Shoprite, Africa’s largest retail chain has announced the sacking of 115 employees and shut down its second branch locally in under five months as a result of low customers.
The retail giant which launched back in 2018, has sent notice to the Kenya Union of Commercial Food an Allied workers (KUCFW) of their intention to shut down the city mall branch in Nyali, Mombasa.
The notice read in part: “Endeavour to continue trading at the Nyali branch is no longer viable. Financial and other data will be provided and discussed at a proposed meeting. It is contemplated that the intended date of termination on account of redundancy will be August 31, 2020. There are currently 115 persons employed at the branch of which 92 are members of KUCFW.”
In April the vendor shut down its Karen Branch where 104 staff lost their jobs, a move that led to a court case with the landlords of Waterfront Mall.
The shutting of the stores will dampen the expansion plans in Kenya, where it had been left with two stores and had earmarked introducing seven branches, six of which were to be in Nairobi.
The closing down of it this branch is happening at a time when there is heightened competition from monied vendors like Naivas and Carrefour in an industry where local supermarket chains like Tuskys are trying to stay afloat amid low sales that have led to huge debts.