Visit any major Kenyan town, and the odds are very high that you’ll stumble into a Quickmart supermarket. It is one of the few supermarket brands in Kenya that offer 24-hour shopping convenience.
The business was founded by the late John Kinuthia (J.K.) and his wife, Zipporah Wanjiku.
In a recent video shared on Quickmart’s TikTok page, Zipporah explained how the business grew from a small kiosk in Nakuru to one of the largest supermarket chains in the region, with more than 72 branches across the country.
Small beginnings
Ziporrah, who was born in Nakuru County, tied the matrimonial knot with J.K in 1976, and the couple swiftly ventured into business.
Their first venture was farming. They kept dairy cows and tried several other agricultural activities.
However, after some time, they decided that the farming money was not flowing in quickly enough and opted to cast their nets in the hospitality sector.
The couple opened a bar, a butchery, and lodging facilities. They operated these businesses for several years, but Zipporah eventually felt that it was time to try something different.
It was then that she approached her husband and told him about her dream to start a supermarket business.
A typical African man, Kinuthia rejected his wife’s idea at first but later bowed to her nudges.
Small kiosk
In 2006, John and Zipporah established Quickmart as a family-owned business. The company began as a small kiosk managed by the couple while their children were still in school.
“We started slowly. The business was just a kiosk, and it was only my husband and I running it because our children were still in school,” Zipporah explained.
Within a short time, the business had expanded to four stores, meeting the growing demands of Nakuru’s consumers.
After the couple’s firstborn son completed his KCSE examinations, he studied accounting and joined the family business.
“He was very hardworking and industrious. He saw how the business was thriving in Nakuru and approached his father, requesting permission to expand the business to Nairobi,” said Zipporah.
Sadly, John Kinuthia died in 2017. After his death, Zipporah and her children took control of the company, by which point Quickmart’s annual revenue had reached KSh1 billion.
In 2019, the business experienced a major turning point when Adenia Partners, a Mauritius-based equity firm, invested in it.
The investment followed Quickmart’s acquisition of Tumaini Self Service. The two supermarket businesses had combined and were now operating under the Quickmart brand.
Today, Quickmart has at least 72 branches across Kenya, with tentacles in 16 counties.
Managing costs
According to Quickmart Group CEO Peter Kang’iri, retail businesses such as supermarkets have very little profit margins. “We therefore need to be very focused in how we manage costs,” he said.
According to Kang’iri, staff salaries in Quickmart account for about 6% of sales. Rent, which is usually a fixed expense, takes up approximately 2.5% to 3.5%. Together, the two represent close to 10% of sales.
He further explained that part of his job is to ensure that Quickmart’s total operating expenses remain between 14% and 15% of sales. This means that other expenses should be limited to approximately 5%.
“These are areas which you need to monitor every month as the CEO of the business if you want to work within the benchmark of the retail sector,” he said.
According to Kang’iri, Quickmart generally converts its stock into cash within 28 to 30 days.
He also said that running a supermarket business requires one to be very careful when it comes to optimizing the working capital.
This involves carefully balancing the supermarket’s supplier position, bank position, and inventory position.