Shoprite lays off 104 workers following the closure of Karen outlet

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Shoprite, Africa’s biggest supermarket chain will dismiss 104 staffs following an announcement made to close the Waterfront branch in Karen. The decision was reached in regard to the reduced flow of customers.

“Endeavour to continue trading at the Waterfront branch is no longer viable”. It is envisaged that the extent of the redundancy will impact all employees at the said branch. There are currently 104 persons employed at the branch of which 74 are KUCFW members.” Says Shoprite in a notice to the Kenya Union of Commercial Food and Allied Workers (KUCFW)

The closure of the branch will likely affect Shoprite development plans in Kenya. Currently, it has three branches in the country and has plans to expand by opening seven new stores, six being in Nairobi.

“Retail in Kenya is in total disarray…we could now go in and secure premises without paying anything other than the agreed rental,” said the Shoprite holding chain before entry into Kenya. This was an opportunity offered by the collapse of top retailers in Kenya like Uchumi and Nakumatt.

Shoprite attracts many customers to the shopping complex, and its closure will likely affect Karen’s Waterfront Mall. However, the Muguku family, who own the Waterfront Mall have assured customers that their demands will continue to be met by their other game, grocers’ supermarket.

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Anthony Kiratu is the Founder of Finsolutions. He is a financial analyst with over 5 years experience in research, investment advisory, valuation and financial modelling. Anthony is a member of the Institute of Certified Investment and Financial Analysts and Institute of Certified Public Accountants of Kenya. He is passionate about development of African Capital Markets through training of investors and dissemination of information for sound financial and investment decision making process. He is also a part-time lecturer in the Certified Investment and Financial Analyst course in the subjects of International Finance, Portfolio Management, Equity Investment Analysis, and Fixed Income Securities. Email: anthony@finsolutions.co.ke Contact: +254 780216631

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