Executive Summary

Mar 2019
Retailing in Kenya continues to grow

Retailing in Kenya continued to grow in 2018, driven by increased mobile phone penetration as well as rising disposable incomes and consumer confidence. Notably, the sprouting up of shopping malls in the country has led to the opening of stores which mainly target mid- to high-income consumers, who are demanding more premium and sophisticated products.

Informal sales remain significant in Kenya

Small and informal businesses in Kenya account for the vast majority of employment. The informal channel therefore supplies a wide range of products to Kenyan consumers, many of whom are not able to visit shopping malls as these are mostly located in the suburbs or do not have the disposable income to spend there.

Cash-strapped Nakumatt goes into administration while Uchumi closes stores

In 2018, Nakumatt Holdings went into voluntary administration in order to protect its supermarkets from its creditors. Since then, the supermarket chain has laid out a recovery plan.

International players pose stiff competition to local retailers in 2018

Over the review period, Shoprite, Africa’s largest retailer by sales, said it would open its first two stores in the country in Nairobi. In addition, the French retailer Carrefour opened its fifth store at Nairobi’s Sarit Centre.

Moderate growth expected over the forecast period

Retailing in Kenya is expected to record moderate value growth over the forecast period, with sales driven by modern retailing. This performance will be supported by an increase in shopping malls in the country, as well as stronger interest from international investors looking to set up operations in Kenya.

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Retailing in Kenya

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Overview

Discover the latest market trends and uncover sources of future market growth for the Retailing industry in Kenya with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

If you're in the Retailing industry in Kenya, our research will save you time and money while empowering you to make informed, profitable decisions.

When you purchase this report, you also get the data and the content from these category reports in Kenya for free:

The Retailing in Kenya market research report includes:

  • Analysis of key supply-side and demand trends
  • Detailed segmentation of international and local products
  • Historic number of stores, selling space and values, company and brand market shares
  • Five year forecasts of market trends and market growth
  • Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

  • How big is the grocery/non-grocery/non-store channel in Kenya?
  • Who are the leading retailers in Kenya?
  • How is retailing performing in Kenya?
  • What is the retailing environment like in Kenya?
  • Which channels are winning or losing in the fight for consumers’ money?

Why buy this report?

  • Gain competitive intelligence about market leaders
  • Track key industry trends, opportunities and threats
  • Inform your marketing, brand, strategy and market development, sales and supply functions

This industry report originates from Passport, our Retailing market research database.

Retailing in Kenya

EXECUTIVE SUMMARY

Retailing in Kenya continues to grow
Informal sales remain significant in Kenya
Cash-strapped Nakumatt goes into administration while Uchumi closes stores
International players pose stiff competition to local retailers in 2018
Moderate growth expected over the forecast period

OPERATING ENVIRONMENT

Informal retailing
Opening hours
Summary 1 Standard Opening Hours by Channel Type
Physical retail landscape
Seasonality
Christmas
Back to School
Payments and delivery
Emerging business models

