Naivas, Leading Supermarket in the Country, Breaks Record Opens 100th Store in Kenya

Naivas is the first supermarket to open more than 100 branch networks across Kenya. Naivas is now the

leading supermarket in the country, thwarting other competitors like Quickmart and Carrefour, the

French-owned company. The supermarket has come a long way, Naivas first opened in 1990 as a small

grocery store in Rongai. Naivas is known for delivering freshness, variety, and affordability to their

customers.

Naivas Major Accomplishments Over the Years

Naivas is keen on taking control of the market gap following the death of Nakumatt, Uchumi and

Tuskys.“Our goal is to offer customers new and convenient ways to access their essentials. Given the

limited reach of modern retail in the area, the opportunities are vast, and we are dedicated to filling these

gaps," Paleske, the Naivas Chief of Strategy said. Currently, Niavas has employed more than 10,000

employees with approximately 100 employees in each branch.

Diversification of products offered

Apart from the regular products sold in all supermarkets like household goods, electronics, and clothing,

Naivas upped its game by providing fresh grocery products at a cheaper price. Beyond groceries, Naivas

now offers baked products, in-store butchery, and cooked Kenyan delicacies. They have also set space

inside the supermarket where customers can dine and socialize.

”The food market is a concept where we give more preferential space to the fresh items that we produce,

directly owned products that is our bakery, our butchery, our fruit and veg, the juice and the like. So that

space we give it at least 25% of the space in our food markets.” Said Mr Willy Kimani , the former

company’s Chief Commercial Officer.

Investing in technology and Targeted Advertising

Naivas invested more than Ksh 180 million to set up an online supermarket where tech-savvy customers

are able to shop from the comfort of their homes and offices. Naivas uses targeted campaigns to focus on

the middle and lower-class Kenyans. Using celebrity endorsements and thematic campaigns like ‘Naivas

Kikapu Kibonge’ and ‘Krisi na Naivas’ keeps Naivas flooding with customers.

Challenges faced by Naivas

Naivas like many businesses in Kenya has not been immune to challenges including

High taxes, Naivas Limited received a hefty corporate tax assessed at Ksh 1.79 billion inclusive of

interest and penalties. Other challenges faced include

Ransomware attacks- Naivas was a victim of ransomware attacks by an online criminal organization.

The hackers stole Naiva's data which caused worry among customers

Succession modalities -a major problem facing Naivas as children want to join the business. Without a

lack of proper governance and honesty, the business will take a nosedive this is what happened to

Naivas's predecessors.

Challenges overcome by Naivas

Naivas survived the Covid pandemic, while major giants such as Nakumatt, Ukwala, and Uchumi were

closing down, the supermarket kept afloat. The supermarket survived after selling a 30 percent minority

stake to different investors, this quick decision helped them raise Ksh 6 billion. We are elated that our

store openings have been greatly enhanced through the support of our stakeholders and investors who

have strengthened and improved corporate governance, increased accountability and professionalism

within the business. Said Willy Kimani, the former chief commercial officer

Future Prospects

After opening its 100th store, Naivas is poised for growth and success in the future. The company is

committed to continue providing quality fresh products at affordable prices. Since the company started as

a grocery store back in 1990, the company plans on long-term relationships with farmers who supply

fresh food products.

Niavas claims to re-engineer the in-store experience by converting old outlets into food markets. The

hotels inside the supermarket are something novel in the Kenyan Retail business, and it is already gaining

traction in major cities, since the food is affordable and of good quality.

Furthermore, Naivas will continue expanding using the asset-light method (they acquire space and set up

branding and operations). IBL Limited, which owns 37.32 percent is set to invest an additional Ksh 9

billion to help in expansion in new buyouts. These buyouts are going to include major highways and

strategic areas in cities. Well-capitalized retailers like Naivas are in a better position to offer customers a

wide selection of products and convenience under one roof.

Additionally, Naivas is enhancing its online presence by recruiting major Kenyan celebrities to advertise

different offers and promotions thereby making Naivas more popular. These thematic-driven campaigns

are created by marketing agencies, e.g. Krisi na Naivas, a campaign that saw increased traffic to their

various stores on Christmas.

To ensure that the customers return, Naivas is using Loyalty cards and they have signed more than 2

million people, this underlines the huge number of customers that have helped it grow into the leading

Supermarket in Kenya. Naivas plans on enlisting more people into the loyalty program. This will place

Naivas in a better position where they can grow their earnings and revenue hence benefiting from

economies of scale.

In conclusion, Naivas opening more than 100 stores in the country, is a testament to their journey from

humble beginnings to the leading food retail industry. As Naivas continues to set new records, it remains a

symbol of resilience, success, and customer satisfaction in Kenya's Business Landscape.