Retailers’ Perspective

The changing retail landscape, are local

players gearing up?

Michael Mugasa, Partner, PwC Kenya

6 April 2017
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Agenda
1. Introduction
2. Home-grown champions making their mark
3. Challenges in the sector

PwC
 Introduction Home-grown champions making their mark Challenges

Mega trends driving retail and consumer expansion in the East Africa region

Macro-economic: Income growth

Urbanisation

Drivers of Demographic changes: Expanding

Retail Expansion in EA aspirational consumers

The “internet of things” – connected

consumers, brand awareness, health
conscious, greater convenience

PwC
 Introduction Home-grown champions making their mark Challenges

Home-grown champions
What are the key differentiators?

Is the
Growth business
Planning for
profitable?
the long term Vision

Purpose
Expanding
footprint
Impact

Competitive
advantage: Consumer Local
Nimbler production
insights

Brand Strategic Modernisation, Supply chain

distinction, footprint in-store optimisation,
value experience distribution
proposition

PwC
 Introduction Home-grown champions making their mark Challenges

“Home-grown
operators are
none the less
Challenges increasingly
claiming their
turf”

Family owned Supply

Dominant Cost of formal High Operational
businesses; chain and
informal retail space distribution efficiencies
professionalisation, supplier
sector costs
governance, “the capacity
missing middle” constraints

PwC
End

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