“Is it the economy or Nakumatt mbra (Mbarara) branch is about to close?” celebrated radio and TV personality, Dave Kazoora asked recently on social media.
Unfortunately, it is not only Nakumatt Mbarara branch with empty shelves but actually all the retail outlets’ branches in Uganda.
Buzz has been making rounds that the retail outlet, which entered into Uganda’s market seven years ago, was selling its last stock then quit.
However, speaking about their situation, Nakumatt says the current economic situation in the country isn’t favourable for the company.
Through a statement issued Thursday, the retail outlet says that like any other business operating on the Ugandan market, Nakumatt Holdings is facing a number of unforeseen business challenges.
“These challenges range from a depressed economy, higher operating costs and extraneous factors including enhanced risk management due to prevailing security threats,” reads the statement in part.
They further state that at the moment they are restructuring, concentrating more on the products that are mostly bought by their clients.
“This will allow us to hold optimum stocks based on daily shop floor off take to streamline supplier payment systems by ordering stocks based on actual consumption trends while reducing on shrinkage.
“We are conscious that such financial restructuring remains a key imperative, thus our focus on long-term solutions, which are aligned to the overall business strategy. With the ongoing financial re-engineering engagements focused on accessing significant capital injection, we are confident that overall debt will further reduce once the process is concluded in the coming day.”
The management of the retail outlet also assured its clients that the process will allow them to regain their footing with full supplier settlements and ‘sustainably continue the aggressive expansion plan we have set in our 5 year business plan’.
Meanwhile, the Nakumatt economic woes come a few days after Bank of Uganda took over the management of Crane Bank, saying the move was in the interest of safeguarding depositor’s money.
It also comes a year after one of the biggest supermarket chain in the country, Uchumi, closed shop.