MARKET DATA

Table 1 Sales in Retailing by Store-based vs Non-Store: Value 2013-2018
Table 2 Sales in Retailing by Store-based vs Non-Store: % Value Growth 2013-2018
Table 3 Sales in Store-Based Retailing by Channel: Value 2013-2018
Table 4 Sales in Store-Based Retailing by Channel: % Value Growth 2013-2018
Table 5 Store-Based Retailing Outlets by Channel: Units 2013-2018
Table 6 Store-Based Retailing Outlets by Channel: % Unit Growth 2013-2018
Table 7 Sales in Non-Store Retailing by Channel: Value 2013-2018
Table 8 Sales in Non-Store Retailing by Channel: % Value Growth 2013-2018
Table 9 Non-Grocery Specialists: Value Sales, Outlets and Selling Space 2013-2018
Table 10 Non-Grocery Specialists: Value Sales, Outlets and Selling Space: % Growth 2013-2018
Table 11 Sales in Non-Grocery Specialists by Channel: Value 2013-2018
Table 12 Sales in Non-Grocery Specialists by Channel: % Value Growth 2013-2018
Table 13 Non-Grocery Specialists Outlets by Channel: Units 2013-2018
Table 14 Non-Grocery Specialists Outlets by Channel: % Unit Growth 2013-2018
Table 15 Retailing GBO Company Shares: % Value 2014-2018
Table 16 Retailing GBN Brand Shares: % Value 2015-2018
Table 17 Store-based Retailing GBO Company Shares: % Value 2014-2018
Table 18 Store-based Retailing GBN Brand Shares: % Value 2015-2018
Table 19 Store-based Retailing LBN Brand Shares: Outlets 2015-2018
Table 20 Non-Store Retailing GBO Company Shares: % Value 2014-2018
Table 21 Non-Store Retailing GBN Brand Shares: % Value 2015-2018
Table 22 Non-Grocery Specialists GBO Company Shares: % Value 2014-2018
Table 23 Non-Grocery Specialists GBN Brand Shares: % Value 2015-2018
Table 24 Non-Grocery Specialists LBN Brand Shares: Outlets 2015-2018
Table 25 Non-Grocery Specialists LBN Brand Shares: Selling Space 2015-2018
Table 26 Forecast Sales in Retailing by Store-based vs Non-Store: Value 2018-2023
Table 27 Forecast Sales in Retailing by Store-based vs Non-Store: % Value Growth 2018-2023
Table 28 Forecast Sales in Store-Based Retailing by Channel: Value 2018-2023
Table 29 Forecast Sales in Store-Based Retailing by Channel: % Value Growth 2018-2023
Table 30 Forecast Store-Based Retailing Outlets by Channel: Units 2018-2023
Table 31 Forecast Store-Based Retailing Outlets by Channel: % Unit Growth 2018-2023
Table 32 Forecast Sales in Non-Store Retailing by Channel: Value 2018-2023
Table 33 Forecast Sales in Non-Store Retailing by Channel: % Value Growth 2018-2023
Table 34 Non-Grocery Specialists Forecasts: Value Sales, Outlets and Selling Space 2018-2023
Table 35 Non-Grocery Specialists Forecasts: Value Sales, Outlets and Selling Space: % Growth 2018-2023
Table 36 Forecast Sales in Non-Grocery Specialists by Channel: Value 2018-2023
Table 37 Forecast Sales in Non-Grocery Specialists by Channel: % Value Growth 2018-2023
Table 38 Forecast Non-Grocery Specialists Outlets by Channel: Units 2018-2023
Table 39 Forecast Non-Grocery Specialists Outlets by Channel: % Unit Growth 2018-2023

DEFINITIONS

SOURCES

Summary 2 Research Sources

Apparel and Footwear Specialist Retailers in Kenya

HEADLINES

PROSPECTS

Modern grocery retailers providing more competition for apparel and footwear specialists
Apparel and footwear specialist retailers focusing on more sophisticated consumer needs
Internet retailing increasingly preferred by well-connected middle-class householders

COMPETITIVE ENVIRONMENT

Bata maintains its leading position
More international players are entering the country
Opening of new malls and lower rents to drive channel growth

CHANNEL DATA

Table 40 Apparel And Footwear Specialist Retailers: Value Sales, Outlets and Selling Space 2013-2018
Table 41 Apparel And Footwear Specialist Retailers: Value Sales, Outlets and Selling Space: % Growth 2013-2018
Table 42 Apparel And Footwear Specialist Retailers GBO Company Shares: % Value 2014-2018
Table 43 Apparel And Footwear Specialist Retailers GBN Brand Shares: % Value 2015-2018
Table 44 Apparel And Footwear Specialist Retailers LBN Brand Shares: Outlets 2015-2018
Table 45 Apparel And Footwear Specialist Retailers LBN Brand Shares: Selling Space 2015-2018
Table 46 Apparel And Footwear Specialist Retailers Forecasts: Value Sales, Outlets and Selling Space 2018-2023
Table 47 Apparel And Footwear Specialist Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2018-2023

Direct Selling in Kenya

HEADLINES

PROSPECTS

Companies increasingly using youths to directly sell their products
Multinationals using this model to test the market
Beauty and personal care products drive sales

