Deacons in a fashionable 70pc surge in profits

Monday March 28 2016

Deacons CEO Muchiri Wahome with Woolworths South Africa regional trading manager Shaun Koop after they opened the Woolworths store at the Thika Road Mall. Photo/FILE

Deacons CEO Muchiri Wahome with Woolworths South Africa regional trading manager Shaun Koop after they opened the Woolworths store at the Thika Road Mall. Photo/FILE 

Fashion retailer Deacons Kenya Limited has recorded a 73 per cent growth in profit driven by a rise in sales across its regional stores.

The firm’s after tax profit settled at Sh100.5 million in 2015 up from Sh58million last year. The increase is mainly attributed to a 24 per cent rise in sales across its 31 stores in Kenya, Uganda and Rwanda.

“This outstanding performance was achieved despite the high interest rates and the weakening of the regional currencies that affected consumer purchasing power in markets where we operate,” explained Deacons Kenya Chief Executive Officer, Mr Muchiri Wahome.

Its new stores Bossini and Mr Price in Acacia Mall, Kampala, Uganda and in Garden City Mall in Nairobi also posted impressive sales, playing a major role in the company’s overall profit.

TWO RIVERS

“We will be opening four stores in Two Rivers in Nairobi. We are also at an advanced stage to open a Mr Price and a Bossini store at the modern Kigali Heights mall in Rwanda,” Mr Wahome added.

The firm last year completed the sale of 49 per cent share of its Woolworths business in Kenya, with an eye on investing more and focusing on wholly owned brands and franchises.

In its new five year strategic plan ‘2016 to 2020’ Deacons will also focus on diversifying sources of supply and brands taking advantage of new malls being developed to enhance its presence.

Deacons owns and manages; Adidas, Life fitness, Angelo, 4u2, Mr Price, Mr Price Home, Truworths, Identity and Bossini.

The stores offer fashionable clothing and apparel, footwear, and accessories for men, women, and children.

Others include home textiles, kitchenware, and home accessories; products to athletes in various sports, fitness equipment for commercial and consumer needs; and baby products.