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Market watch: Africa photo courtesy L’Oréal Kenya: prestige retailing A slow build New mall developments may give Kenya’s retail market a boost, but prestige distribution in the country will need some time to take hold by Alex Wynne enya’s retail segment, dominated by foresee “any signifcant effect on the overall Westgate forced its third outlet to shut down. Klocal supermarket chains Nakumatt economic performance arising from the recent People are still shopping for necessities, and Uchumi, has not been as buoyant as tragedy,” although market-research frm TNS she said, but they are avoiding malls at peak other markets in Africa in recent years. said in a recent report that the retail sector times and not spending their leisure time in Nevertheless, the government’s Kenya’s had been negatively impacted, as shoppers shopping facilities. Mall security Vision 2030 plan for the economy includes stayed away from malls due to security is a key concern for both shoppers and measures to move the country away from fears. Tourists—one of the biggest drivers of retailers alike. traditional and informal distribution, which Kenya’s economy—are also staying away, accounts for around 90% of retail sales, and according to reports. Mass retailers up their beauty game raise the share of formal retail to 30%. “The recent tragic events have played a Mass retailers like Nakumatt, meanwhile, However, recent events have rocked the huge role in the future projection we had in have been upping the ante, focusing on retail market, in particular, the September mind for our business, as the private sector services and education, with the aim of 2013 terrorist attack on Nairobi’s Westgate and retail market have been affected greatly,” moving towards a department-store type Mall, one of the country’s main shopping comments Nadia Osman, co-founder of model. Last year, the retailer announced centers. Following the attack, the Kenyan perfumery chain The Fragrance Lounge, which that it had signed a distribution agreement Treasury issued a statement saying it did not operates two stores in Nairobi. The events at with Revlon to open dedicated cosmetics 64 September-October 2014 - N°19 - BW Confidential