French retailer Carrefour SA outlet, Majid Al Futtaim Holding, plans to expand its presence in Kenya as it expands its operations in eastern and southern Africa. The expansion of the retailer in Africa is expected to heighten the competition for retail companies like the biggest grocer in the continent' Shoprite and Massmart Holdings owned by Wallmart.
The stagnant economic growth that curbs customers spending in the region caused the companies to look for alternatives outside their home markets in South Africa. Frank Moreau, the county manager of Majid said during an interview that the company plans to operate in as many as five markets in the next four years.
He also said that South Africa is among the 12 African countries where the company may consider purchasing an existing entity. South Africa has the most developed retail market on the continent. Moreau said on Monday that they have already visited South Africa and if the company plans to enter there, it will not be by creation, it might be by acquisition.
The company is popularly known as MAF. According to reports, the company plans to add two more stores in Kenya before the year ends and it is expecting to open in at least one new outlet in East Africa in that period. Moreau also said that the company is open to all different options. He added that if MAF has some information that some owner or group wants to sell, they are not closed and they will study it.
The company has operations in 15 countries. its operation in Kenya started in 2016 and, since then, it has grown the number of its Carrefour outlets to seven. The growth is at the time when the competitions that include Nakumatt Holdings and Uchumi Supermarkets have been forced to close outlets to pay the debt.
Moreau also said that the company sees an opportunity for its partnership with online retailer Jumia Technologies AG which MAF is using to offer express deliveries in Kenya.
Recently, Force Ouvriere union revealed that Carrefour its plans to cut 1,229 jobs to downside its large hypermarket stores in France in aid of its plan to increase sales and profit in Europe.
The company confirmed to Reuters that it is negotiating for a conventional collective bargaining agreement but they did not discuss any details over possible job cuts. Reports said that the cuts and downsizing will come after the removal of jewelry corners in hypermarkets.
