Mixed Retailers in Kenya

PROSPECTS

Mixed retailers seen as experts in baby care

Due to the increased cost of living, new mothers are looking to save money by shopping in mixed retailers in city centres as these offer an array of baby care items, from nappies, toys and clothing to nursery furniture, at more affordable prices when compared to specialist stores. Although these outlets mostly sell baby care products, they also generally stock clothing for children up to 16 years of age as well as a few household items.

Variety stores the only channel present

Variety stores remained the only channel present in mixed retailers in 2018, 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 expected to face more competition from supermarkets and hypermarkets

Over the forecast period the sales of variety stores could be hit by the emergence of large hypermarkets, which will appeal to those consumers who prefer to see and touch products before purchase. In addition, hypermarkets and supermarkets are expanding their portfolio of products and are offering the same goods as variety stores at competitive prices.

COMPETITIVE LANDSCAPE

Mixed retailers facing competition from internet retailers

Mobile phone penetration in Kenya stood at 90% in December 2017, with the country having around 30 million internet users. 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 also posing increasing competition to mixed retailers

Many Kenyan consumers are preferring to shop in specialist stores if they require certain goods. This is because they view specialists as offering better quality products.

Increasing mall space serves to limit footfall in mixed retailers

Due to the rapid growth of shopping malls in Kenya, entrepreneurs are opting to open shops which either serve a unique purpose or as a one-stop-shop, for example a hypermarket. Consumers are expected to increasingly prefer to shop in either a specialist outlet for specific products or from hypermarkets when shopping for multiple items.

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