The Kenyan supermarket Nakumatt has decided to close three of its subsidiaries.
The decision is part of the company's cost cuts policy, which aims to reduce KShs. 1.5 billion in expenses for next year.
The first selling point to close will be that over Kampala, considered the most expensive to maintain and at the same time not profitable enough. But even two historic Nairobi sites will lower the rafters, as they have already reduced their activity in the past few months: this is the one in Hailé Selassie Road and that in Ronald Ngala.
Among other branch offices that have higher costs, especially because of freight transport, there is Malindi's coastal seat.
The Malindi branch has recently undergone significant cuts, such as closure of the bakery and pastry department, and also the reduction of purchases of imported foreign products, to ingratiate the Italian market in particular.
But the seasonality of foreign attendance in Malindi and the habit of buying people at various retail outlets, including the markets and the kibanda, mean that branch revenues are not great.
Surely the next few months will be decisive for the future of the supermarket and also for that of the Oasis Shopping Center which has already undergone some defeats (Mario's Budda's and Best Computer Store) and may be subject to others in the future.