Carrefour maintains steady growth supported by a growing middle-class

In 2019, Carrefour, the French supermarket giant, reached an agreement with Shoprite Checkers Uganda Limited to take over its Shoprite franchise in Uganda.

This strategic move has established Carrefour as a leading player in the Ugandan retail market, benefiting from a stable economy and a growing middle class.

In a statement, Economist Drake Darlington Ssennoga noted that Carrefour’s market entry was perfectly timed to align with the increasing demand for quality retail services in Uganda.

He highlighted Carrefour’s strategic approach to understanding local consumer needs and preferences, allowing the supermarket to tailor its offerings effectively.

Ssennoga attributes Carrefour’s success to several critical factors, including significant investment in a robust supply chain and a strong emphasis on local sourcing. “This strategy not only reduces costs but also supports local economies, fostering loyalty among Ugandan consumers and ensuring a steady supply of goods. In contrast, Shoprite faced challenges in these areas,” he explained.

Carrefour excels in customer experience by offering a wide range of products, maintaining clean and well-organized stores, and providing competitive pricing. This focus on customer satisfaction has been pivotal in attracting and retaining shoppers.

Moreover, Carrefour has shown adaptability and innovation in the Ugandan market by introducing loyalty programs, online shopping through Glovo, and various payment methods. Ssennoga remarked that this innovative approach contrasts with Shoprite’s less adaptable business model.

The economic environment during Carrefour’s entry and expansion was more favorable compared to the period when Shoprite was operating. This stability has positively impacted business operations and consumer spending power.

Uganda’s economy is projected to grow by 7% in the coming financial year, driven by increased activities in the oil and gas sector, a rise in tourism, agro-industrialization, light manufacturing, and private investment growth supported by foreign direct investment and remittances. Ssennoga believes that this economic growth will increase demand for supermarket goods, positioning retailers like Carrefour favorably.

Carrefour remains committed to offering the widest range of quality products and value for money, providing over 100,000 food and non-food products to meet customer needs.

Launched in 1995 by Majid Al Futtaim, Carrefour operates in over 30 countries across the Middle East, Africa, and Asia, with more than 300 stores. These stores serve over 750,000 customers daily and employ over 37,000 people, underscoring Carrefour’s significant impact on the retail landscape.