Kenya’s Sendy has partnered with Kenya’s Mini Marts to facilitate micro-retail commerce
Through a third-party credit financing scheme and fulfillment operations, the supply-chain technology business is assisting over 5000 Nairobi minimarts in reviving their operations.
Mini Marts in Nairobi’s residential areas will receive credit funding ranging from Ksh 50,000 to Ksh 2 million to help them expand their stock, increase their profits, and provide cheap products to their customers.
According to a Sendy report, small businesses account for 70% of the FMCG market, with the majority of small merchants unable to stock up on a regular basis.
According to the survey, almost 5000 minimarts in Nairobi are unable to keep their shelves adequately stocked.
Sendy Supply’s General Manager Don Okoth said: “We have made this capital accessible to help mini-marts optimize their profitability and reduce losses caused by stock outs, product unavailability and price inconsistency. The impact of minimarts being able to source quality goods at affordable prices with assured delivery is felt by many households.”
Sendy will also use its logistics skills to provide next-day delivery from a real-time order fulfillment system.
“Most mini-mart owners have to deal with the issue of logistics from suppliers which takes their focus away from running their businesses. With our partnership, they can instantly order goods from our Sendy Supply mobile App and get next-day shipment of the purchased stock for free,” added Mr. Okoth.
The deal also offers customers an access to a wider variety of products from different suppliers at competitive pricing from Sendy’s Supply platform, including Bidco Africa, Chandaria Industries Ltd, Alpha Grain Millers, Excel Chemicals Ltd, Highlands Drinks Ltd, KimFay EA Ltd, Mombasa Maize Millers Ltd, Pwani Oil and Premier Food Industries Ltd.
With the expansion of the retail economy, mini-marts’ impact at the bottom of the pyramid has grown significantly. According to market research firm Nielsen, kiosks and groceries accounted for 66.3 percent (Sh185.2 billion) of total FMCG spend in Kenya in the year ending March 2019, up 10.7 percent from the previous year’s same period, explaining the expansion of neighborhood mini-marts.
Mini-marts are small supermarkets in estate neighbourhoods which are not part of a large retail chain and keep moderate stock levels.