In the half year ended in December 2017 Uchumi Supermarkets net loss has widened to 63.5 percent, a sharp sales drop.
The retailer made a net loss of Sh547.3 million in the same period the previous year, a performance coming after turnover declined 71.4 percent to Sh526.9 million.
Administrative expenses dropped at 15.5 percent to Sh1 bill.
Uchumi has struggled to raise new capital to fund its operations which have been hit by the closure of branches and stock-outs.
“The management continues to work closely with the board in the implementation of a re-structure strategy aimed at returning the organization to a positive and sustainable position,” the company said in a statement Thursday.
Kuramo Capital a private equity firm has pulled out of the retailer and is now with investors from Asia. Uchumi had approached the same firm to inject Sh3.5billion in the Company.
The management working closely with the implementation board is already beginning to have a positive impact on the business with a significant reduction in operating costs as the retailer rationalizes the branch network and seeks to relocate.
It as well seeks to open stores which are more financially viable whilst appealing to customer base according to the statement.
In December last year, Kenya released Ksh7 million to bail out cash to Uchumi supermarkets to help restock and revive business in the Country.
