Quickmart celebrates 18 years of growth

Business
By Sofia Ali | Aug 23, 2024

Quickmart Supermarkets recently celebrated its 18th anniversary, marking a significant milestone in its growth amidst economic challenges, especially in the retail sector.

Deputy CEO and Board Member Jacques Dome highlighted Quickmart's rapid rise. The chain, ranked 11th by FT/Statista in 2022, now stands as Kenya’s second-largest supermarket chain, a position achieved after Adenia, an Africa-focused private equity firm, took over the company, fuelling its growth.

Since its humble beginnings with a single store in 2018, Quickmart has expanded to 60 branches across 14 of Kenya's 47 counties.

However, Quickmart’s journey has not been without challenges. The Kenyan supermarket sector has faced economic difficulties, exacerbated by the COVID-19 pandemic, which led to the collapse of several competitors and created a tough business environment.

The depreciation of the Kenyan shilling and rising inflation have increased the cost of imported goods, which constitute about 40 per cent of Quickmart's offerings, including electronics from China. These economic pressures have reduced customers' disposable income and raised operational costs for Quickmart, including higher payroll taxes.

Kimani Lugendo, chair of the Supplier’s Association Kenya, praised the supermarket chain for its reliability in honouring payments and credit limits, offering stability in a challenging market.

Luck Ochieng, Managing Director at Unilever Kenya, commended Quickmart for learning from past industry failures and adapting its operations to mitigate similar risks.

Chief Marketing Officer Betty Wamaitha said the next step involves entering the e-commerce market with the launch of the Q-soko mobile application in September. This initiative aims to capitalise on the growing trend of online shopping.

Quickmart’s success stands in stark contrast to the struggles of other Kenyan supermarkets, such as Uchumi, Nakumatt, and Tuskys, which have closed, and the exit of foreign retailers like Shoprite. The company’s robust cash flow, supported by a $25 million investment from Adenia, has played a crucial role in its expansion and stability.

Quickmart is planning regional expansion into neighbouring Uganda and eventually the Democratic Republic of Congo.

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