COMPETITIVE LANDSCAPE

Consumers still prefer physical stores
Many consumers remain sceptical about direct selling due to its poor reputation

CHANNEL DATA

Table 48 Direct Selling by Category: Value 2013-2018
Table 49 Direct Selling by Category: % Value Growth 2013-2018
Table 50 Direct Selling GBO Company Shares: % Value 2014-2018
Table 51 Direct Selling GBN Brand Shares: % Value 2015-2018
Table 52 Direct Selling Forecasts by Category: Value 2018-2023
Table 53 Direct Selling Forecasts by Category: % Value Growth 2018-2023

Health and Beauty Specialist Retailers in Kenya

HEADLINES

PROSPECTS

Internet retailing of health and beauty products expected to continue to grow
New shopping malls target middle-income consumers
Beauty specialist retailers facing competition from pharmacies and supermarkets

COMPETITIVE LANDSCAPE

International players using local celebrities and pop-up stores to drive sales
Number of health and beauty specialist stores continues to rise
Online retailers posing a threat to health and beauty specialists

CHANNEL DATA

Table 54 Health and Beauty Specialist Retailers: Value Sales, Outlets and Selling Space 2013-2018
Table 55 Health and Beauty Specialist Retailers: Value Sales, Outlets and Selling Space: % Growth 2013-2018
Table 56 Sales in Health and Beauty Specialist Retailers by Channel: Value 2013-2018
Table 57 Sales in Health and Beauty Specialist Retailers by Channel: % Value Growth 2013-2018
Table 58 Health and Beauty Specialist Retailers GBO Company Shares: % Value 2014-2018
Table 59 Health and Beauty Specialist Retailers GBN Brand Shares: % Value 2015-2018
Table 60 Health and Beauty Specialist Retailers LBN Brand Shares: Outlets 2015-2018
Table 61 Health and Beauty Specialist Retailers LBN Brand Shares: Selling Space 2015-2018
Table 62 Health and Beauty Specialist Retailers Forecasts: Value Sales, Outlets and Selling Space 2018-2023
Table 63 Health and Beauty Specialist Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2018-2023
Table 64 Forecast Sales in Health and Beauty Specialist Retailers by Channel: Value 2018-2023
Table 65 Forecast Sales in Health and Beauty Specialist Retailers by Channel: % Value Growth 2018-2023

Internet Retailing in Kenya

HEADLINES

PROSPECTS

Jumia remains the leading internet retailing platform
Further strong potential for e-commerce in Kenya
Internet retailing set to be further driven by well-connected young urban consumers

COMPETITIVE LANDSCAPE

Local retailers get together to offer consumers greater value
Supermarkets expected to provide stiff competition
OLX closes its Kenyan operations

CHANNEL DATA

Table 66 Internet Retailing by Category: Value 2013-2018
Table 67 Internet Retailing by Category: % Value Growth 2013-2018
Table 68 Internet Retailing GBO Company Shares: % Value 2014-2018
Table 69 Internet Retailing GBN Brand Shares: % Value 2015-2018
Table 70 Internet Retailing Forecasts by Category: Value 2018-2023
Table 71 Internet Retailing Forecasts by Category: % Value Growth 2018-2023

Mixed Retailers in Kenya

HEADLINES

PROSPECTS

Mixed retailers seen as experts in baby care
Variety stores the only channel present
Variety stores expected to face more competition from supermarkets and hypermarkets

COMPETITIVE LANDSCAPE

Mixed retailers facing competition from internet retailers
Specialist retailers also posing increasing competition to mixed retailers
Increasing mall space serves to limit footfall in mixed retailers

