New Study: Grocery Retailers in Kenya

The retail structure in Kenya is evolving, with a move from traditional to modern retailing. A growing mall culture in Kenya has promoted the rapid expansion of grocery retailing due to the increasing number of supermarkets and hypermarkets, which currently account for a significant share of total retailing sales. Supermarkets and hypermarkets collectively accounted for 34% of total grocery retail value sales and 20% of overall retail value sales in 2014. Despite the growing presence of modern retailers, traditional retailing continued to dominate, especially in rural areas. Smaller outlets such as independent small grocers are now mimicking bigger outlets in terms of product offering, consumer shopping experience and packaging.

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Competitive Landscape

Nakumatt Holdings Ltd maintained its leading position in grocery retailing in 2014 with a value share of 8%. Ranked second was Tuskys with a value share of 6%. Both Nakumatt and Tuskys have pursued an expansion strategy with a focus on the residential market. Additionally, the strong positioning of outlets for consumers’ convenience and product diversification have been major factors contributing to their popularity. Tuskys’ popularity has grown further with the addition of forecourt outlets through a partnership with Vivo Shell Kenya. Despite the destruction of the company’s flagship store in the Westgate Mall attack in September 2013, Nakumatt continued to implement its strategic expansion programme by rolling out new outlets.

Industry Prospects

The grocery retailer channel is expected to register a value CAGR of 3% at constant 2014 prices over the forecast period. Modern grocery retailing is expected to outperform traditional grocery retailing. This is expected to be driven by the continued development of the housing industry, increasing government investment in road infrastructure, the growing middle-classes and increasing urbanisation. Although unpackaged groceries will remain popular due to the existence of open-air markets and kiosks, there will continue to be a shift from unpackaged to packaged groceries due to the convenience offered by modern retail outlets and their competitive prices. These changes in grocery retailing are expected to be long term as consumers will seek convenience, good quality and affordable products, which modern grocery retailers will be able to provide.

Report Overview

Discover the latest market trends and uncover sources of future market growth for the Grocery Retailers 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.

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