Majid Al Futtaim, a Carrefour franchise holder, has reached a deal to take over six shops in Uganda from South African retailer Shoprite, it mentioned on Wednesday.
Shoprite mentioned final month it will shut down operations in Uganda and Madagascar after forex devaluations, decrease commodity costs and excessive inflation hit family incomes and weighed on earnings.
Majid Al Futtaim, which is a United Arab Emirates-based mall developer that holds Carrefour franchise rights in dozens of nations, mentioned it had signed an settlement with Shoprite to take the Ugandan shops by the top of this 12 months. It didn’t disclose the worth of the deal.
Carrefour entered the Ugandan market in 2019 and at the moment operates two shops. Shoprite has been in Uganda since 2000.
During the last a number of years, Uganda’s retail sector has seen a gradual exodus of international companies, principally from South Africa, on the again of slowing financial development, exacerbated by the results of Covid-19.
Majid Al Futtaim’s two Carrefour-branded shops in Uganda compete principally with native retail chains, together with Capital Buyers, which has a number of retailers within the capital Kampala.
It has grown extra quickly in neighbouring Kenya, the place it has turn into among the many high two retailers since beginning operations in 2016, because of the failure of home-grown chains like Nakumatt, which collapsed in 2017.