South African retail giant Massmart, parent company of Game Stores has said it has decided to fold business in Uganda after failure to find local investors to buy it.
The South African company last year announced plans to sell their Kampala stores in order to recoup the money before exiting the East African country.
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However, according to the latest statement, the company initiated a process over a 12 month period to investigate as a preferred option, the opportunity to sell their store in Uganda to local investors but has not yielded any fruits.
"One possible way forward now is to consider closing our Game store in Uganda and we have therefore initiated potential store closure consultations with our staff members in the potentially affected stores," Neville Hatfield, the Vice President of Game merchandise.
However, the company vice president has assured employees that they are finding the best possible alternatives for them.
"Our present focus is to ensure a transparent consultation process with our staff members and their representatives after which we will update you about the agreed next steps. It is difficult to anticipate timing of the consultation process but please be assured that we will revert to you as soon as we have collective clarity on the way forward."
Background
Massmart, the parent company for Game Stores last year announced it was selling 14 stores across Uganda, Ghana, Nigeria, Kenya and Tanzania as part of its exit plan from East Africa and West Africa.
This would see Africa's third-largest distributor of consumer goods and one of the biggest retailers of general merchandise, liquor, home improvement equipment and supplies and wholesaler of basic foods concentrate on its operations in the mother country, South Africa.
Opened in 2004, Game previously operated in 12 African countries including: South Africa, Nigeria, Zambia, Ghana, Malawi, Mauritius, Mozambique, Namibia, Botswana, Uganda, Kenya and Tanzania.
Game now joins other retail chains including Shoprite, Nakumatt, Uchumi and Tuskys that have in the past seven years exited the Ugandan market after struggling with business.
