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Tag: Carrefour

  • Carrefour owner secures accreditation to train retail personnel

    Carrefour owner secures accreditation to train retail personnel

    Majid Al Futtaim, which owns Carrefour Kenya has secured certification for its Retail Business School (RBS) from the National Industrial Training Authority (NITA).

    The firm will now offer nationally recognised vocational training in specialized tracks, including Meat Technology, Retail Food Management, Bakery and Pastry Technology, and Food Service Operations.

    “By becoming the first retailer to secure this national accreditation, we are elevating the capabilities of our workforce of over 3,000 colleagues and more specifically, cultivating the next generation of retail leaders. Providing our team with the standardized, world-class skills necessary to thrive in a modern economy will enable them to lead the future of retail while aligning with Kenya’s vision to build a highly skilled, globally competitive workforce able to fuel long-term economic resilience,” said Christophe Orcet, Majid Al Futtaim Retail Regional Director for East Africa.

    According to the retailer, the accreditation ensures that the school’s curricula meet the highest industry standards in Kenya, reinforcing it’s role as a driver of professional development and operational excellence within the retail landscape.

    “This accreditation demonstrates strong alignment between private sector investment and national vocational training standards. These Industry-led initiatives play an important role in addressing skills gaps, supporting youth employment, and strengthening the competitiveness of Kenya’s workforce,” added Theresa Wasike, Acting Director General, NITA.

    Last year alone, the school delivered over 44,700 hours of targeted training in Kenya, resulting in 500 certifications and 108 internal promotions.

    The firm backs the certification to further offer employees standardized, nationally accredited qualifications that facilitate long-term career progression and professional mobility.

    Majid Al Futtaim also runs an 18-month Retail Graduate Programme in partnership with local universities, providing fresh graduates with practical training and experience to support their integration into the workforce.

  • Carrefour to pay Ksh 414,250 for abusing its buyer power

    Carrefour to pay Ksh 414,250 for abusing its buyer power

    Majid Al Futtaim Hypermarkets Limited which owns Carrefour has been directed by Nairobi High Court to pay a total of Ksh 414,250 for abusing its buyer power.

    The court upheld the decision by the Competition Authority of Kenya (CAK) which had imposed a fine of Ksh 124,768 on the retailer for abusing its buyer power as well as Ksh 289,482 in deducted rebates on Orchards Limited which is now defunct for contract to supply probiotic yoghurt between January 2015 and December 2018 under the brand name Cool Fresh.

    According to filings by Orchards Limited, Carrefour delisted its goods without notice and demanded various rebates including a Ksh 50,000 listing fee, 10pc on every second delivery and 1.25pc on all annual sales.

    The retailer also refused to accept delivery of items ordered without justifiable reasons like inferior quality prompting the supplier to lodge a complaint with CAK.

    “Commercially oppressive contracts ultimately force suppliers, most of who are SMEs, to exit the market due to unfair business practices, thereby denying thousands of Kenyans their livelihoods and leaving consumers with a limited choice of goods and services,” said Adano Wario, CAK Acting Director-General.

    Following investigations by CAK, the retailer was directed to pay the fines but having dissatisfied with the CAK’s first ruling on Abuse of Buyer Power, Carrefour appealed the decision with the Competition Tribunal which upheld the fines in April 2021.

    Carrefour then moved to the high court in April 2021 to appeal the tribunal’s ruling even after the tribunal set aside a Ksh 130,856 it was directed to pay Orchards for unilateral termination of supply agreement for 2019.

    “From my reading of the provisions, this court is led to conclude that the conduct by the Appellant amounted to abuse of buyer power. The court therefore finds that the tribunal was correct in declining to set aside the authority’s decision on the Appellant’s abuse of buyer power,” said Lady Justice Anne Ong’injo in her ruling on Thursday.

    CAK Chairman Shaka Kariuki  said the outcome of the second and final appeal is an acknowledgement of the regulator’s critical role in the Kenyan economy including facilitating a harmonious co-existence between buyers and suppliers in various sectors.

    “Our message to businesses is that they should play by the rules, irrespective of status. By ensuring that our markets work efficiently, and within a level playing field, the country shall attract more investments and grant consumers a wider variety of goods and services at competitive prices,” added Kariuki.

    The retailer however found reprieve as the court rejected CAK’s orders to amend all contracts Carrefour had with its more than 700 suppliers on the basis that there was no case lodged before it.

    “Following the High Court of Kenya’s ruling yesterday that upheld Majid Al Futtaim right to fair administration and overturned the earlier decision ordering Majid Al Futtaim to amend its supplier agreements, we thank the High Court and consider that this essentially upholds the validity of Majid Al Futtaim’s existing suppliers’ agreements,” said Majid Al Futtaim.

