Home East Africa Shoprite retrenches workers from Kenyan operations

Shoprite retrenches workers from Kenyan operations

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·        Shoprite retrenched 115 workers  from its Kenyan operations

·        Retrenchment will take effect from 31st August 2020

·        In March, Shoprite had closed Karen Branch, Nairobi axing  104 workers

Barely after days announcing its decision to go for planned divestment in Nigeria, as reported by www.trendsnafrica.com, had Shoprite retrenched 115 workers in its Kenyan operations. Accordingly, it has informed the workers’ union that it would  carry out the retrenchment effective 31st August 2020.

The decision has been taken after the closure of the City Mall branch at Mombasa. It is the second branch to be closed in Kenya within a period of five months. Lack of customer patronage is said to be the reason behind the closure of the mall, according to the company sources.

In March, this year, Shoprite had closed Karen Branch, Nairobi. Some 104 workers lost their employment. Shoprite was very excited about its expansion plans in Africa, particularly across the East African countries. It is also reported that the company’s future plans went asunder due to tough competition from well organized retail groups like Carrefour and Naivas. There were instances of malls pulling the shutters due to poor footfalls and bottom lines.

In the meantime, Shoprite is caught up in a legal tangle from the Muguku family, which owns the property of the Waterfront Mall, from where it was operating. The family is seeking Sh 520 million in lost rent after the retail chain cut short its tenancy of the mall

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