At least 1000 workers will lose jobs after Game Stores ended its operations in Uganda.
The South African- based supermarket with several outlets at Lugogo and in the city center, announced its end of operations on Tuesday.
A copy of the statement seen by the New Vision indicates that Game Stores considers closing its operations in Uganda.
“We have therefore initiated potential store closure consultations with our staff members in the potentially affected stores,” read the letter dated October 4.
Neville Hatfield, the Game Vice President, disclosed that in March 2021, Massmart, the owner of Game, stated that following a review of its portfolio in East and West Africa, it was exploring the idea that store performance might improve under the management of investors and entrepreneurs with a better understanding of local market conditions.
As a result, Massmart, together with the Game management team initiated a process over a 12-month period to investigate and searching for a local investor in Uganda to purchase its store but unfortunately it has not yielded meaningful results.
Hatfield said in the beginning of the process to explore alternative options for the store in Uganda, they have been committed, regardless of the decision taken to honour obligations to their staff members, customers, and business partners.
“Our focus is to ensure a transparent consultation process with our staff members and their representative, after which we will update you about the agreed next steps,” he said.
Hatfield, however, said, it is difficult to anticipate timing of the consultation process but promised to announce a way forward if a decision is reached.
Game Stores joins Shoprite, Nakumat, Uchumi supermarkets that exited Uganda in the recent past.
Meanwhile, Uganda currently has local supermarkets like Capital Shoppers, Quality Supermarket, Mega Standard Supermarket, among others, that can fill the void.