“160,000 customers will come to Tuskys everyday and shop something” Dan Githua
On Tuesday May 2nd 2017, Tuskys supermarkets shoppers were taken aback. They had just learnt that the iconic “Tuskys Beba Beba” Branch had been involuntarily closed down. It was a big blow given how convenient it had been to more than 6000 daily customers and how significant it had been for the retail chain.
Mr Dan Githua, Tuskys Supermarkets CEO has finally revealed that there is nothing they could have done to salvage the situation after the Bank of Baroda sold the building to a developer who is refurbishing it and will sub-divide the space into stalls, a move considered to be more profitable as compared to letting it out to Tuskys.
However, Dan Githua has told Kenyan Wall-Street that they will this month open the biggest retail store in terms of square feat in Nairobi’s Central Business District (CBD).
“Tuskys Imara is still our biggest Store in CBD in terms of square feat, but the new store which is a merger between Tuskys Ronald Ngala & Tuskys Magic will be our biggest branch in Nairobi CBD.” said Tuskys CEO Dan Githua.
Githua also noted that they are looking for other locations to accommodate the famous Beba Beba Branch and an announcement will be made in the coming weeks on the new home for Beba Beba.
“We can’t let that go, Tuskys Beba has to find a home even though we couldn’t find a home as fast we wanted.” Mr Githua added that the branch had more than 12,000 loyalty card holders and each of them had been issued with Sh 500 to be redeemed in other Tuskys branches within Nairobi CBD. He said that the move was aimed at directing the customers to other branches in CBD.
Meanwhile, the retail chain’s plan of opening more convenience stores across Shell-branded fuel stations is still ongoing and more shops will be rolled out before the end of the year according to Dan Githua.
“Its one our best performing segments of the business and the margins are good.” But he acknowledges that the volumes are still small. “A few stores will come this month and we are also in discussions to partner with other fuel retailers.” He told The Kenyan Wall-Street.
Transforming The Business from a Family Run Business
Since taking the reins in May 2015, Mr Githua, 38, who knows the plight of shoppers and has moved quickly in transforming the business from a family run business into a professionally run business.
In 2016 when other retailers seemed to be struggling, Tuskys CFO says it was one their best years in terms of financial performance. In 2017, he projects extraordinary growth given that all restructuring exercise has been completed.