Cash-strapped retailer Nakumatt Holdings has put some of its goods on sale to clear stock as it plans its recovery strategy.
It is offering a 50 per cent discount on non-food items to raise cash to shore up operations in select branches.
Managing director Atul Shah dispelled speculation that the sale was aimed at clearing stock before the firm winds up.
‘’We are not about to close shop. We are simply clearing stock. Stock clearing is just part of a detailed recovery strategy. The administrator will give you an elaborate plan at appropriate time,’’ said Atul on phone. He said the business has just began
In an advert, the retailer announced a grand sale asking customers to rush to seven of its branches in Nairobi, Nakuru and Kisumu to “shop till they drop”.
Items on discount include shoes, bicycles, stationary and carpets, kitchenware, furniture and clothing.
A source privy to the turnaround plan by Nakumatt told the Star that the retailer is giving out discounts to raise funds to pump into fast consumer goods.
‘’Nakumatt wants to concentrate on fast consumer goods. This is well captured in the administrator’s report and statement of proposals issued in early March this year. It is expected to power operations in its seven branches across the country,’’ said the source.
The retailer, which in February last year was commanded up to 70 per cent of the market share in Kenya, crumbled from a revenue margin of Sh. 52.2 billion to Sh. 14.8 billion as at December.
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It has since closed tens of branches across East Africa whittling down its outlets from 52 last year to seven.
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