Nictus Holdings is investing more than N$100 million in the relocation and redevelopment of six coastal stores as the company positions itself to benefit from economic activity linked to Namibia’s emerging oil sector, Managing Director Phillipus Tromp says.
Tromp said the project represents one of the group’s largest combined developments and is aimed at strengthening its footprint along the coast.
“It is one of the largest developments we have undertaken as a group, with total investment exceeding N$100 million. It remains a strategic growth area, particularly with oil-related developments on the coast,” Tromp told The Brief.
He said the company is not opening new stores but upgrading and relocating existing operations as part of its coastal expansion strategy.
According to Tromp, construction activity along the coast has intensified due to oil and gas developments, with contractors increasingly concentrating operations in coastal towns.
“Construction activity has shifted toward the coast, where most contractors are now working,” he said.
The expansion by the Namibia Securities Exchange listed company, follows the group’s entry into the hardware sector, which Tromp said was driven by internal synergies across its businesses.
“The West Bay store provided the first opportunity to enter the hardware segment, followed by Rehoboth. These investments allow us to utilise synergies within the group,” he said.
Beyond Namibia, Tromp said Nictus is preparing to enter the Botswana market through its insurance business following demand from customers operating in both countries.
“The decision was driven by customers operating in both Namibia and Botswana who requested our presence there. We are starting with insurance and will assess further expansion based on market conditions,” he said.
Tromp said the group intends to first stabilise its Botswana insurance operations before expanding other subsidiaries into the market.
On domestic trading conditions, he said higher inflation and interest rates continue to place pressure on consumer spending, particularly in discretionary retail categories.
“Higher interest rates and inflation are impacting discretionary spending, especially in the furniture segment,” Tromp said.
He added that the group continues to maintain strict credit controls to manage operational risk.
“Our credit management processes remain strict, and we operate within defined risk limits,” he said.
Last year, Nictus Holdings began construction on six new retail stores in Walvis Bay as part of a broader coastal expansion strategy across two major sites in the town.
The development includes new Tiger Wheel & Tyre and Nictus outlets at the corner of Theo Ben Gurirab Avenue and Circumferential Road.
A second retail centre at the corner of Dr Nangolo Mbumba Road and 12th Avenue will accommodate TrenTyre, Auas Motors, Glasfit and Build It.
