Supermarket chain Uchumi has recorded a sh3.2 billion loss in the year ending June 2015, indicating the tough environment it has operated in the past one year.
Uchumi supermarket board sacked the previous CEO Jonathan Ciano in June this year and hired Dr. Julius Kipng’etich to spearhead the recovery of the company.
Last year, the company recorded sh491 million profit.
The main challenge the new CEO faced is huge pending bills from suppliers
“One of our greatest challenges as I came in was supplier debt, which we are addressing. A majority of our suppliers are back, and the platforms we are currently providing should be sufficient to ensure all our stakeholders are happy,” said Dr Kipng’etich.
Uchumi is the only listed supermarket chain in the Nairobi Securities Exchange (NSE) and faces still competition from growing outlets like Nakumatt, Tuskys and Naivas.
Uchumi’s revenue dropped from sh14.6 billion to sh12.9 billion. This represented an 11.6 percent drop in revenues.
King’etich who was appointed in August this year was however emphatic, during a previous interview at The Standard Group, that Uchumi Supermarket will bounce back and thrive.
“We are moving our local stores to better locations as the clean-up exercise of some of our stores continues. I want to assure our customers and all other stakeholders that Uchumi will be the Walmart [US-owned multinational retailer] of Africa. Our dreams are valid.”