Naivas sets record with 110th store in Tatu City

KENYA – Naivas Supermarket has achieved a milestone by inaugurating its 110th store in Tatu City, Kiambu County, solidifying its position as Kenya’s leading retailer. 

This expansion nearly doubles the footprint of its closest competitor, Quickmart, which operates 60 branches across 14 counties. 

The new outlet is strategically located to serve the growing community within Tatu City and its neighboring areas.

Despite prevailing economic challenges, Naivas remains steadfast in its commitment to affordability and value. 

“We are excited to bring this new outlet to Tatu City, which we believe will significantly enhance the shopping experience for residents and surrounding communities,” Chief of Strategy, Andreas Von Paleske, expressed the company’s enthusiasm about the new store.

Competitive retail landscape

Kenya’s retail sector has witnessed substantial growth in recent years, driven by a rising middle class, urbanization, and technological advancements. 

According to a Knight Frank report, the sector maintained stability, with the average rental yield at 7.5% in 2023, up from 6.8% in 2022. The average occupancy rate also increased to 79.4% in 2023, indicating strong demand for retail space.

Naivas’ strategic expansion has not only bolstered its market presence but also contributed to employment, with over 12,000 individuals on its payroll, averaging 100 staff per branch. 

In comparison, Quickmart employs over 7,000 people across its 60 branches. Other notable retailers include Chandarana with 28 outlets, Carrefour with 26, and Cleanshelf operating 13 branches. 

Of these, only Chandarana and Cleanshelf are locally owned, while private equity funds hold controlling shares in both Naivas and Quickmart.

Strategic growth amid economic challenges

The launch of the new Naivas store comes at a time when consumers are grappling with economic challenges. 

However, the retailer has maintained its focus on its core promise of affordability and value. It continues to invest in growth, leveraging market research to identify and address gaps in consumer demand.

“As the retail landscape continues to evolve, we remain focused on delivering a world-class shopping experience,” Von Paleske emphasized Naivas’ commitment to enhancing the customer experience.

The company also highlighted its dedication to customer satisfaction through ongoing research and a keen focus on addressing market needs.