Store owners hit by second tragedy

The Atul Shah family, which owns the Nakumatt chain of supermarkets, has suffered huge losses twice in four months.

In October, one of the store’s branches was demolished to pave the way for the expansion of Thika Road. And on Wednesday, one of its biggest branches, Nakumatt Downtown, was destroyed in a blaze that lasted hours.

Highest rated

Established in the mid 1980s, the stores employ about 4,000 people countrywide. In 2007, the firm posted a turnover of Sh24 billion compared to Sh8 billion in 2006, making it one of the highest rated supermarkets in the East and Central Africa region.

On Wednesday, as the firm’s iconic Downtown branch on Kimathi Street went up in smoke, one wondered what thoughts might have gone through Mr Shah’s mind and that of Thiagararajan Ramamurthy.

Mr Ramamurthy, the firm’s chief operations officer, has in the last two years become its public face.

During that period, Mr Ramamurthy, or TRM to friends and colleagues at Nakumatt, has presided over one of the most remarkable expansion streaks ever seen in Kenyan business.

The firm has built more branches and today boasts 19 in Kenya alone. It has a megastore in Rwanda, which opened its doors last August.

A first for any chain store in Kenya, the company has also spearheaded 24-hour operations in Nairobi, Kisumu, Mombasa and Eldoret. The Downtown branch which burnt down was the second to start offering 24-hour services.

It had grown to be a popular shopping spot for those who prefer late night or early morning buying. In a statement to newsrooms immediately after the fire, the operations director said that the store had been completely destroyed.

“The fire razed the entire building,” said Mr Ramamurthy. “We are assessing the value of goods destroyed in the fire and working with the relevant authorities to determine the cause of the fire.”

Although all the goods in the store may have been lost, Mr Shah’s family might take comfort in the fact that the supermarket was insured against fire.

Was insured

Officials from the public relations department of Nakumatt told the Nation that the store was covered against such a loss. “The store was fully covered against fire and all the regulatory requirements complied with by the management,” said the officials.

With the Thika Road branch yet to be relocated, the latest incident the company is in a tight spot with a huge number of staff to be redeployed.