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Uchumi taking off
Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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Gatheuzi wrote:VituVingiSana wrote:Does the Company Act allow for the payment of a Dividend as long as the Revenue Reserves are negative? Nope, for capital preservation, a company can't pay dividends until it clears the negative revenue reserves. @Gatheuzi i am afraid that you are telling a serious lie here!! The company act allows companies with PROFITS in a particular year to pay dividends in that year whether or not there are accumulated losses on the balance sheet!! Just because some companies wait until they clear these losses to pay a dividend does not make it illegal to pay one before! Mark 12:29
Deuteronomy 4:16
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Rank: Veteran Joined: 11/11/2006 Posts: 972 Location: Home
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Uchumi shareholders passed a resolution at the AGM in which it embraced its intention of a rights issue and cross listing. http://af.reuters.com/article/i...ws/idAFJOE8A100Q20121102
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Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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 The Board of Directors have proposed a rights issue and cross listing subject to shareholders and regulatory approval. The AGM should be on 11 December 2012 at the usual place, KICC. Pesa Nane plans to be shilingi when he grows up.
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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Unexpected/surprising but well timed #Rights issue. The moneyed foreigners moving this expensive counter will scoop the rights
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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Among Uchumi's problems are 1. Lack of innovation-instead of going on an expensive expansion they should come up with innovative ways to attract that foot traffic they're chasing 2. Target market-currently Uchumi's target market is the middle to upper income segment, the segment is small, difficult to find suitable retail sites & expensive to operate in (rent etc) plus Nakumatt is dominant in the segment.
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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the deal wrote:Among Uchumi's problems are 1. Lack of innovation-instead of going on an expensive expansion they should come up with innovative ways to attract that foot traffic they're chasing 2. Target market-currently Uchumi's target market is the middle to upper income segment, the segment is small, difficult to find suitable retail sites & expensive to operate in (rent etc) plus Nakumatt is dominant in the segment. I disagree partly with you, reason being that its Uchumi that leads the way in innovation when it comes to product intro, its uchumi that started baking bread, cakes and kathalika in their supermarkets, others just followed, its uchumi that still sells the very fresh veges others which cannot be found in other supermarkets and in this way, they have managed to keep their trusted customers who can only buy uchumi bread or terere from uchumi. On positioning, haven't Tuskys, Ukwala and Naivas crowded the low end market? Why should Nakumatt be left to dominate the high end market alone? "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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murchr wrote:the deal wrote:Among Uchumi's problems are 1. Lack of innovation-instead of going on an expensive expansion they should come up with innovative ways to attract/reach that foot traffic they're chasing 2. Target market-currently Uchumi's target market is the middle to upper income segment, the segment is small, difficult to find suitable retail sites & expensive to operate in (rent etc) plus Nakumatt is dominant in the segment. I disagree partly with you, reason being that its Uchumi that leads the way in innovation when it comes to product intro, its uchumi that started baking bread, cakes and kathalika in their supermarkets, others just followed, its uchumi that still sells the very fresh veges others which cannot be found in other supermarkets and in this way, they have managed to keep their trusted customers who can only buy uchumi bread or terere from uchumi. On positioning, haven't Tuskys, Ukwala and Naivas crowded the low end market? Why should Nakumatt be left to dominate the high end market alone? You missed my point...in the retail space innovation is not only limited to intro of new products...I'm talking about 1. Innovation along the distribution channel...instead of spending KES50-100mn on opening one branch why don't they open 4 Mini Uchumi's? It will help them expand their reach even in places where they cant at the moment i.e rural areas...neighborhoods where Kiosks flourish....etc. 2. Technology-look at the Nakumatt-Yu deal...where they're giving free bonus airtime..free SIM Cards...etc...I'm sure alot of people will shop at Nakumatt just to get the bonus airtime's...
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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@deal, how long is that sustainable for YU, how many free simcards and and bonus airtime will they give inorder for people to shop at Nakumatt? Secondly, the target marget for Nakumatt is the higher middle class, does this segment really care about getting free simcards or bonus airtime? If u ask me, those who are super excited at getting free sim cards and the bonus airtime are of the low end market who might find it a task to even set foot in Nakumatt because of 1. Location, 2. The feeling that stuff is expensive there. If anything, its Uchumi that has really reaped from using tech remember they were the first to sell airtime and introduce payment of bills on their tills. Its Uchumi that has the highest transactions of MPESA, its in Uchumi where u can get a bus ticket to Bungoma. That is why they survived. And I believe they are setting up in the rural areas. Even in UG "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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murchr wrote:@deal, how long is that sustainable for YU, how many free simcards and and bonus airtime will they give inorder for people to shop at Nakumatt? Secondly, the target marget for Nakumatt is the higher middle class, does this segment really care about getting free simcards or bonus airtime? If u ask me, those who are super excited at getting free sim cards and the bonus airtime are of the low end market who might find it a task to even set foot in Nakumatt because of 1. Location, 2. The feeling that stuff is expensive there.
If anything, its Uchumi that has really reaped from using tech remember they were the first to sell airtime and introduce payment of bills on their tills. Its Uchumi that has the highest transactions of MPESA, its in Uchumi where u can get a bus ticket to Bungoma. That is why they survived. And I believe they are setting up in the rural areas. Even in UG Goosh you don't understand Uchumi, 75% of Uchumi's branches are in Nairobi, 50% are in the upmarket residential areas i.e sarit, langata road, westlands etc...Nakumatt can be found Downtown Nairobi i.e Ronald Ngala Branch...who shops there? common people, Remember one of their most grossing branches was Nakumatt Downtown unfortunately it was razed down...it was 24 hours who was shopping there? Common folks...If you critically look at it Nakumatt's model is to operate at both the high end and low end of the market...its more like the Shoprite Model! More innovative ways from Nakumatt.... " Kumar added that other than the local market, the Nakumatt looking at the Diaspora, where users abroad can make purchases for their family and friends back in Kenya and the products would be delivered to them. The retailer recently partnered with Mastercard and plans to re-issue the Nakumatt smart cards with a multi-currency MasterCard prepaid loyalty card" http://www.standardmedia...lls-out-online-shopping
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Uchumi taking off
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