American Wal-Mart has opened the very first Game store in Kenya through its South African subsidiary Massmart. It is the second largest retailer market in Africa, trailing South Africa, which means it is very interesting for foreign chains.
Compete with local chains
The Game store opened its doors last week and is located in the new Garden City complex near the capital, Nairobi. The complex also has a shopping center, apartments and office space and should be completed by 2017. In total, it will have cost 250 million dollars (225 million euro), with British private equity firm Actis as its majority shareholder with 60 %.
Game currently has 170 stores in 11 African countries, but will have to compete several local chains in Kenya, like Tuskys, Naivas, Uchumi and Nakumatt. The latter is spread all across East Africa and has 39 stores in Kenya alone. One of those is actually also in the Garden City complex.
Game wants to open 4 stores in Kenya, although analysts feel it will have to open a lot more in order to compete. Wal-Mart had tried to purchase the Kenyan chain Naivas, but the deal fell through because of internal disputes at the Kenyan company.