China Square investors are slowly taking over the giant retail supermarket scene in Kenya. Recently, a new Sh. 1 billion retail store was opened at the Two Rivers Mall, asserting the growing dominance in an ambitious low-cost model expansion plan.
This business sector had previously been dominated by supermarket chains, some of which have since collapsed. They include Tuskys, Uchumi, Ukwala, Nakumatt, Ibrahims and other small outlets that were bought out.
The new Two Rivers China Square outlet features 7500 square feet, roughly amounting to 10% of the mall’s total floor space. The decision to set up was influenced by the mall’s high foot traffic and accessibility.
“We see a lot of potential in this mall due to its location which provides easy access,” said China Square’s Managing Director, Lei Cheng.
Centum Investments CEO James Mworia also noted that the entry of China Square has increased the occupancy of Two Rivers Mall to over 95%.
This space joins a unique and growing portfolio of China Square’s existing outlets including Kenyatta University’s Unicity Mall, The Waterfront and The Karen Mall.
Lei Cheng further expressed that this was only the beginning of a series of expansions to come. Plans are underway to open a China Square facility at the Greenspan Mall in Donholm, Nairobi. This would require an investment of Sh. 300 million.
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However, despite the aggressive push by China Square investors to open more ‘budget-friendly’ stores, concerns have been raised by retail competitors who fear that the aggressive low cost strategy will eventually disrupt market dynamics.
Cost conscious consumers continue favoring the retailers, attracting a loyal base which has forced other competitive retailers to reconsider their prices of goods to stay competitive. The retailer is slowly transforming into the go-to destination for affordable shopping.
Managing Director Lei Cheng stated that they will expand their footprint to beyond Nairobi thus effectively challenging the status quo of the retail landscape.
