By Simon Abaho
The New Supermarket player Carrefour announced the take over of the previously owned spaces by the South African giants Shoprite who are closing shop in Uganda.
They will be taking over the six shops which are Village mall, Acacia mall, Victoria mall, Lugogo mall, Clock tower mall and Arena mall. These were previously being occupied by Shoprite.
Carrefour is owned and Operated by Majid AL Futtaim In Uganda. Carrefour so far has been operating two shops, One at Oasis mall and another in Naalya along the Northern bypass which was opened earlier this year.
Majid Al Futtaim, the exclusive franchisee for Carrefour, announced that it has concluded an agreement with Shoprite Checkers Uganda Limited (i.e. Shoprite Uganda) which will see the transfer of Shoprite’s six Uganda store leases to Majid Al Futtaim by end of the year.
“We welcome the opportunity to bring our unique Carrefour offering of unbeatable value, range, international standards to more customers across Uganda”, commented Hani Weiss, CEO at Majid Al Futtaim Retail
“Majid Al Futtaim is fully committed to creating great moments for the communities we serve for the long-term. This agreement represents our continued investment in East Africa. We look forward to strengthening our offering in the region and supporting local talent through employment and career development opportunities.”
Majid Al Futtaim launched its first Carrefour store in Uganda in December 2019 in Kampala’s Oasis Mall, and in March 2021 opened its second store in Naalya. It currently provides 20,000 products across its stores, of which 98% are locally sourced. Customers are also able to order products online through partnerships with Glovo and Jumia Food.
“Both parties will work closely together to ensure a smooth transition of the stores and its operations. As part of the agreement, the Lugogo Mall and Clock Tower properties will also transfer to Majid Al Futtaim who remain committed to its local supply chain and now, new tenant partners,” a statement by Majid Al Futtaim says.
This will increase their reach to most parts of the Kampala region and this will take their stores to 8
Last month Carrefour opened its 16th outlet in Kenya at the Southfield Mall, in Nairobi’s Embakasi estate, shortly after taking over other Shoprite operations in Diani.
The supermarket chain is riding on a strategy similar to that taken by local retailers Naivas and Quickmart, both of which have been inheriting spaces left by collapsed retailers such as Tuskys and Nakumatt.
This is also besides frequent and huge discounts the retailer offers its clients, but which have been criticized by the market regulator, the Competition Authority of Kenya (CAK), on the basis that the retailer transferred the burden to suppliers.