CHANNEL DATA

Table 72 Mixed Retailers: Value Sales, Outlets and Selling Space 2013-2018
Table 73 Mixed Retailers: Value Sales, Outlets and Selling Space: % Growth 2013-2018
Table 74 Sales in Mixed Retailers by Channel: Value 2013-2018
Table 75 Sales in Mixed Retailers by Channel: % Value Growth 2013-2018
Table 76 Mixed Retailers Outlets by Channel: Units 2013-2018
Table 77 Mixed Retailers Outlets by Channel: % Unit Growth 2013-2018
Table 78 Mixed Retailers Forecasts: Value Sales, Outlets and Selling Space 2018-2023
Table 79 Mixed Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2018-2023
Table 80 Forecast Sales in Mixed Retailers by Channel: Value 2018-2023
Table 81 Forecast Sales in Mixed Retailers by Channel: % Value Growth 2018-2023
Table 82 Forecast Mixed Retailers Outlets by Channel: Units 2018-2023
Table 83 Forecast Mixed Retailers Outlets by Channel: % Unit Growth 2018-2023

Mobile Internet Retailing in Kenya

HEADLINES

PROSPECTS

Partnerships between mobile phone operators and entrepreneurs to drive growth
On-the-go lifestyles of urban consumers support sales
Channel benefiting from the availability of affordable smartphones

COMPETITIVE LANDSCAPE

Local players enter the channel to challenge existing online retailers
Increasing social media presence to support sales

CHANNEL DATA

Table 84 Mobile Internet Retailing: Value 2013-2018
Table 85 Mobile Internet Retailing: % Value Growth 2013-2018
Table 86 Mobile Internet Retailing Forecasts: Value 2018-2023
Table 87 Mobile Internet Retailing Forecasts: % Value Growth 2018-2023

Modern Grocery Retailers in Kenya

HEADLINES

PROSPECTS

Supermarkets expected to drive growth over the forecast period
International operators seek to gain share from local retailers
Debts lead to store closures for Nakumatt and Uchumi

COMPETITIVE LANDSCAPE

Hypermarkets to pose stiff competition to supermarkets
Local players face competition from international retailers
Forecourt retailers expanding their partnerships

CHANNEL DATA

Table 88 Modern Grocery Retailers: Value Sales, Outlets and Selling Space 2013-2018
Table 89 Modern Grocery Retailers: Value Sales, Outlets and Selling Space: % Growth 2013-2018
Table 90 Sales in Modern Grocery Retailers by Channel: Value 2013-2018
Table 91 Sales in Modern Grocery Retailers by Channel: % Value Growth 2013-2018
Table 92 Modern Grocery Retailers Outlets by Channel: Units 2013-2018
Table 93 Modern Grocery Retailers Outlets by Channel: % Unit Growth 2013-2018
Table 94 Modern Grocery Retailers GBO Company Shares: % Value 2014-2018
Table 95 Modern Grocery Retailers GBN Brand Shares: % Value 2015-2018
Table 96 Modern Grocery Retailers LBN Brand Shares: Outlets 2015-2018
Table 97 Modern Grocery Retailers LBN Brand Shares: Selling Space 2015-2018
Table 98 Modern Grocery Retailers Forecasts: Value Sales, Outlets and Selling Space 2018-2023
Table 99 Modern Grocery Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2018-2023
Table 100 Forecast Sales in Modern Grocery Retailers by Channel: Value 2018-2023
Table 101 Forecast Sales in Modern Grocery Retailers by Channel: % Value Growth 2018-2023
Table 102 Forecast Modern Grocery Retailers Outlets by Channel: Units 2018-2023
Table 103 Forecast Modern Grocery Retailers Outlets by Channel: % Unit Growth 2018-2023

Traditional Grocery Retailers in Kenya

HEADLINES

PROSPECTS

Informal markets continue to provide affordability
Supermarkets expected to pose increasing competition
Middle-class consumers expected to increasingly opt for supermarkets

COMPETITIVE LANDSCAPE

Channel facing competition from modern grocery retailers
International companies continue to expand
Traditional retailers expected to continue to appeal to older middle-income consumers

CHANNEL DATA

Table 104 Traditional Grocery Retailers: Value Sales, Outlets and Selling Space 2013-2018
Table 105 Traditional Grocery Retailers: Value Sales, Outlets and Selling Space: % Growth 2013-2018
Table 106 Traditional Grocery Retailers Forecasts: Value Sales, Outlets and Selling Space 2018-2023
Table 107 Traditional Grocery Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2018-2023