Massmart, the operators of Game Store in Kampala have opted to close their only outlet at Lugogo Mall after failing to find a buyer.
According to the official statement, in March last year, Massmart decided that it would review the operations of its Game Stores in East and West Africa, noting that during the review, it would explore the option of engaging potential buyers to improve the performance of some of its stores under the management of investors and entrepreneurs with a better understanding of local market conditions.
“Massmart initiated a process over a 12-month period to investigate… the opportunity to sell our East and West African stores to local investors. Unfortunately, this initiative did not deliver a meaningful outcome,” the company said in a statement on Wednesday.
It is reported that Massmart has been posting losses and losing market share to bigger local rivals.
In the latest development, Neville Hatfield, the Vice President of Game Merchandise, said that they are considering closing.
“One possible way forward now is to consider closing our Game store in Uganda and we have therefore initiated potential store closure consultations with our staff members in the potentially affected stores,” he said in a statement.
However, he assured employees that they are finding the best possible alternatives for them.
“Our present focus is to ensure a transparent consultation process with our staff members and their representatives after which we will update you about the agreed next steps.
“It is difficult to anticipate the timing of the consultation process, but please be assured that we will get back to you as soon as we have collective clarity on the way forward,” he said.
Having opened in 2004, Game Stores now joins other retail chains, including Shoprite, Nakumatt, and Uchumi, that have exited the Ugandan market after struggling with the business.