(NAIROBI, KENYA) – Naivas Supermarkets is preparing to extend operating hours at some of its outlets as retailers position themselves to capture festive season spending amid growing pressure on household budgets.
The retailer says some stores could operate around the clock during the peak shopping period that the three month Kikwetu campaign will be running.
With a shrinking consumer basket, the retailer said it will be offering discounts of up to 60% on selected products and daily promotions to attract price sensitive customers.
The strategy points to a balancing act facing retailers as they seek to increase sales during one of the busiest trading periods of the year while managing staffing, electricity, security and inventory costs.
Naivas head of operations at Greenspan branch Cyrus Mathenge said the retailer was adjusting its operations to accommodate customers during the high trading season.
“Being a heavy trading period, we are very agile in operations. So, what you will see is that we have tried to accommodate customers during this period, including adjusting some of the operating hours,” he said.
“In some of the locations, actually, we have got 24 hours, and we will be communicating that quite soon.”
Longer opening hours could give shoppers more flexibility, particularly during the Christmas rush, but they also raise questions about whether additional sales will be sufficient to cover the cost of keeping stores open for longer.
“Customers are really looking for value, where someone can save a shilling or two. So, in terms of deals and promotions, it is something that we have focused on, to make sure that we try and save customers’ money,” he said.
The retailer says it will seek to absorb rising operating costs and work with suppliers to keep prices affordable as households prepare for the Christmas season amid recent fuel price increases.
The retailer says it will pursue internal cost savings and negotiate with business partners rather than automatically pass higher costs to consumers, as it rolls out its annual Kikwetu Kila Siku campaign featuring cars, shopping vouchers, electronics, goats and chickens.
Naivas chief executive Andreas von Paleske said the company was focusing on prices as customers grapple with limited disposable income.
“We are very sensitive to the fact that many of our customers do not have a lot of money to spend, and so a lot of the time that we invest in our business goes into thinking not just about what products we sell, but also the great pricing that we can offer our customers,” he said.
The retailer is also using discounts to attract shoppers whose spending is constrained by the cost of living.
The discounts are intended to attract shoppers during the festive season, when supermarkets compete for household spending.
“We understand that consumers are really depressed during this period, so the promotions have really taken care of that, and value. Again, people are very sensitive, so how we interact with them, service levels, we really have to elevate our service levels in the stores,” added Mathenge.