Nakumatt Holdings opened what is intended to be its flagship store in Tanzania at Mlimani City Mall.
The retailer completed the acquisition of three stores as part of its expansion strategy from [DATA SHP:Shoprite Holdings Ltd.] in May, after successfully overturning a ban by a Tanzanian court, blocking its bid to acquire the three outlets.
(READ MORE: Nakumatt MD mum over Shoprite acquisition claim)
Shoprite had stores located in Mlimani City mall and Puga Road, both in Dar es Salaam and another in Arusha. The deal was valued at four billion Kenyan shillings.
“The opening of Nakumatt Mlimani is a long held dream come true as we have been considering various avenues to establish our presence in Dar es Salaam and other parts of Tanzania since 2010. This opening, also sets the stage for our 50th branch opening by mid-August which will be a key milestone as we’ll have achieved our Nakumatt 2.0 Strategy goal a clear six months ahead of the February 2015 target,” Atul Shah, Managing Director at Nakumatt Holdings said.
Nakumatt currently has 34 stores in Kenya, eight in Uganda, two in Rwanda and will soon have four in Tanzania once it opens the remaining two on Puga Road in Dar es Salaam and the other in Arusha. The retailer has had a presence in Tanzania since 2011 at its Moshi outlet.
Nakumatt is also gearing up for the opening of three new stores in Kenya by the end of the year.
Shoprite opened its first shop in Tanzania in 2001 and exited last year after the Tanzanian government warned the South African company against flooding its market with South African products.
Nakumatt is joined by competitor, Uchumi Supermarkets, a Kenyan retailer that has a regional presence in Tanzania as well as Uganda.
Last month, Uchumi applied to the Capital Markets and Securities Authority (CMSA) of Tanzania for approval of its cross-listing plans at the Dar es Salaam Stock Exchange. Currently, the retailer is cross-listed at the Rwanda Stock Exchange as well as the Uganda Securities Exchange.