Nakumatt Holdings plans to double its local and regional market share through a number of customer experience enhancing projects. Currently enjoying less than 25% market share of the formal retail space, Nakumatt Holdings will be seeking to retain a bigger slice of the mid to premium segment.
Through this strategy, the retailer will also be seeking to grow its gross revenue to more than $1 billion (Sh85 billion) in the medium term period, while expanding its footprint across East Africa. The retail chain has already embarked on a stores refurbishment programme geared at refreshing its shopping floor ambience to global standards. The firm will also be undertaking weekly sales offers for basic commodities under the Nakumatt Super Savers programme.
Nakumatt Holdings Regional Strategy and Operations Director Thiagarajan Ramamurthy says the firm will increase its investments in in 2015 to accelerate growth. “We are looking ahead for wholesome growth and we will not be deterred by new entrants into the local market as we are firmly focused on revolutionalising the customer experience on a number of fronts,” Mr Ramamurthy said. He said the pilot refurbishment works at Nakumatt Village Hypermarket are nearing completion and the upgrade will be rolled out to other branches progressively from next year.
He said Nakumatt enjoyed a steady business recovery in the festive season which he figured would translate to a 30% growth through the period. The retail giant ran the Nakumatt Christmas Bonanza Customer reward programme in which customers still stand a chance to win vehicles among other consolation prizes.
The retailer is also enjoyed high volume purchase of gift vouchers by local corporates, individuals and non-governmental organisations’ for their festive season reward schemes, a development that was expected to fuel growth during the festive season running through to late January 2015.
“At Nakumatt, we are anticipating positive growth of up to 30% beginning November to Late January next year as we are witnessing a steady footfall growth across our branch network,” said Nakumatt Holdings Managing Director Atul Shah. “Since mid-April, we have noticed a footfall recovery particularly in the major shopping malls which had earlier dropped to worrisome levels.”
Globally, the National Retail Federation in its Gift Card Spending Survey, projected that the average person who bought gift cards last Christmas season, spent $172.74, up from $163.16 in 2013. Total spending is expected to reach $31.74 billion. In the survey conducted last in November 2014, NRF established that 62% of shoppers said they would like to receive a gift card, making gift cards the most requested gift item eight years in a row.