Due to poor sales, South Africa’s luxury fashion brand Woolworths closed its Thika Road Mall (TRM) store in Nairobi.
Woolworths attributed the depressed volumes to the fact that the shopping complex did not serve its target market, as well as cannibalization from its more recent store at nearby Garden City Mall.
“The truth of the matter is that TRM was always tiered lower than our target market,” Woolworth’s district manager for East and West Africa Caroline Musei said in an interview.
“However, when we opened a bigger store at Garden City, most of our customers shifted to the new outlet leading to a drop in sales. That is why we decided to close our TRM branch.”
Ms. Musei further blamed the subdued business at the TRM on the financial problems facing the mall’s anchor tenant – Nakumatt Supermarkets – saying it had also depressed sales for other tenants due to reduced foot traffic.