QN: Kenyas Uchumi Supermarkets said on Monday that profit before tax in the year to June fell 7 percent, blaming competition and supply challenges in Uganda in your view, is Ugandas supermarket space crowded? ANSWER: I think now we have super markets, mini super markets and improved shops that appear to be more organised and supplying quality products that are also mainstay of mainstream super markets. Yet these small and mini super markets are low cost in terms running e.g cost of rent, manpower, electricity etc. Big super markets are not benefiting from economies of scale because they are not manufactures and therefore cant undercut mushrooming mini and small supermarkets through underpricing. Mainstream supermarkets will have to be imaginative to survive. Cheers, Morrison Rwakakamba CEO- Agency for Transformation (Think and do Tank based in Kampala- Uganda) agencyft.org
Posted on: Tue, 09 Sep 2014 08:58:02 +0000
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