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The shutdown took place on the evening of Monday, September 2, with a heavy presence of police and military officers swarming the hypermarket during the busy rush-hour period. At the time, parking at Lugogo mall was scarce, highlighting the popularity of the new shopping destination.
A closer look inside the expansive China Town Lugogo store revealed a variety of Ugandan-made products. This aligns with a government policy and subsequent agreement with the supermarket owners to allocate 40% of shelf space to locally manufactured goods. While this initiative has been welcomed by many shoppers, the emergence of China Town Lugogo has caused concern among Ugandan retailers.
Read: A look at prices of products at China Town Kampala store
They argue that the hypermarket poses a threat to their businesses, echoing longstanding complaints against foreign investment in retail and small-scale enterprises. Local traders claim they are unable to compete because they lack the capital and technical expertise to set up factories, accusing foreign-owned factories of undercutting them by selling directly to consumers at lower prices.
Over the past decade, several retail chains have exited Uganda, citing reasons such as high taxes, exorbitant rental fees, employee dishonesty, and the preference for stocking foreign products that are often more expensive than locally produced items, especially foodstuffs. Experts also note that these chains struggle to compete with local corner shops, known as Duuka, which remain ingrained in the traditional shopping habits of many Ugandans.