Shoprite and France’s Carrefour go toe-to-toe in Kenya
Kenya is turning into an interesting battleground between South African grocery chain Shoprite and French rival Carrefour. Shoprite has the advantage in the short term, but as Kenya’s middle class grows, Carrefour will become stiffer competition, BMI Research said in a note e-mailed on Wednesday morning. BMI estimates the number Kenyan households with disposable incomes above $10,000 a year will grow from 277,000 in 2018 to 483,000 in 2022. "This is typically the range that grocery stores like Carrefour and Shoprite would target as their core consumer base but this represents less than 3% of the population," BMI said. "They will therefore also have to compete among the discount segment in order to capture market share. This may result in both companies recording profit losses over the coming years, as they cut prices in order to compete and grow their revenues." In February, Shoprite announced it had secured space in seven prime shopping malls in Kenya, planning to open them over th...
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