Consumer confidence is an indicator for economic trends as the degree of optimism of consumers regarding the state of the economy is directly reflected in their spending and saving behaviour.

But these statistics are unlikely to deter Nakumatt’s expansion drive as plans are underway to open a branch in Nakuru while in Nyeri a new location has been identified where a branch will be located.

In Nairobi, the retailer is looking at two sites on Lang’ata and Kiambu Road. The company has already opened four new outlets within Nairobi’ city centre. The shops are located near City Hall, on Ronald Ngala street, Moi and Haile Selassie Avenues.

The supermarket chain boasts of 15 outlets in Nairobi alone and a total 29 branches spread across Kenya, Uganda and Rwanda. Analysts are raising concerns as to whether the supermarket chain can sustain some of its branches that are located in the low-end market segment which are already dominated by Tusky’s and Ukwala supermarkets. But Mr Shah says Nakumatt’s expansion programme is a little different from the ones done by some of its competitors. “In our case we are not constructing buildings, instead we are renting the space, this reduces our costs significantly,” said Mr Shah.