Brisk business as traders cash in on Xmas shopping

By Lillian Kiarie

The Christmas spirit is in the air, and with it, the festive shopping season has arrived.

Retailers are registering brisk business – and running out of stock rapidly – as crowds mob shopping centres to take advantage of year-end sales, with most supermarkets forced to hire more staff to deal with the increased traffic. 

Retail chain outlets The Standard spoke to reported higher growth in sales this year as compared to last year. This has boosted hopes that Kenyans’ purchasing power remains resilient, despite a rise in the cost of living triggered by the September introduction of VAT on a variety of consumer goods.

And as is the norm, the festive season is playing a key role in encouraging consumer spending.

Nakumatt Holdings Managing Director Atul Shah said food and lifestyle products, such as electronic goods, are in high demand.

“This is due to the traditional savings cycle practised by Kenyans, where most save for the better part of the year to upgrade their refrigerator or buy a new LCD TV at around this time,” he explained.

To cash in on the shopping frenzy, leading retail outlets are running countless promotions.

Nakumatt, evidently ahead of the pack judging by from the level of human traffic, is projecting a more than 10 per cent sales growth this season compared to last year.  Shah said the average customer traffic is also expected to more than double with an average daily traffic of 300,000 customers generating at least 175,000 transactions across Nakumatt’s branch network.

“Nakumatt brands such as gift vouchers, Nakumatt Blue Label and Nakumatt Select products have seen a high market uptake from consumers,” Mr Shah said.

He noted that gift vouchers have enjoyed a particular upsurge this year due to more corporate organisations incorporating them in employee reward hampers.

Shoppers, Shah disclosed, have also thronged Tuskys supermarkets across the country.

The retail chain, which has been expanding its presence in the counties, has gone big on Christmas incentives and back-to-school promotions on essentials such as toothpaste, shoe polish and tissue paper. 

Consumer trend

“The consumer trend in Kenya sees many shop a few days before Christmas, mainly due to the habit of employers paying their staff just before the holiday. At this time of the year, TVs, fridges and microwaves are popular,” said Mr Fredrick Mwangi, the Tuskys Ronald Ngala branch manager. The situation is no different in Naivas and Uchumi.

However, Ukwala Supermarkets said it has experienced a drop in sales this year due to what its managers said was increased competition.

The branch manager of the Tom Mboya Street outlet, who only identified himself as Mr Shah, said the opening of large retail shopping malls was eating into the profits that the supermarket has been making.

“More retailers offering the same goods and terms are flooding the market, are shaking up our business this year,” he said.

He added that the supermarket has reduced the prices on fast-moving goods to encourage more customers to make purchases.

There has also been an increase in the number of television decoders sold as a number of consumers seek to enjoy the break before the start of a hectic year.

The holidays seem to offer the best excuse to splurge on pay-TV services, and it also does noharm to prepare for the impending migration to digital broadcasting.

Year-end discounts in various lifestyle stores have also sparked increased spending.

 For instance, Furniture Palace is offering up to 40 per cent discounts on beds and seats, while electronics store Armco is giving five per cent off all purchases.

Open-air markets, such as Muthurwa and Gikomba in Nairobi, have not been left out, despite the rains that have made navigating through the stalls a muddy affair.

Most people coming in now are purchasing non-perishables such as peas and beans in bulk.

The number of people streaming in to purchase second-hand clothes has also increased.

“I am especially cashing in on kids’ clothing,” said Mr Shem Otiende, a trader at Muthurwa.

Ms Grace Muthondu, who runs a stall at the World Business Centre in Nairobi’s CBD, said she has sold more women’s clothes this season than ever before.

The exchange of gifts is central to Christmas and the holidays, and the season is thus a “holiday shopping season”.

This comprises a peak time for the retail sector at the start of the holiday season (Christmas shopping) and a period of sales at the end of the season, generally referred to as the “January sales”.