Regional retailer Nakumatt Holdings has successfully closed a business acquisition deal, setting the stage for its enhanced expansion in Western Kenya.
In the deal formally announced on 21st November, Nakumatt Holdings, has acquired the former, Yako Supermarkets Ltd, assets in Kakamega, Bungoma and Busia, at an undisclosed financial consideration.
The acquisition, following the recent regulatory approval by the Competition Authority of Kenya, will allow, Nakumatt to make a fresh entry to Busia and Bungoma, towns, while counting its second store in Kakamega town.
According to Nakumatt Holdings, Regional Operations and Strategy Director, Mr. Thiagarajan Ramamurthy, the regional retailer, has already embarked on the refurbishment works for the three stores to bring them up to par with the retailer’s brand standards and in store ambience.
The new stores, to be reopened early next month, under the branch names; Nakumatt Bungoma, Nakumatt Busia and Nakumatt Mid-Point, in Kakamega, are expected to further enhance the retailer’s market presence in the West Kenya region.
“The acquisition, of Yako Supermarket outlets is fundamentally aligned to our commitment to enhance our local and regional footprint,” Ramamurthy said, adding, “we have proceeded to temporarily close down the stores in Kakamega, Busia and Bungoma to facilitate their remodeling, staff training and in store branding.”
Alongside the acquisition, Nakumatt, is now all set to close its trading year (ending February 2015) on a 60-branch strong position, up from its current 55 branch status. Plans, for the opening of new Nakumatt stores before the end of the trading year, in Kericho, Emali, Kampala and Kigali, are already in high gear.
As part of a strategy to double its local and regional market share, Nakumatt, has been undertaking a number of customer experience enhancing projects.
Currently enjoying a less than 25% market share of the formal retail space, Nakumatt Holdings, is actively seeking to retain a bigger slice of the mid to premium segment. Through the strategy, the retailer has been working, to grow its gross revenue to over US$1billion in the medium term period while growing its network footprint across East Africa.
Nakumatt, has already embarked on a stores refurbishment programme geared at refreshing its shopping floor ambience to global standards across the region.
Source (Nakumatt)
