The company says its exit is due to having failed to get a local partner or buyer.
Massmart Holdings, the owner of Game Store in Uganda, has announced the company's departure from the Ugandan market.
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In March 2021, Massmart announced that, after a review of its operation in East Africa, it was looking at contracting a local partner to manage the Game Store outlets in Uganda. And, if that failed, getting an investor who would buy it.
This partner or buyer, Massmart said, would be necessary thanks to being equipped “with a better understanding of local market conditions.”
Massmart, together with the Game management, then embarked on finding a partner or buyer. The search was conducted over a 12-month period to find how possible it was to get investors in Uganda who would buy or run the store. However, these efforts seem to have fallen flat as Massmart is set to exit the Ugandan market.
“One possible way forward is now to consider closing our Game store in Uganda and we have therefore initiated potential store closure consultations with our staff members in the potentially affected stores,” says Neville Hatfield, Vice President of Massmart.
Massmart Holdings Limited is a South African firm that owns local brands such as Game, Makro, Builder's Warehouse and CBW. It is the second-largest distributor of consumer goods in Africa, the largest retailer of general merchandise, liquor and home improvement equipment and the wholesaler of basic foods
Game Store in Kampala was opened in 2004, after a total investment of 11 million US Dollars (41 billion Shillings) or 20 billion shillings at the time.
Apart from Shoprite, Game Store follows a number of Kenyan-owned stores that include Tuskys, Nakumatt and Uchumi which closed shop in Uganda between 2017 and 2019.