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Nakumatt: Another ailing Kenyan company
Rank: Elder Joined: 3/29/2011 Posts: 2,242
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hardwood wrote:Ericsson wrote:hardwood wrote:Why is it taking forever for malls to have other supermarkets take up space that was occupied by nakumatt? Malls should just swallow their pride and invite local supermarkets such as naivas, tuskys etc to take up the space instead of the malls waiting forever for foreign supermarkets to come and set shop. Local supermakets like Naivas and Tuskys can't afford the rent. So for how long will they wait for shoprite & co to come from south africa and set up shop......1yr, 2,3,5? It's like having your apartment empty for months on end as you plead with a certain "high end tenant" to rent it .....while the monthly mortgage payments are killing you. @hardwood, its all about the business model and the ecosystem around it. A high end mall will be built around an ecosystem around luxury all around from the supermarket, the gold stores around, branded clothing lines etc. It becomes hard for them when Nakumat exits and they ave to bring in a local butcher next to LC Java etc. Its the model thing "Things that matter most must never be at the mercy of things that matter least." Goethe
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Rank: Elder Joined: 7/26/2007 Posts: 6,514
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hardwood wrote:Why is it taking forever for malls to have other supermarkets take up space that was occupied by nakumatt? Malls should just swallow their pride and invite local supermarkets such as naivas, tuskys etc to take up the space instead of the malls waiting forever for foreign supermarkets to come and set shop. Because Naivas and Tuskys have learnt from Nakumatt that reach is not equal to profitability. Some Malls will never get replacement supermarkets. Business opportunities are like buses,there's always another one coming
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Rank: Elder Joined: 7/28/2015 Posts: 9,562 Location: Rodi Kopany, Homa Bay
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Gathige wrote:hardwood wrote:Ericsson wrote:hardwood wrote:Why is it taking forever for malls to have other supermarkets take up space that was occupied by nakumatt? Malls should just swallow their pride and invite local supermarkets such as naivas, tuskys etc to take up the space instead of the malls waiting forever for foreign supermarkets to come and set shop. Local supermakets like Naivas and Tuskys can't afford the rent. So for how long will they wait for shoprite & co to come from south africa and set up shop......1yr, 2,3,5? It's like having your apartment empty for months on end as you plead with a certain "high end tenant" to rent it .....while the monthly mortgage payments are killing you. @hardwood, its all about the business model and the ecosystem around it. A high end mall will be built around an ecosystem around luxury all around from the supermarket, the gold stores around, branded clothing lines etc. It becomes hard for them when Nakumat exits and they ave to bring in a local butcher next to LC Java etc. Its the model thing Some of these "luxury supermarkets" everyone is awaiting are just normal supermarkets in their home countries. Their regular naivas or tuskys down the road. But when they come to kenya they are seen as high end and are the only ones who can set up in high end malls. Anyway kenyans love foreign things.  
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Rank: Elder Joined: 7/28/2015 Posts: 9,562 Location: Rodi Kopany, Homa Bay
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Reminds me of the hype about Game Stores/Walmart's entry into Kenya. The entry was underwhelming just like Carrefour's newer stores are disappointing. I think we should try and build local businesses like had happened to nakumatt before the collapse.
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Rank: Elder Joined: 7/28/2015 Posts: 9,562 Location: Rodi Kopany, Homa Bay
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Carrefour and LC Waikiki open megastores at TRM. Shoprite opening at Garden city.
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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Nakumatt reopens Mega. Good news there's no match to Nakumatt "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Member Joined: 2/20/2007 Posts: 767
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murchr wrote:Nakumatt reopens Mega. Good news there's no match to Nakumatt Bond holders are  They must find it difficult....... those who have taken authority as the truth, rather than truth as the authority. -G. Massey.
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Rank: Member Joined: 8/17/2010 Posts: 110 Location: Nairobi
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Game at that unfinished place on Karen road will close down in less than 1 year.
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Rank: Elder Joined: 7/28/2015 Posts: 9,562 Location: Rodi Kopany, Homa Bay
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Rank: Elder Joined: 12/7/2012 Posts: 11,908
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[quote=hardwood]Choppies to exit Kenya https://www.businessdail...2544-n0ldpiz/index.html[/quote] From the article, looks likes a mismanaged company. In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: Elder Joined: 3/19/2010 Posts: 3,504 Location: Uganda
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retail business is a hard nut to crack punda amecheka
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Rank: Elder Joined: 12/4/2009 Posts: 10,678 Location: NAIROBI
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newfarer wrote:retail business is a hard nut to crack Big 3 Naivas Tuskys Carrefour Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 7/26/2007 Posts: 6,514
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newfarer wrote:retail business is a hard nut to crack Choppies issues were mismanagement and internal board wrangles. Business opportunities are like buses,there's always another one coming
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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Conquestador wrote:Game at that unfinished place on Karen road will close down in less than 1 year.
Waterfront... possunt quia posse videntur
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Rank: Elder Joined: 12/7/2012 Posts: 11,908
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Some are doing very well. Carrefour pays off Sh1.5bn loan before maturity. https://www.businessdail...65138-btsi46z/index.htmlIn the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: Elder Joined: 7/28/2015 Posts: 9,562 Location: Rodi Kopany, Homa Bay
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newfarer wrote:retail business is a hard nut to crack Why is it hard? You lease a big room and put shelves, the suppliers stock the shelves, you sell the goods and pay them suppliers after 4 months.
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Rank: Member Joined: 1/18/2019 Posts: 185 Location: kenya
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hardwood wrote:newfarer wrote:retail business is a hard nut to crack Why is it hard? You lease a big room and put shelves, the suppliers stock the shelves, you sell the goods and pay them suppliers after 4 months. Margins are tiny
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Rank: Elder Joined: 7/26/2007 Posts: 6,514
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nairobby wrote:hardwood wrote:newfarer wrote:retail business is a hard nut to crack Why is it hard? You lease a big room and put shelves, the suppliers stock the shelves, you sell the goods and pay them suppliers after 4 months. Margins are tiny pilferage can eat your whole net margin... Business opportunities are like buses,there's always another one coming
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Rank: Elder Joined: 2/22/2009 Posts: 2,449 Location: Africa
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Rank: Member Joined: 1/22/2015 Posts: 682
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KulaRaha wrote:nairobby wrote:hardwood wrote:newfarer wrote:retail business is a hard nut to crack Why is it hard? You lease a big room and put shelves, the suppliers stock the shelves, you sell the goods and pay them suppliers after 4 months. Margins are tiny pilferage can eat your whole net margin... Given this, in Kenya the only supermarket that can work is a single branch monitored from top to bottom by the owner. Scaling up and putting external management in place is just signing your death warrant
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Nakumatt: Another ailing Kenyan company
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