NAIROBI, Kenya, Jul 1 – Struggling regional retailer Nakumatt Holdings has closed three branches in Uganda as it continues to weather its financial storm.
According to Knight Frank Uganda, Nakumatt stores in Acacia Mall, Kololo, Village Mall, Bugolobi and Victoria Mall, Entebbe were closed on Wednesday.
“The supermarket space at these malls will go under redevelopment to add additional value to our shoppers and their shopping experience,” said Marc du Toit Head of Retail, Knight Frank Uganda.
Nakumatt closed three other branches in recent months: Nakumatt Ronald Ngala, Nakumatt Haile Selassie Branch and Nakumatt Katwe in Nairobi and Uganda.
Earlier, the firm announced that it “cull” several of its poorly performing branches in Kenya and Uganda as part of its cost-cutting strategy.
The revival exercise will also see 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 whose lease 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.