Uchumi’s Lang’ata Hyper Branch Set For Take-over

Uchumi Supermarket has advertised offering its Lang’ata Hyper Branch to a franchisee to run the high end branch on their behalf.

In an advert run in the local dailies, the embattled chain retailer called on business moguls with super-financial ability to run the business.

“Uchumi Supermarket Plc is now exploring the piloting of a Franchisor-Franchisee Business Model. Successful Franchisee candidates shall be required to demonstrate financial resources in the high hundreds of millions of shillings and the technical capability to undertake this venture,” read the advert in part.

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Under Franchisor-Franchisee Business Model, the franchisor (Uchumi in this case) owns the overarching company, trademarks, and products, but gives the right to the franchisee to run the franchise location, in return for an agreed-upon fee.

Uchumi has been running on losses, closing branches and retrenching workers. In February this year, the retailer announced that its half year losses had widened by 63% to Sh895 million.

In three years, the cash-strapped retailer has closed 24 branches, remaining with only 16 branches countrywide.

Offering the Lang’ata branch to a franchisee looks like a way to remain afloat with the prime branch, which has been one of its prime branches in the city after the closure of the Sarit Centre branch early this year.

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