This week Nakumatt announced they had bought the Woolmatt chain of supermarkets even as they opened 4 new branches across the country. This development is meant to give Nakumatt additional presence in the city centre after the demise of Nakumatt Downtown and the demolishing of Nakumatt Thika Road.
Looking at the market, the most formidable player has been Tusky’s who have become the new force to reckon with especially in this period that Uchumi has been restructuring. Tusky’s seems to have hit on a winning strategy targeting the largely big populace of the middle class present in towns around Nairobi. So with this purchase of Woolmatt Nakumatt is looking to tap into this middle class market.
I do see Tuskys increasing their presence in Kenya and continuing to be the dominant market player especially in the Kenyan market as they are already known for their friendly prices rather than the perception Nakumatt has. On the other hand maybe Nakumatt should explore rebranding the Woolmatts as Nakumatt Xpress like the outlet they have in Kahawa Sukari.
This will be an interesting battle and i would urge Tusky’s to also consider going across the border to neighbouring countries and also expect touch competition from the resurgent Uchumi.