Nakumatt

Nakumatt was a Kenyan supermarket chain. "Nakumatt" is an abbreviation for Nakuru Mattress.[1]

Nakumatt Holdings Limited
TypePrivate
IndustryRetail trade
Founded1987
Defunct2019
HeadquartersNairobi, Kenya
ProductsSupermarkets
Websitewww.nakumatt.net

Overview

As of December 2015, Nakumatt had 65 stores in the African Great Lakes countries of Kenya, Uganda, Rwanda and Tanzania. It employed over 5,500, and had gross annual revenue in excess of US$450 million.[2] At that time, it had plans to enter other African countries and to increase the number of stores in the countries where it already had a presence.[3] In October 2017 the company ran out of funds and did not pay rents or wages. 60 stores were closed. As of August 2018 there was just five stores all of which were in Kenya. Nakumatt now has less than 200 Employees.

Regional subsidiaries

On 23 August 2008, Nakumatt opened its first store outside Kenya in the Union Trade Center, in Kigali, Rwanda.[4] In June 2009, the first Nakumatt store in Uganda opened on Yusuf Lule Road on Kololo Hill, in central Kampala, the capital city. In November 2010, Nakumatt expanded its footprint in Kampala by acquiring Payless Supermarket, a Ugandan supermarket chain with two stores in the Kampala suburbs of Bugoloobi and Bukoto, bringing the number of stores in Uganda to three.[5] The initial investment in the store in Kololo was approximately US$3 million. The two Payless Supermarket stores cost an estimated US$650,000. Nakumatt plans to expand the new stores at a later date.[6] In February 2016, the retail chain announced plans to open five new stores outside Kenya during the first half of the year.[7]

Branches

As of December 2019 the supermarket chain had five stores in the Kenya, including at the following locations: one in Nakuru and four stores in Nairobi. Prestige, Lavington, Embakasi, Mega. The Mega branch on Uhuru Highway now takes a smaller space adjacent to the proposed Carrefour Mega.[8]

Finances

Turnover in 2006 was over US$200 million, up 120% on the previous year.[9] In 2013, turnover (annual gross revenue) was estimated at about US$650 million.[10]

Ownership

Nakumatt was a wholly Kenyan, privately held company, owned by the Atul Shah family.[11] In July 2013, Kenyan print media indicated that the chain planned to sell a 25% stake to yet an unidentified investor and use the funds for regional expansion. After that sale, the Shah family will still remain the largest shareholder in the company.[12]

Safety

The chain has a poor safety record and has faced strong criticism mainly regarding shoppers' and employees' safety. Main case in point is the 2009 Nakumatt fire in which over 29 people lost their lives. However, the management has taken steps to ensure that such accidents do not happen again.

2009 Nakumatt fire

A Nakumatt store in Nairobi suffered a massive fire on 28 January 2009, killing about 29 people.

High-end malls

Nakumatt has played a significant role in the urban development of Kenya's largest and capital city, Nairobi, through the construction of upscale malls throughout the Nairobi area, which include brand name stores, banks, theaters and international eateries.

Sole Sad & Invisible

The website of Nakumatt Holdings Limited was hacked by Iranian hackers called Sole Sad & Invisible. The website as of 31 May 2014 shows a message that the website is under construction. There is a new website www.nakumatt.net [13]

Closure and going out of business

Nakumatt began experiencing serious cash-flow issues in 2016. It was unable to meet its financial obligations to landlords, suppliers, and staff. An administrator was appointed to help it re-gain financial footing. However, in December 2019 the retail chain sold the last six branches to Naivas Supermarkets in a deal that will see the Nakumatt brand completely disappear by the end of 2019. Creditors formally voted to liquidate the company on 7 January 2020 [14][15][16]

See also

References
  1. Morris Kiruga (20 October 2013). "Supermarkets And Their Peculiar Link With Nakuru". Nairobi: Daily Nation Mobile. Retrieved 31 May 2014.
  2. "Nakumatt Business Overview". Nakumatt Holdings. Archived from the original on 1 July 2014. Retrieved 31 May 2014.
  3. Miriri, Duncan (19 April 2012). "Nakumatt: From Mattress Shop to African Chain". Reuters. Retrieved 31 May 2014.
  4. Frank Kagabo, and Kihesi Rwaguma (24 August 2008). "Rwanda: Nakumatt Opens in Rwanda". The New Times (Rwanda) via AllAfrica.com. Retrieved 31 May 2014.
  5. Gakure-Mwangi, Peter (9 November 2010). "Nakumatt Opens 24 Hour Outlet in Uganda's Bugolobi Suburb". East Africa Business Week. Retrieved 31 May 2014.
  6. Ssempijja, David (4 November 2010). "Nakumatt Takes Over Payless Supermarket Operations". New Vision. Archived from the original on 8 December 2010. Retrieved 31 May 2014.
  7. Mutegi, Mugambi (2 February 2016). "Nakumatt to open five more outlets in neighbour countries". Business Daily Africa. Nairobi. Retrieved 2 February 2016.
  8. "Nakumatt to open smaller outlet on Uhuru Highway". Business Daily. NMG. Retrieved 3 December 2019.
  9. Ondari, Justus (30 May 2007). "Kenya: Nakumatt Turnover Grows by 150%". Daily Nation Online via AllAfrica.com. Retrieved 31 May 2014.
  10. Mwaniki, Charles (31 October 2013). "Nakumatt Valued At KSh34 Billion, Says MD". Business Daily Africa. Retrieved 31 May 2014.
  11. James Kariuki, and Charles Mwaniki (8 November 2016). "Mwau exits Nakumatt with sale of 7.7pc stake". Business Daily Africa. Nairobi. Retrieved 8 November 2016.
  12. David Herbling (24 July 2013). "Nakumatt Starts Talks On Sale of 25% Stake". Business Daily Africa. Nairobi. Retrieved 31 May 2014.
  13. "Website of Nakumatt Holdings Limited". Nakumatt Holdings. Retrieved 31 May 2014.
  14. Paul Wafula (17 December 2019). "Death of Nakumatt After Revival Efforts Fail". Daily Nation. Nairobi. Retrieved 17 December 2019.
  15. Bonface Otieno (4 December 2020). "Retail giant folds as creditors make final close of Nakumatt". Business Daily Africa. Nairobi. Retrieved 4 January 2020.
  16. Bonface Otieno (7 January 2020). "Nakumatt collapses after creditors vote for liquidation". Daily Monitor. Retrieved 8 January 2020.
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