On Feb 9th, Uchumi closed 10 stores (including six stores in Nairobi) 580 staff have been put on 30-day notice to be laid off, and also four directors resigned. Over the last few years it has been unprofitable, but with each annual loss announcement, previous MD Thairu used to announce that Uchumi had reached rock-bottom and was on the up-swing. Uchumi will remain with 18 stores they hope to save Kshs. 200 million though the moves.
Hey Bankelele, as usual your Blog is a key resource in researching financial info ! (you topped my google search for uchumi)
Saving ksh 200 mill aside, do you think Uchumi have the framework in place to compete with nakumatt in the near term (2-3 years)?
I have my doubts as an currrent or ptential investor.
I think uchumi is well structured and will consistently build relevant competitive momentum with nakumatt ultimately creating a need for better services and a more balanced market economy for retail supermarkets.