Uchumi Supermarket has announced closure of its hyper Sarit Centre branch in Westlands, Nairobi in a move to cut cost.
The outlet has been in operation for the last 30 years.
In a statement on Friday, the retailer’s acting CEO Mohammed Mohammed said the closure of the outlet will officially be made on Sunday.
“The decision is part of the retail store’s comprehensive turnaround plan and new cost management strategy that seeks to streamline its store portfolio and intensify cost efficiency efforts per store,” said the CEO according to the Star.
Uchumi’s Chief Operating Officer Andrew Dixon said they are looking to relocate the outlet to cost-effective spaces and in strategic positions.
“We also remain focused on executing key initiatives to drive improved performance in an effort to strengthen our capital structure to support the business going forward,” he said adding it will help them settle outstanding debts, manage and optimize costs.
The retailer also revealed talks are at an advanced stage to sell a piece of its land in Kasarani in a strategy to get back to profitability.
“The sale of the Kasarani land is a step towards restoring the business to a sustainable level as we continue to pursue more long-term initiatives that will lead to profitability,” stated Mohammed.
In the half year ending December 31, 2017, Uchumi posted a loss of Sh895.12 million.
Uchumi suffered a blow after its immediate former CEO Julius Kipngetich who was expected to steer the retailer back to profitability quit for Jubilee Insurance early this year.
Out of 20 branches across the country, 19 of them including the soon-to-be-closed Sarit Centre branch were restocked ahead of last year’s festive season.