Choppies supermarket is closing its Kisumu branches as the retailer struggles to make sufficient revenues. The retailer closed its first branch yesterday at Swan centre, transferring stock to other branches in the city.
According to Capital FM, a source from the supermarket says that Choppies will close all the Kisumu branches by January next year.
“Swan Centre branch is closing today, we are in the process of transferring stock to the other branches spread across the city,” said the source from the store. “We are staring at job losses, the supermarket is leaving. Workers are devastated.”
Last week, Nakumatt Kisumu closed its last branch in Kisumu, forcing 37 workers out of employment.
Choppies has a total of five branches in Kisumu, three in the city centre.
The retailer continues to struggle with dwindling revenues and increasing competition. In big cities, like Nairobi, Choppies has to outmuscle established retailers like Tuskys and Naivas.
Moreover, mergers in smaller retailers like Tumaini and Quickmart continue to harden the retailer’s competitive environment.
The closure of the Kisumu branch is part of the grand plan to leave the Kenyan market. Earlier, the supermarket closed its branches in Bungoma and Kiambu.