Naivas To Open 2 New Outlets, Chandarana To Open 4

Naivas supermarket, a local retail chain, announced plans to open 2 new outlets by the end of February 2021. The two outlets will be located at Nairobi’s Greenspan Mall in Donholm and Imara Shopping Mall in Imara Daima.

Currently, Naivas operates 79 outlets, having opened 10 outlets in 2021, compared to other retailers such as Quickmart and Carrefour which opened 9 and 5 branches, respectively.

The retailer’s decision to expand in Mombasa Road and Eastlands is supported by the presence of a good transport network e.g the Nairobi Expressway and Airport North Road which will enhance client and supplier accessibility.

In terms of performance, according to the Cytonn Annual Markets Review-2021, Eastlands where Donholm is classified, recorded average rent per SQFT of 133 shillings, which is 21.8 percent lower than the market average of 170 shillings per SQFT.

On the other hand, Mombasa Road where Imara Daima is classified recorded average rent per SQFT of 148 shillings, which is 12.9 percent lower than the market average of 170 shillings per SQFT. This signifies that the retailer’s decision to invest in the area is mainly due affordability of the retail spaces.

The table below shows the submarket performance of nodes in the Nairobi Metropolitan Area (NMA):

Chadarana Foodplus Supermarket, a local retail chain, announced plans to open 4 outlets over the next four months leading to June 2022.

Three of these will be large size convenience stores which will be located in Riverside, Thigiri, and General Mathenge in Westlands, and 1 will be located in an undisclosed mall outside Nairobi.

The retail chain plans to focus its expansion in residential areas, eyeing heavy footfall in the estates and thus offering convenience to residents, as opposed to its strategy that favored expansion in malls.

This move will see Chandarana expand its footprint in the country and increase its market share having opened its 24^thoutlet in Westlands’ Rhapta Road early this year.

It faces competition from other retail chains such as Naivas, Quickmart, and Carrefour who are taking up space left by troubled retailers such as Nakumatt and Tuskys.

The table below shows the summary of the number of stores of the Key local and international retailer supermarket chains in Kenya;