How focus on customer care built Fraine

Retail selling boils down to the seller having a relationship with the intended customer. For Canon Frank and Mrs. Christine Twine, the founders of Fraine Supermarket, their background in retail and wholesale trading downtown (Kikuubo) was the starting point. 

“Then, we sold to resellers but knew the real deal was in having touch with the final consumer. It birthed the idea of stepping into the supermarket arena and our first stop was at Eliana Hotel in Kigoowa, Ntinda,” Mr Billy Niwaha, the managing director of Fraine Supermarket says.

That was in December 2017 with a small team of 12 with whom they learned but also equipped. 

“The team was inexperienced but willing to learn so each day was for perfecting the skill. That was only possible because we were sold to learning and morphing with the customer journey. These were different from those we served in Kikuubo hence different product uptake trends. For instance, we learned that the uptown retail client wanted quality above quantity and was not scared to pay more for a good product,” he says.

Mr Niwaha also learned the essence of feedback as that helped them better serve the clients by getting the right supplies. 

“Allowing to embrace the difference between the urban consumer and the Kikuubo client has helped us etch a place in this locality as well as expand,” he says.
Explaining the choice of an inexperienced team, Mr Niwaha says they were only starting and with this team, they had the opportunity to grow with them. For instance, in the start, the highest-paid employee earned Shs400,000. 

“With our business still at baby stages, only this kind of team would appreciate that pay. With time, they started enrolling for professional courses because they had gained interest in the work. While some left, others are still here and their input has become professional without drowning the business,” Mr Niwaha who earns a gross profit of Shs550 million per month, says.

This growth caused the company to downsize to one of three Kikuubo outlets because they have found gold in dealing with the final consumer.

Taking over Tuskys’ location
Having understood the clients through feedback and door-to-door tours, in 2019, the Kigoowa branch had become a household name. Expansion was, therefore, inevitable but Mr Niwaha says the safer way was within the neighbourhood, rather than a new place.

“We had made it a habit to move around and study our competition of which Tuskys was one of them. During Covid-19, their stocks were dropping and the numbers did not look good,” he says. 

Apart from talking to Tuskys about a possible takeover, they also sent a letter of interest to the landlord at the time. The former was their major gateway as Tuskys had accumulated big rent arrears. 

“Two months later, the landlord closed the building and subsequently Tuskys’ supermarket. However, with the rent high, we had to make momentous and creative changes to pull clients. That was also because there was another big supermarket across the road and another (Capital Shoppers) not far off,” he says.

He adds that the move to take up the ailing Tuskys was from the prediction that if another big supermarket took up the space, their Kigoowa branch would suffer. Other pulling factors included the good parking space that could take up to 55 cars, more so at the back. Unfortunately, without an easy entrance to the supermarket, many had shied away from using it. 

“We opened up the back, making that parking livelier. We transformed the basement from a store to a shopping space having realised that it is easier for someone to slope down to shop than climb up to the building. With that, coupled with some interior design, the supermarket’s ambience greatly changed the ambience,” he says. 

In the first two months, Mr Niwaha says sales were quite low because customers had become accustomed to the place having low stock. That prompted personal interactions with each customer who walked in to spread the Fraine gospel but also understand their preferences. 

“Though it was laborious, we were committed to correcting any complaints that came through. That built brand trust and in four months, we had picked up with loyal clientele,” he says.

To further appeal to their locale, more so during the Covid-19 days, the Ntinda branch began the 24-hour drive upon realising that there were more customers at 2 a.m than at 10 a.m. That called for team expansion. 

“With the changing work times, people were leaving late and got frustrated that they did not have a trusted supermarket to get necessities such as baby formula, milk, or diapers. 

Therefore, the 24-hour drive was another way to show our clients that we were committed to them,” Mr Niwaha who spends about Shs350m on operating expenses per month,says.

Another location
Through client feedback, Fraine Supermarket saw the need to open a branch in Namugongo, With the mindset of being ‘your neighbourhood supermarket’, Mr Niwaha says the location is key and Namugongo was ideal.

“We knew that we needed to expand to places that were lacking yet knew about our brand and what we do. There were three areas in mind- Kyanja, Ntinda and Namugongo. Hopefully, before the end of the year, we shall be in Kyanja,” he says.

With savings from the Ntinda and Kigoowa branches, construction in Namugongo was between March and August 2023 and the branch launched in October. 

Starting
The supermarket journey started with close to Shs600m. However, before rolling out, a conversation with the landlord secured them a relationship that eased their first days. 

“We had a good relationship with the landlord hence negotiating a six-month grace period. That was also because they were certain that we were there for the long haul. This time helped us stock up, arrange the shelves, and get suppliers,” he says. 
This time also allowed them to understand their competition.

Remaining afloat
The first thing is the relationship, which Mr Niwaha says is gold. “We run on heavy credit from suppliers so our ability to grow is hinged on suppliers trusting us to sell their product and pay them. The moment that discipline is lost, suppliers will fold their business with us, which would spell disaster,” he says.

Adding, “We need to understand every supplier’s dynamics to maintain this relationship. Empowering and strengthening a supplier is also advantageous to the brand.”

Mr Niwaha says they strive to know and understand their clientele and give them what they want. One of the things their clients love is the ability to buy farm produce from the supermarket. 

“That is why we introduced fresh foods, and have boiled foods in our Ntinda branch café while it is only fast foods in Namugongo,” he says.

Challenges
Over time, the supermarket management noticed that lifting amongst employees was a battle they needed to deal with as it is intertwined with the trade. Coming from a strong Christian background, at first, they thought about hiring from their church community. 

“We resorted to working on our measures, such as coding the products, and log-in machines, which helped as the employee numbers have increased to approximately 200. While it is very difficult to rule out lifting, we minimise the habit as much as possible,” he says.

Tax regime
It has been very difficult, more so in the last three years as the Uganda Revenue Authority team has been focused on supermarkets while letting the local duukas run free. 

“The EFRIS [Electronic Fiscal Reporting and Invoicing System] system has helped us straighten up our accounting, such as how we handle suppliers,” Mr Niwaha says.

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