Carrefour Kenya’s revenues last year grew to 1.219 billion United Arab Emirates Dirham (AED), equivalent to Sh42.9 billion at current exchange rates, making it one of the largest retailers in the country by sales.
Disclosures by Majid Al Futtaim, the Dubai-based operator of the Carrefour franchise in Kenya, show this was a 15 percent growth from the sales of AED 1.054 billion (Sh37.1 billion) made in 2023.
The retailer continues to deepen its footprint in Kenya, targeting a larger share of the market dominated by Naivas Limited, which has 108 stores across the country.
Kenya is the fifth biggest market for Majid Al Futtaim, accounting for three percent of the AED 33.95 billion that the retailer made as revenues last year in the 16 countries where it has a presence.
Carrefour Kenya has 28 outlets in Kenya and is aiming to eat further into the dominance of Naivas and QuickMart, as the three target a share of the growing middle class and a population that is increasingly buying foods and home appliances from supermarkets.
“Revenues grew significantly in key areas across our operating companies, with the diversification of our portfolio offsetting both the impact of economic headwinds faced in some markets and operational challenges in other areas of our businesses,” Ahmed Galal Ismail, the CEO of Majid Al Futtaim said in the disclosures.
Naivas remains the dominant retailer in Kenya in terms of footprint followed by QuickMart, which had 61 outlets as at March this year.
Last year’s Carrefour revenues came in a period when the shilling strengthened against the AED, signalling that the retailer significantly grew sales, helping undo the impact of currency losses. The shilling exchanged at 42.65 units to the AED at the end of last year compared to 35.18 units in 2023.
Carrefour Kenya’s revenues had dropped 4.3 percent to AED1.054 billion in 2023, compared to the AED1.1 billion a year earlier.
The United Arab Emirates is the biggest market for Majid Al Futtaim and accounted for 59 percent (AED 20 billion) of the revenues last year, followed by Saudi Arabia at 8.7 percent, Egypt at 7.1 percent and Qatar at 5.9 percent.
In February this year, Carrefour Kenya opened its 28th outlet in Ongata Rongai, taking the battle to the satellite town which is also home to some of the largest Naivas and QuickMart outlets.
The three retailers are engaged in an expansion spree as they compete for market share, seeking to fill the void left by the collapse of Uchumi Supermarkets, Tuskys, Nakumatt Holdings and Mulleys Supermarkets, all of which fell due to mismanagement and debt.
Carrefour, Naivas and QuickMart have targeted major cities and highways, banking on the spending power of the middle classes in these areas.
Majid Al Futtaim entered Kenya in 2016, seeking to gain a foothold in a country where other foreign retailers, such as Shoprite and Choppies, had previously struggled before exiting the market.
Uganda is the third African country in which Majid Al Futtaim has a presence. Last year, the firm generated revenues of AED 143 million (Sh5 billion) in the neighbouring country.
