The departure of South African retail shopping centre, The Builders Warehouse, after only two years is a blow to customers who had found a convenient one-stop shop for their DIY and other building projects. But apparently the number of customers was just not enough to sustain the operations of the megastore.
According to the company, persistent financial losses precipitated the closure of its store at Nairobi’s upmarket Waterfront Karen mall.
“As a result, the business has had to consider closing Builders Warehouse Karen Waterfront in Nairobi, Kenya,” a notice from the company read in part.
During its stay in Kenya, the Warehouse stocked building materials and home improvement items for floors, decor, sanitary ware, kitchens, lighting, electrical and other appliances.
However, the plan to be at the centre of construction decision-making in the country seems not to have gone according to plan leading to the exit.
The recent happenings make Builders Warehouse the latest South African firm to have exited Kenya during these tough economic times.
They include Massmart which exited Kenya late last year, just a few months after Shoprite closed shop barely two years after launching local operations.
Analysts believe the store’s unlikely location far from the city’s CBD could have contributed the its financial woes due to limited customer footprint. – By Benson Mbare
