Majid Al Futtaim – the leading shopping mall, communities, retail and leisure pioneer across the Middle East, Africa and Asia – has this Wednesday announced it has concluded an agreement with Shoprite Checkers Uganda Limited (Shoprite Uganda).
The terms of the agreement see the transfer of Shoprite’s six Uganda store leases to Majid Al Futtaim by end of 2021.
Majid Al Futtaim currently operates two stores in Uganda, under the banner of Carrefour.
The six stores are located in Acacia Mall, Village Mall, Victoria Mall, Lugogo Mall, Clock Tower, and Arena Mall.
The consideration for the stores was not disclosed by Majid Al Futtaim.
As part of the agreement, the Lugogo Mall and Clock Tower properties will also transfer to Majid Al Futtaim who remain committed to its local supply chain and now, new tenant partners.
Following the implementation of the agreement, Majid Al Futtaim will expand its footprint to eight Carrefour stores.
“We welcome the opportunity to bring our unique Carrefour offering of unbeatable value, range, international standards to more customers across Uganda”, commented Hani Weiss, CEO at Majid Al Futtaim Retail.
South Africa’s retail outlet, Shoprite, recently announced it was exiting Uganda and Madagascar.
The retailer runs supermarkets at Village Mall, Bugolobi, Lugogo Mall, Victoria Mall in Entebbe and Acacia Mall in Kololo.
Shoprite has been reviewing its long-term options across Africa over the past year as currency devaluations, lower commodity prices and high inflation have hit household incomes and weighed on earnings.
ChimpReports understands Shoprite has been grappling with intense local retail supermarkets such as Quality Supermarkets, Capital Shoppers, Mega Standard Supermarkets and recently Carrefour.
Hani Weiss today said Majid Al Futtaim is fully committed to creating great moments for the communities they serve for the long-term.
“This agreement represents our continued investment in East Africa. We look forward to strengthening our offering in the region and supporting local talent through employment and career development opportunities,” he said.
Majid Al Futtaim launched its first Carrefour store in Uganda in December 2019 in Kampala’s Oasis Mall, and in March 2021 opened its second store in Naalya.
It currently provides 20,000 products across its stores, of which 98% are locally sourced.
Customers are also able to order products online through partnerships.
Hani Weiss said both parties will work closely together to ensure a smooth transition of the stores and its operations.