institution that focuses on the private sector in developing countries such as Kenya.

READ: World Bank Buys Naivas Supermarket Stake Worth Ksh1.5 Billion

Juma is an enthusiastic journalist who believes that journalism has power to change the world either negatively or positively depending on how one uses it.(020) 528 0222 or Email: info@sokodirectory.com

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