@CITIZENTV

Uchumi bets on franchising to lift fortunes

5 months ago, 13 June 19:16

By: Citizen Reporter

Loss making retailer Uchumi is set to venture into a franchising deal as it seeks to salvage its operations.

The move is aimed at offering private and mostly small supermarkets the opportunity to trade under its brand name as it seeks to spring back to profitability.

In a notice in the dailies, Uchumi has put out an expression of interest for a partner to take up the Uchumi Langata hyper branch.

“Uchumi is now exploring the piloting of a franchisor-franchisee business mode. Successful franchisee candidates shall be required to demonstrate financial resources in the high hundreds of millions of shillings and technical capability to undertake this venture,” the retailer said.

The idea was first mooted by former chief executive officer Julius Kipng’etich but has failed to materialize even as the retailer sunk further into loss.

The franchise model in which a big brand allows smaller players to use its name in a particular market in return for royalties has been in operation in other sectors such as manufacturing, hospitality and transport.

Despite multiple government bailouts, Uchumi has failed to bounce back further compounded by the fact suppliers have stopped delivering goods owing to poor cash flow.


Read More


Category: topnews news business

Suggested

Now
@CITIZENTV - By: Reuters
Key AstraZeneca lung cancer treatment misses study goal

AstraZeneca (AZN.L) said on Friday its immunotherapy drug Imfinzi did not meet the main goal of improving survival rates for patients with the most advanced form of lung cancer ...

Category: topnews news lifestyle
1 hours ago, 18:46
@CITIZENTV - By: Reuters
As China-U.S. friction rises, their armies hold joint disaster drills

Soldiers from China and the US wrapped up a week of joint disaster relief drills,despite conflict over trade, South China Sea and self-ruled Taiwan. ...

Category: topnews news
1 hours ago, 18:13
@CITIZENTV - By: Reuters
U.S. joins Australian plan to develop new Pacific naval base

The United States will join Pacific ally Australia to build a naval base on Papua New Guinea’s Manus Island, U.S. Vice President Mike Pence said, ...

Category: topnews news
2 hours ago, 17:52
@DailyNation - By: Victor Raballa
Opposition not dead, handshake setting stage for reforms: Orengo

Orengo expresses optimism about referendum, says Raila deserves top seat. ...

Category: topnews news
2 hours ago, 17:41
@CITIZENTV - By: Wendy Abdallah
Four arrested for defrauding Kenyans using Margaret Kenyatta’s name

Police on Friday arrested four suspects accused of defrauding Kenyans millions of shillings through a fictitious loan scheme. ...

Category: topnews news
2 hours ago, 17:20
@DailyNation - By: Francis Mureithi
State House Comptroller visits Moi, discusses his 'comfort'

Moi visits Kabarak to review operations in the office of the retired president. ...

Category: topnews news

@CITIZENTV

Uchumi bets on franchising to lift fortunes

5 months ago, 13 June 19:16

By: Citizen Reporter

Loss making retailer Uchumi is set to venture into a franchising deal as it seeks to salvage its operations.

The move is aimed at offering private and mostly small supermarkets the opportunity to trade under its brand name as it seeks to spring back to profitability.

In a notice in the dailies, Uchumi has put out an expression of interest for a partner to take up the Uchumi Langata hyper branch.

“Uchumi is now exploring the piloting of a franchisor-franchisee business mode. Successful franchisee candidates shall be required to demonstrate financial resources in the high hundreds of millions of shillings and technical capability to undertake this venture,” the retailer said.

The idea was first mooted by former chief executive officer Julius Kipng’etich but has failed to materialize even as the retailer sunk further into loss.

The franchise model in which a big brand allows smaller players to use its name in a particular market in return for royalties has been in operation in other sectors such as manufacturing, hospitality and transport.

Despite multiple government bailouts, Uchumi has failed to bounce back further compounded by the fact suppliers have stopped delivering goods owing to poor cash flow.


Read More

Category: topnews news business

Suggested

Now
@CITIZENTV - By: Reuters
Key AstraZeneca lung cancer treatment misses study goal

AstraZeneca (AZN.L) said on Friday its immunotherapy drug Imfinzi did not meet the main goal of improving survival rates for patients with the most advanced form of lung cancer ...

Category: topnews news lifestyle
1 hours ago, 18:46
@CITIZENTV - By: Reuters
As China-U.S. friction rises, their armies hold joint disaster drills

Soldiers from China and the US wrapped up a week of joint disaster relief drills,despite conflict over trade, South China Sea and self-ruled Taiwan. ...

Category: topnews news
1 hours ago, 18:13
@CITIZENTV - By: Reuters
U.S. joins Australian plan to develop new Pacific naval base

The United States will join Pacific ally Australia to build a naval base on Papua New Guinea’s Manus Island, U.S. Vice President Mike Pence said, ...

Category: topnews news
2 hours ago, 17:52
@DailyNation - By: Victor Raballa
Opposition not dead, handshake setting stage for reforms: Orengo

Orengo expresses optimism about referendum, says Raila deserves top seat. ...

Category: topnews news
2 hours ago, 17:41
@CITIZENTV - By: Wendy Abdallah
Four arrested for defrauding Kenyans using Margaret Kenyatta’s name

Police on Friday arrested four suspects accused of defrauding Kenyans millions of shillings through a fictitious loan scheme. ...

Category: topnews news
2 hours ago, 17:20
@DailyNation - By: Francis Mureithi
State House Comptroller visits Moi, discusses his 'comfort'

Moi visits Kabarak to review operations in the office of the retired president. ...

Category: topnews news
Our App