Uchumi,retail chain plans to shut down under-performing branches in Uganda, as the retailer announced a 7.6 percent growth in its 2014 after-tax earnings helped by a tax credit.
Uchumi recently said that the Uganda closure was due to its poor location and disagreement with landlord over certain improvements on the premises.
Last year Uchumi had to close its branch at Freedom City over rent arrear.
Uchumi’s after-tax profit for the full-year ended June 30 rose to Sh384 million from Sh357 million last year. Total net sales increased one per cent to Sh14.45 billion from Sh14.36 billion in 2013, with gross profit falling 6.8 per cent to Sh453 million from Sh486 million.
Uchumi has been operating six outlets in Uganda and the 110 employees are set to be laid off their jobs.
Other established retailers in Uganda include South Africa’s Shoprite, Nakumatt, Embassy Supermarket, Garden City Shopping and Leisure Centre. Regional Retailer Nakumatt is said to be in talks with Shoprite to acquire its three outlets.
Uchumi is cross-listed on the Uganda Securities Exchange (USE) and on the Rwanda House including Nairobi Securities Exchange.