The supermarket industry is incredibly fast-paced. There are tens of thousands of products, many staff, and countless shoppers. For the owners, there are many variables to manage daily.

Peter Kang’iri is the CEO of the Kenyan supermarket chain Quickmart. For him, there can never be a substitute for local knowledge and experience in the ever-changing industry.

“As Kenyans, we better understand the opportunities. We know the population, the number of residents in an area and where we need to go for new locations,” he spoke in an interview.

Quickmart supermarket thrives on local connections and its central belief that shopper satisfaction is important. Kang’iri identified a niche opportunity in the Kenyan retail market; local and smaller supermarkets joining together to form a chain.

When he joined Quickmart, it was a family-owned business with just 11 stores. In 2019, Quickmart sealed its first merger with Tumaini Supermarkets which was a small chain. The deal was agreed, on the condition that Kang’iri would oversee the newly merged venture.

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In just 5 years, the merged Quickmart chains have experienced rapid growth to over 60 locations, from large hypermarkets to smaller, express-style stores. They have become synonymous with convenience, fresh products and most of all, free parking.

The growth figures are only increasing, with Quickmart launching at least 4 new stores each year. The CEO is currently working with several partners to scout new locations in different parts of the country. The goal is to reach a diverse market segment.

“The opportunity in Kenya is huge in the retail sector,” he said.

Human Capital

When Kang’iri first joined Quickmart in 2013 as a consultant, his first task was to flash the spotlight on Quickmart’s human capital structure.

Their current workforce of 7,000 employees shows the company’s impressive evolution in fostering a positive corporate culture. However, Kang’iri says that there’s still much to learn from international examples.

“In Kenya, it hasn’t always been easy for retail to attract talent. The future of retail will depend on human capital,” Kang’iri notes.

In practice, this involves setting comprehensive training programs for staff that cover everything from understanding product details and managing administrative tasks to negotiating with suppliers.

“That will be the major shift in any successful retailer in Kenya,” he adds.

E-Commerce Shift

Kang’iri’s next big move for Quickmart has been blending tech with human expertise for smoother operations.

In the last 5 years, he and his team have been hunting for the perfect IT system to bridge the gaps between their front and back-end processes.

“The end-to-end training and new technology can take us on a digital transformation journey where we will be moving into the next phase of Quickmart,” he says.

Quickmart has resolved to drive more into E-commerce as Kang’iri seeks to increase the retailer’s online market share from about 1% to 5% in the next 3 years.

While Kenyan retail customers may still be more interested in physical visits to the supermarket, according to Kang’iri, times are slowly changing, with more and more Kenyans moving to digital products and services.

“E-commerce is not a big factor in the Kenyan retail sector. Most of the local retailers, they’re still in the implementation phase,” Kang’iri says.

Idea Execution

Kang’iri’s strategy at Quickmart relies heavily on building strong ties with suppliers. Rather than using a central warehouse, they opt for a direct model with suppliers to keep their supply chain running smoothly.

“We have the inventory, we have our fleet management, we place the order and the order is normally supplied within two days. Within 48 hours, we get our product on the shelf,” Kang’iri explains.

Unlike many sectors where suppliers interact on a weekly or monthly basis, Quickmart’s approach involves daily engagement with suppliers, especially for perishable items like dairy and meat.

This close involvement ensures that operations run smoothly and products remain fresh throughout the day, starting as early as 4 am.

A wide-ranging supplier network enables Quickmart to provide customers with an array of products. Currently, 65 suppliers account for over 70% of the total trade with Quickmart.

Quickmart’s strategy is leveraging partnerships like Basic and Unilever to simplify and improve their customer’s experience.

Building partnerships helps Quickmart enhance their product range and maintain their competitive edge in the face of competition in a crowded market.