Securing the Future of Retail in Nigeria


Through Chinwendu Obienyi

In In a 2013 report, global consultancy McKinsey predicted that the retail sector would be the next chapter in the emerging growth of the middle class in Nigeria.

This growth, McKinsey said, would be “fueled by a new generation of Nigerian consumers” based on the fact that “wholesale and retail sales are already the third largest contributors to Nigeria’s GDP, contributing 16% in total. , although mostly through informal markets.

The report predicted an estimated $40 billion growth opportunity for food and consumer goods in Nigeria between 2008 and 2020, the highest of any African country at the time. However, another insight that emerges from this report is McKinsey’s analysis of Nigerian consumer behavior, particularly the price sensitivity and love of bargains of the average shopper.

What if they didn’t have to choose between one or the other? What if Nigerians could still shop at reasonable prices in a truly inviting environment to create a unique shopping experience? The report also highlights the growing demand for convenient and modern shopping experiences. As income levels increase and the size of middle-class city dwellers grows, the demand for “stores with a wide range of products and a comfortable environment” also increases.

This is why Shoprite Nigeria has set itself the goal of providing a world-class shopping experience by providing convenience and exceptional delivery of quality products.

In an effort to provide customers with a memorable experience and appreciate customers for their continued patronage, Shoprite held its annual Black Friday sales from Friday, November 26, 2021 to Sunday, November 28, 2021, providing attractive offers and giveaways to shoppers in all of its 25 stores across the country.

Speaking about the campaign, Chairman of Retail Supermarkets Nigeria Limited (RSNL), owner of Shoprite in Nigeria, Tayo Amusan called it a “welcome breath of fresh air for many”, and it was indeed. Customers enjoyed massive discounts on various top brands, a number of which were randomly selected to win “Golden Vouchers” which essentially guaranteed that all of their Black Friday purchases at the store would be fully paid for free of charge for them.

Several customers have also gotten their hands on Shoprite’s Black Friday shopping baskets, each containing a variety of carefully curated products designed to ensure that everyone receives something worthwhile.

For example, in Ikeja City Mall branch, two shoppers won a gold voucher of N50,000 and N39,000 respectively. The same happened in Lekki and Festac branches, where two lucky shoppers won won gold vouchers at every Shoprite outlet, much to their delight.

This unique Black Friday campaign is part of Shoprite Nigeria’s larger plan to make life easier for Nigerians by providing high quality products at great prices.

This confirms the company’s commitment to help strengthen Nigeria’s economy and lay the foundations that will secure the future of Nigeria’s retail sector, a significant contributor to the country’s economic well-being.

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We cannot understate the positive impact of a growing retail sector on the economy. This has an impact on employment, investment and lifestyle. Investing in retail facilitates the modernization of an economy, as seen with that of Nigeria and that of many emerging countries around the world.

The more a city urbanizes and develops, the more likely it is to see shopping centers spring up, which directly increases the employment rate in this area.

We also see how a modern retail sector helps formalize the economy and contributes to the flow of government revenue. On the one hand, it can be difficult to track income and revenue in the informal retail sector. However, with modern retail and the investments flowing in, including the increased use of debit cards and electronic payment systems, income is becoming easier to track and taxes, by extension, are becoming easier to pay. .

Both of these help to help government run more smoothly and encourage social accountability.

Campaigns like Shoprite’s Black Friday sales make it all more possible. This campaign, in particular, stands out as it is the retail giant’s first since its successful transition to an all-Nigerian enterprise.

Earlier this year in June, Ketron Investment Limited, a Nigerian company owned by a group of local investors led by property company Persianas Investment Ltd, acquired Retail Supermarkets Nigeria Limited (RSNL), owners of Shoprite in Nigeria, from its former eponymous parent company. , Shoprite Holdings. Initially, the report was met with skepticism, much of which revolved around maintaining the quality of services and goods.

However, as investment consultant Abiola Okueyungbo points out, the fears were premature. He rightly points out that Shoprite was acquired by an investment firm headed by Tayo Amusan, a Nigerian with nearly 30 years of experience building successful businesses in Nigeria, from retail to real estate. Amusan’s Persianas is popularly known for building one of Nigeria’s premier shopping malls by international standards, The Palms Shopping Mall in Lekki, Lagos.

A booming retail sector makes a country a more attractive investment destination. Countries like India, China, Morocco, Turkey and Malaysia are becoming attractive destinations for retail investment year on year, and the same can be said for Nigeria. Shoprite already operates 25 outlets in eight states across the country.

However, there is room for growth, given the enormous potential of Nigeria’s middle class and growing urban population.

The company also employs over 10,000 people directly and indirectly, 99% of whom are Nigerians with many more to be employed in the future.

However, in addition to employing more Nigerians, the company is actively building and nurturing relationships across the country to continually have a significant positive impact on the economy and the lives of ordinary people.


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