Uchumi supermarket has closed Freedom City branch in Kampala over huge losses.
The acting country director David Mugo says despite the fact that the supermarket is located on a highway, very few people have been buying from them resulting into losses.
“Since 2012, we have been grappling with loses and this can’t go on. The Supermarket is right here along the Kampala-Entebbe highway, very accessible but there are no customers”.
He however says all staff will be retained and allocated to other Uchumi supermarkets in Kampala Mbale and Gulu.
The supermarket opened on 1st June 2012 and has mainly been serving people living along the Entebbe route.
According to the 2012 Uganda Investment Authority report 2012, although many business are started annually, very few make it to their first anniversary, while a study conducted by Makerere University Business School, puts the failure rate of Ugandan businesses at 50%.