Troubled Kenyan retailer Tuskys Supermarkets has re-launched its business after it secured Kshs 2 billion funding from undisclosed investors. The retailer says the exercise will see all the fifty-three branches rebranded to improve customer confidence.
According to Head of Business Development John Muitiriri the supermarket chain has also struck a deal with suppliers that will see all branches restocked.
The family-owned retailer has been teetering on the brink of closure due to mounting debts, falling supplier confidence, and dwindling cash flow to replenish essential items on the shelves, leading to empty shops.
In August, Tuskys announced it had secured funding amounting to Kshs 2 billion from Mauritius-based private investors in a major reprieve to the owners and debtors.
The retailer has announced a major re-branding exercise that will see all its aging fifty-three branches get a face-lift.
“This is an exercise we are doing in all our stores across the country. For this reason, we are going around the counties just to ensure we are able to re-launch and being able to convince our customers that we are back.” Muitiriri said.
Muitiriri said the company has also struck a deal with suppliers that will see all branches restocked. Over the weekend the company re-launched Kilifi and Malindi Tuskys retail stores as part of their move to bring back confidence to their clients.
“When you look at retail business in terms of key expenditures, talk of rent and staff salaries, these are constants. When the disposal income happens and there is less spending, of course, a business tends to shake a bit.” Muitiriri added.
Tuskys has lost significant clout to rivals Naivas and newcomer Quickmart which has been on an expansion spree countrywide.
Last month, the company embarked on a new recovery plan that guarantees prompt payments for stocks supplied. Sales registered via the new suppliers’ portal enjoy end to end protection, and the funds can only be used to settle supplier dues on a priority basis.