- 16th September 2020
- Posted by: damian.shore
- Categories: Tuskys, Retail, SagaRetail News, Retail & Shopping Malls, Kenya
Can Tuskys survive, or is it likely to become just another tombstone in the graveyard of Kenyan grocery retail, alongside the likes of Nakumatt, Choppies, and Shoprite?
This Retailer Research Report provides a detailed analysis of Tuskys’ development, ownership, management, operations, store network, and growth strategies in order to provide a comprehensive review of the retailer’s strategy and performance, the roots of its problems, and its future prospects.
The second-largest player in Kenyan grocery retail (behind Naivas), mounting debts have plunged family-owned Tuskys into crisis during 2020. Amid empty shelves and store closures, it is struggling to avoid the fate of Nakumatt – formerly the dominant player in the local market.
A high-profile effort to revive its fortunes that was launched in August already appears to be running out of steam – landlords have shut more Tuskys’ stores, the electricity supply has been cut to others due to unpaid bills, and a number of debtors have initiated legal proceedings to wind up the retailer.
Attempts by Tuskys’ management to blame its problems on the economic shock of Covid-19 are transparently self-serving – it has merely served as a catalyst for underlying issues, most notably the lack of a clear boundary between ownership and management. Tuskys has long been plagued by in-fighting among the heirs of its deceased founder, with allegations of fraud never far away.
These disputes also represent a major impediment to outside investment, which it now needed more than ever. The chain has also conspicuously failed to executive strategies relating to franchising, partnerships, and store upgrades and has virtually ignored private label. As a result, it is falling behind such rivals as Naivas, Quickmart, and Carrefour in the highly competitive Nairobi marketplace.
If you want a deep dive into Tuskys, you can download the Tuskys Retailer Research Report 2020 by clicking here