  • Carrefour opens new store in Nairobi at GTC Mall

    Carrefour opens new store in Nairobi at GTC Mall

    Carrefour in Kenya has announced the opening of its 23rdstore at GTC Mall in Westlands, Nairobi.

    The store, which features Carrefour’s self-checkout service, a Food to Go section and 24-hour operations, offers added convenience and accessibility to customers in the area.

    The store, spanning over 595 square metres of retail space, provides an extensive product range varying from groceries, fruits and vegetables and everyday home essentials.

    The Food to Go section at the store also allows customers to indulge in freshly prepared delicacies from the Carrefour Deli while shopping.

    Christophe Orcet, Regional Director – East Africa, Majid Al Futtaim Retail, commented: “We are delighted to introduce our newest store at GTC Mall, enabling us to meet the diverse needs and preferences of our customers. With the self-checkout service, Food to Go concept and 24-hour operations, our intention is to offer convenient solutions that will enhance the shopping experience. The opening is also a testament to our long-term commitment to Kenya and our dedication to contributing to the country’s economic development.”

    Carrefour’s presence in Kenya not only creates job opportunities for local residents but also fosters partnerships with local suppliers, supporting the growth of the local economy.

    Currently, the retailer employs over 2,200 people and sources 99% of its products locally from more than 700 homegrown manufacturers, SMEs and farmers.

    The new store is expected to provide an additional 50 job opportunities and prompt an increase in the number of orders from suppliers in the product categories stocked at the store.

    Orcet added: “We are proud to collaborate with local suppliers and farmers to bring fresh, high-quality products to our customers. By supporting local businesses, we aim to contribute to the growth and prosperity of the communities we serve.”

    This will be the fourth store offering Carrefour’s self-checkout service, following the model set by Westgate Shopping Mall, Village Market, and the Hub stores. Additionally, Carrefour GTC Mall will be open 24 hours a day, similar to Diani and Promenade Mall in Mombasa and Mega in Nairobi.

    Carrefour now operates 18 stores in Nairobi, 3 in Mombasa and 2 in Kisumu.

     

     

  • Competition watchdog fines Carrefour Ksh 1.1B

    Competition watchdog fines Carrefour Ksh 1.1B

    Competition Authority of Kenya (CAK) has fined Majid Al Futtaim Hypermarkets Limited, the owner of Carrefour Ksh 1.1 billion for abusing buyer power involving two suppliers.

    The authority says the retailer had been found to have abused its superior bargaining position over Pwani Oil Products Limited and Woodlands Company Limited.

    The retailer has also been ordered to refund Ksh 16.7 million in irregular rebates and expunge all clauses in its contracts that facilitate abuse of buyer power.

    “Our role as a regulator is to promote healthy competition in our markets with overall objective of creating a conducive business environment for attracting investment into the national economy and to the benefit of consumers. The penalty the Authority has issued serves a stern reminder and deterrent to businesses not to engage in any conduct that infringes the Competition Act. Effective competition benefits us all,” said Shaka Kariuki, CAK Chairman.

    In the case of Woodlands Company Limited, Carrefour was found to have abused buyer power by unfairly reducing its returns and profitability by deducting various rebates and other feed from invoices for products supplied including fixed rebates of 11.5pc in 2021 and 12pc last year.

    Additionally, Carrefour also required the Kitui County-based natural bee honey processor to post its employees on its premises including conducting all-night stocking.

    In the case of Woodlands Company, the giant retailer was fine Ksh 554.2 million and ordered to refund rebates deducted from the honey processor in 2021 and 2022 amounting to Ksh 834,180, and a further Ksh 100,000 paid as marketing support for store opening during the period.

    The retailer also landed in trouble with the competition watchdog for forcefully deducting various rebates and other fees from Pwani Oil invoices and further charged the fast moving consumer goods manufacturer listing and marketing fees, declined to negotiate the supply of contract and threatened to delist it if it failed to accept the terms.

    In this case, CAK penalized Carrefour Ksh 554.2 million and ordered to refund rebate deductions to Pwani Oil amounting to Ksh 15.9 million for 2022 and 2023 invoices.

    The retailer has also been ordered to refund Ksh 400,000 Pwani Oil paid for marketing support for store opening during the period in question.

    “At the core of the Authority’s mandate execution is promotion of inclusive economic development. Abuse of buyer power defeats this aspiration by crippling suppliers, who are mostly SMEs and whose contribution to our economy cannot be overstated. While appearing to enable an offender to offer lower prices to consumers, this apparent benefit is short-term, including, forced exits, especially by SMEs in the manufacturing sector,” added Dr Adano Wario, CAK Acting Director General.

    The supermarket chain is now required to amend all its supplier contracts and expunge clauses that facilitate abuse of buyer power, including but not limited to application of listing, fees, collection of rebates and unilateral delisting of suppliers.