LG East Africa Goes online after Nakumatt slump

LG East Africa says it sold 60 percent of its products online last year after Nakumatt supermarket began facing financial crisis that lead to the closure of a number of stores.

According to the regional manager Janghoon Chung, Nakumatt used to stock more than half of LG’s products prior to its financial crisis.

“The Kenyan market is very interesting. It is rapidly changing and we are looking to expand our online business after what happened to Nakumatt” he said.

Although the electronics company supplied its products to Tuskys, Carrefour, and Naivas supermarkets, the online channel which was launched last year recorded the highest sales.

Kenya has a high internet penetration of approximately over 60 percent. Therefore, it is not surprising that LG decided to take advantage of internet penetration in Kenya by selling its products online.

The South Korean company is now reaping the benefits and probably teaching the companies that rely on retailers that there is a dependable alternative.