Mixed Retailers in Kenya

PROSPECTS

Variety stores sees consumer base expand as economy performs well

Variety stores remained the only channel present in mixed retailers in 2019, with these outlets appealing to consumers through their offer of a wide range of goods, from hardware to homewares. Furthermore, these stores serve as a one-stop shop for consumers seeking convenience.

Variety stores face mounting pressure from other channels

Over the forecast period variety stores could face mounting competition due to the expansion of non-grocery specialists which can offer a wider choice within their area of expertise. In addition, hypermarkets and supermarkets are expanding their product portfolios and are offering the same goods as variety stores at competitive prices.

Rise of shopping centre culture

Another threat to the growth of variety stores is the growing preference among consumers for visiting shopping centres. These are able to provide variety in one location but with different outlets offering a wider choice to the consumer.

COMPETITIVE LANDSCAPE

Society Stores maintains lead with low-cost/low-price strategy

Society Stores remains the leading chain of variety stores in the country. With a network of six outlets across the country, the retailer has positioned itself to serve Kenya’s suburban population in developing areas.

Competition expected to intensify from e-commerce

Smartphone penetration in Kenya continued to rise in 2019, with the percentage of the population using the internet continuing to rise. With consumers increasingly seeking flexibility and convenience, the country has witnessed the emergence of online retailers such as Jumia, Kilimall and Safaricom-owned Masoko.

Specialist retailers posing increasing competition to mixed retailers

Many Kenyan consumers are showing a preference for shopping in specialist stores if they require certain goods. This is because they view specialists as offering better quality products.

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