, NAIROBI, Kenya, Aug 26 – Nakumatt Holdings plans to invest Sh1.2 billion in departmental store development projects as part of the firm’s revenue diversification strategy.
Nakumatt Holdings Managing Director Atul Shah says the strategy, which will involve the construction of several brand aligned concept stores, within the Nakumatt branch network, will be executed concurrently with an on-going branch expansion strategy across the region.
Shah says the strategy will see Nakumatt signing up for the exclusive operation of departmental stores aligned to premium global brands in key retail categories such as footwear, cosmetics, toys and consumer electronics.
“The strategy is also geared at maintaining a premium edge in response to growing customer demands and market trends,” he said.
Nakumatt has already commenced concept store construction works for Clarks and Skechers Lifestyle Footwear brands with a Sh480 million investment outlay.
“In coming weeks, we shall be formally opening our new Clarks and Skechers concept stores as we embark on this strategic project to incorporate exclusive departmental stores across our branch network,” Shah confirmed.
Having sealed an exclusive regional deal with Revlon last year and lately with L’Oreal to rollout mini departmental stores for Revlon and Maybelline products respectively, Shah disclosed that Nakumatt is training its focus on Lifestyle based departmental stores due to the latent market demand.
“We are negotiating with several other global lifestyle brands including the Walt Disney Company to allow us present a refreshing and truly world-class retail product for our discerning customers,” he stated.
Shah confirmed that pilot departmental stores already rolled out; have registered steady growth confirming the viability of the concept.
“Such stores, he disclosed are expected realise a minimum revenue of 10 percent of Nakumatt’s annual turnover,” he said.
Prior to a progressive rollout to other branches, Nakumatt will undertake the departmental store development project at its Nakumatt Westgate Hypermarket, Nakumatt Thika Road Mall Supermarket and Nakumatt Junction Hypermarket in Nairobi.