Kenyan retailer Tuskys Supermarkets adopts franchising model to accelerate growth

KENYA – Tuskys Supermarket is seeking to cement its dominance in the retail sector by franchising its brand to Small and Medium-sized Enterprises (SMEs) in all 47 counties as part of an aggressive growth plan, reports Business Daily.

Tuskys chief executive Dan Githua said the aim of the franchising strategy is to promote SMEs since they are the key engine to the country’s economic growth.

Speaking while launching Tuskys’ 60th outlet at Nanyuki Mall, Mr Githua said the firm’s national office in Nairobi was ready to assist applicants who wish to be enjoined in the programme dubbed ‘Tuskys Commercial Trade’.

“Anyone with space for business at any part of this great nation, we are readily available to brand their premises and avail our products to them at a fair price. This is one of our strategy to uplift SMEs,” said Mr Githua.

In Laikipia County, the supermarket chain is aiming to roll out other outlets in Rumuruti and Nyahururu towns.

Tuskys first piloted a franchise branch in Nairobi as part of several growth strategies that also include merging with smaller retailers by 2024.

The plan includes partnering with local investors who will use the Tuskys brand name as well as setting up smaller stores in Kenya and Uganda.

“We will roll out a lot of stores, especially smaller format outlets on franchise model across East Africa and it is going to happen at the same time … 

“We are allowing our partners to use the Tuskys brand, IT, human resource and supplier management systems among our other resources,” said Mr Githua.

“The small retailers are also improving, and we see a lot of opportunity for consolidation and aggregation in the retail industry. Data available shows that we still have an opportunity to have three times more the number of supermarkets in Kenya.”

Tuskys is currently the biggest retailer in the country. It employs nearly 6,150 people, 6,000+ in Kenya and 150 in Uganda. It owns and operates sixty supermarkets in Kenya and Uganda at Makerere, Ntinda and Kitinta.

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