NAIROBI, Kenya, May 8 – Regional retailer Nakumatt Holdings has announced plans to close the Haile Selassie branch as part of its restructuring strategy aimed at streamlining its operations.
The plan is to return the struggling Haile Selassie branch located at KU Plaza, back to Kenyatta University, by the end of this month at the expiry of the current lease.
The closure of Nakumatt Haile Selassie will be the third closure to be undertaken by the retailer in recent months following similar developments at its former Nakumatt Ronald Ngala and Nakumatt Katwe in Nairobi CBD and Kampala, Uganda respectively.
This is part of its strategic branch culling exercise targeting several of its poorly performing branches in Kenya and Uganda as part of the cost cutting strategy.
The branch culling exercise, will also involve the opening of new branches at carefully selected high traffic locations.
The accelerated restructuring phase will see the retailer actively manage and reduce its total cost base by up to Sh1.5 billion.
“The branch culling strategy will start off with sub optimally performing branches for whose leases contracts are due for renewal to be followed by branches in poor locations. We have also embarked on a shelf stocks optimisation programme to enable us retain a lean variety of profitable retail products,” said Nakumatt Holdings Managing Director Atul Shah.
Alongside management enhancement programmes and specific cost cutting interventions, the new strategy, Shah said, will see the firm reducing its store keeping unit exposure by retaining frequently purchased items and delisting slow moving products.
The move comes days after Tuskys Supermarket shut down its second branch in the city; Tuskys Bebabeba on Tom Mboya Street.