Sustaining Growth in a Challenging Economic Environment

In July 2023, Peter Kang'iri, the Chief Executive Officer (CEO) of Quickmart, Kenya's second-largest retail chain, sat in his Nairobi office reviewing the company's first half financial results before the weekly executive committee (EXCO) meeting. The company was in the second year of its five-year plan, following its most profitable year ever in 2022. Quickmart's five-year plan was to increase its revenues by 82% to $541 million by opening 50 new stores. It was targeting to have 105 stores in Kenya by 2026 and had opened three new stores in 2023 which increased its national presence to 58 stores in 16 counties by July 2023. However, Kenya's challenging economic environment was negatively impacting consumer spending, and Quickmart's growth plans were at risk. Furthermore, Kang'iri feared that Quickmart could face financial challenges as it increased its store numbers since other Kenyan retailers had failed after growing to 65 stores. Given these challenges, Kang'iri knew he would need to reconsider how best to meet the company's ambitious growth targets.