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New Report Reveals Why Supermarkets Are Struggling

A new report by Makerere University – based Economic Policy Research Centre (EPRC) says supermarkets in Uganda are struggling to stay in business.

The report, “Supermarkets struggle to stay in business in Uganda dampening the business climate”, explores the ongoing struggles by supermarkets, and looks into the business climate, challenges in doing business as well as the business outlook for the period between July and September 2017.

It says unfavorable business performance largely explained by low demand leading to collapse of some retailers, key among them Nakumatt Supermarket.

The report says the supermarkets like other businesses have become victims of the declining Business Climate Index.

The Business Climate Index, according to the report, declined and remained well below potential by 22.12 percentage points to 70.93 during April – June 2017 from 93.05 in the preceding quarter of January – March 2017.

This according the report suggests that conditions for doing business are in decline and remain well below potential.

The decline in the perception on doing business in Uganda came in the face of the collapse of two large supermarkets, Nakumatt and Tuskys, and persistence of the effects of the army worm attack on Uganda’s agricultural sector, posing a major threat to food security and agricultural trade.


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