Kampala, Uganda — In 2019, French supermarket giant Carrefour agreed with Shoprite Checkers Uganda Limited to take over its Shoprite franchise in the country. This strategic move has since positioned Carrefour as a leading player in Uganda's retail market, capitalizing on a stable economy and a growing middle class.
According to economist Drake Darlington Ssennoga, Carrefour's entry into the Ugandan market was impeccably timed to coincide with a rising demand for quality retail services.
"Carrefour strategically focused on understanding local consumer needs and preferences, tailoring their offerings accordingly," Ssennoga said.
Ssennoga attributes Carrefour's success to several key factors. The company has heavily invested in building a robust supply chain and has emphasized local sourcing. "This not only reduces costs but also supports local economies, fostering loyalty among Ugandan consumers and ensuring a steady supply of goods. Shoprite, on the other hand, faced challenges in these areas," he explained.
Customer experience is another area where Carrefour excels. The supermarket chain offers a wide range of products, maintains clean and well-organized stores, and provides competitive pricing. This focus on customer satisfaction has significantly contributed to attracting and retaining shoppers.
Furthermore, Carrefour has demonstrated adaptability and innovation in the local market by introducing loyalty programs, online shopping through Glovo, and various payment methods. "This innovative approach stands in contrast to Shoprite's less adaptable business model," noted Ssennoga.
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The economic landscape during Carrefour's entry and expansion was also more favorable compared to the period when Shoprite was operating. This stability has positively influenced business operations and consumer spending power.
Uganda's economy is expected to grow by 7% in the coming financial year, driven by increased oil and gas activities, an uptick in tourism, agro-industrialization, light manufacturing, and private investment growth supported by foreign direct investment and remittances.
"This is expected to trigger demand, putting retailers like Carrefour in the right position and pointing them in the right direction," said Ssennoga. With rising disposable incomes, Ssennoga believes demand for supermarket goods can only take a northward trend.
Committed to providing the widest range of quality products and value for money, Carrefour offers an unrivaled choice of more than 100,000 food and non-food products, ensuring customer needs are met.
Launched in the region in 1995 by Majid Al Futtaim, Carrefour operates in over 30 countries across the Middle East, Africa, and Asia, the brand now operates over 300 Carrefour stores. These stores serve more than 750,000 customers daily and employ over 37,000 colleagues, highlighting Carrefour's significant impact on the retail landscape.
