Carrefour is now the 3rd largest supermarket chain in Kenya, behind Naivas and Quickmart. The retailer has survived pandemic disruptions due to its aggressive online shopping business model and a new supplier-retailer partnership technique.
Carrefour set up its first outlet in May 2016 and now plans to build a more robust online market platform to increase online orders. It also intends to improve the digital payments method, raise its online platform and grow online sales in the post-COVID-19 era.
Carrefour Stores in Kenya
While Carrefour had only two stores when it made its entry into Kenya’s retail space some three years ago, the retailer has since increased this number to 11.
The retailer posted revenues of $230.86 Million (KSH 25.32 Billion) in 2020 according to financial statements by United Arab Emirates-based Majid Al Futtaim.
According to the retailer, this growth could be attributed to its resilience yet aggressive business model and partly due to some competitors’ exit.
The retailer was launched in the Africa region in 1995 by Majid Al Futtaim- which has the exclusive franchisee to operate Carrefour in the Middle East, Africa and Asia.
In Kenya, Carrefour now has eleven (11) outlets mainly spread out in the capital city of Nairobi and a few others in the coastal city of Mombasa.
While retailers reported a slump in sales when the first COVID-19 case was confirmed and containment measures put in place, Carrefour said an initial spike in demand for essentials due to panic buying.
This situation has since normalised, although demand for electronics and clothing has remained low.
According to a recent research note by Kingdom Securities, the pandemic has led to the retailer shifting from cash to card and mobile phone payments.
The retailer projects an upward use of non-cash payment platforms soon.
The supermarket chain has adopted a supplier-retailer partnership technique to deal with late payment issues to the suppliers-an issue that other supermarkets in Kenya are grappling with.
A supplier payment agreement is maintained with a credit period ranging from 7 days for grocery suppliers to 90 days for electronics and other slow-moving products.
While there is a slowdown in activity in Kenya’s retail space due to COVID-19, Carrefour remains bullish and targets to open new outlets in Mombasa, Kisumu, Nakuru, Eldoret and Naivasha.
This expansion drive is to be financed through credit from major local and foreign financial institutions.
Today, Africa has over 320 Carrefour stores in 16 countries, serving more than 750,000 customers daily and employing over 37,000 people.
Carrefour operates different store formats and multiple online offerings to meet the growing needs of its diversified customer base.
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