Massmart African retail and wholesale group, which owns Game Stores in Uganda has announced its plan to close its solo Kampala Game Store after the failure of finding potential local investors to buy the store.
In March 2021, the South African-based company Massmart announced that following a review of its Game Store portfolio in East and West Africa. The store management developed an idea that the Store Performance might improve under the management of investors and entrepreneurs with a better understanding of local market conditions.
The store management started a process over a 12-month period to investigate a preferred option, the opportunity to sell the Store in Uganda to local investors. It seems the efforts to find potential investors have not yielded fruits.
Neville Hatfield the Vice President of Merchandise, Tuesday, revealed that one possible way is now to consider closing Game Store in Uganda and the management has therefore initiated potential store closure consultations with their staff members in the potentially affected stores.
“From the very beginning of the process to explore alternative options for our store in Uganda we have been firmly committed, regardless of the decision taken, to honor our obligations to our staff members, customers, and business partners, and we would like to assure you that this remains the case,” said Neville
“Our present focus is to ensure a transparent consultation process with our staff members and their representatives after which we will update you about the agreed next steps. It is difficult to anticipate the timing of the consultation process but please be assured that we will revert to you as soon as we have collective clarity on the way forward.” He added.
Game stores are joining other retail stores that closed their operations in Uganda due to various reasons, and these other stores include Uchumi, Nakumatt, Tuskys and recently closed Shoprite.
Massmart is an African retail and wholesale group with widely recognized and differentiated formats, represented in 403 stores in 13 sub-Saharan countries. The company has market shares in the general merchandise, liquor, home improvement, and wholesale food markets.
Massmart, the parent company for Game Stores last year announced it was selling 14 stores across Uganda, Ghana, Nigeria, Kenya, and Tanzania as part of its exit plan from East Africa and West Africa.