Kenya's Uchumi Supermarkets says shut down four outlets
09 October 2015, 20:46
Nairobi - Kenya's Uchumi Supermarkets has shut down four of its stores in Kenya and Uganda as part of a turnaround plan by its new chief executive that involves closing non-performing outlets.
Last month, CEO Julius Kipng'etich said Uchumi would reorganise the management of underperforming branches or could close or relocate the worst performers to try to return to profit growth next year.
Kipng'etich said on Wednesday that the closures of two stories in the capital Kampala leave only three of its outlets remaining in Uganda.
"We have closed down Kabalagala and Natete branches in Uganda as part of the ongoing rationalisation of the business in order to stop financial bleeding and get Uchumi Supermarkets back on its feet," Kipng'etich said in a statement.
Also read: SABMiller
shareholders urged to seize opportunity'
"In Kenya, this exercise has resulted in the closure of Maua and Syokimau branches and will continue until we get the business back on the path to growth and profitability."
Maua is in central Kenya and Syokimau sits outside the Kenyan capital Nairobi.
Uchumi, which operates 37 stores in Kenya, Uganda and Tanzania, fell to a pretax loss of 262 million shillings ($2.54 million) for the half year to Dec. 31.
It said in late August its full-year earnings were expected to fall by at least 25 percent from the previous year.
Kipng'etich, a former chief operating officer of Equity Bank , was appointed in August to help revive the chain after it fired its previous head.