Traditional grocery retailers responded negatively to the COVID-19 pandemic in 2020. Restrictions on movement during the early stages of the pandemic had a negative effect on the retail current value sales of some traditional grocery retailers, particularly those located in urban centres or close to transportation hubs, such as bus stops.
Despite the expansion of modern grocery retailers in Kenya, the traditional channel is maintaining its popularity among consumers. The main reason for this is due to its expansion across low- and middle-income neighbourhoods, as well as the channel’s ability to attract price-sensitive customers by offering value for money.
In 2021 overall, Zucchini Green Grocers will continue to gain momentum in Kenya, thanks to the growing health and wellness trend, which has been further amplified by the COVID-19 pandemic. The retailers has also continued to expand its omnichannel approach in response to the demand for convenience, with the latest strategy consisting of a strategic partnership with Uber Eats.
Over the forecast period, digitalisation will continue transforming traditional grocery retailers in Kenya. This will largely be due to fintech (financial technology), the government, and a general shift in consumer behaviours.
Although cashless payment options have been offered for a number of years, they were used by very few consumers until 2020. COVID-19 has been a catalyst, as it led a growing number of consumers to seek to avoid handling cash due to a fear of contagion.
Traditional grocery retailers will face increased competitive pressure from modern grocery retailers during the forecast period. The number of modern grocery retailers in Kenya is expanding steadily: Once largely confined to urban centres and suburban shopping malls, supermarkets can increasingly be found in provincial towns and residential neighbourhoods.
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Understand the latest market trends and future growth opportunities for the Traditional Grocery Retailers industry in Kenya with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
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Traditional grocery retailing is the aggregation of those channels that are invariably non-chained and are, therefore, owned by families and/or run on an individual basis. For Euromonitor traditional grocery retailing is the aggregation of three channels: Independent Small Grocers, Food/Drink/Tobacco Specialists and Other Grocery Retailers. While there can be modern (i.e. chained) food/drink/tobacco specialists or other grocery retailers, due to the store's presence in the channel, these stores are still considered as traditional for Euromonitor International.See All of Our Definitions
This report originates from Passport, our Traditional Grocery Retailers research and analysis database.
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