Funmi Aiyepeku, head of innovation, growth and business transformation at FoodCo Nigeria Limited, said the brick-and-mortar model is critical and relevant to retail growth in Nigeria stemming of its quality assurance, credibility and opportunities for unique customer engagement.
The retail segment is a physical storefront that has been described as a critical pillar that will help sustain the Nigerian consumer goods market and drive significant growth in the economy.
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“An attribute of brick-and-mortar retail which many people overlook is its potential to stimulate macro-economic activities across industry. It feeds into several other sectors such as Real Estate, Construction, and ICT which has the potential to create jobs at scale,” Aiyepeku said.
She highlighted that a single FoodCo store employs a diverse workforce including managers, cashiers, sales staff, IT support, cleaning, security, and inventory personnel.
“When considering the total number of stores and corporate roles in departments like management, legal, and HR, the overall investment in talent acquisition and management becomes substantial,” she said.
FoodCo is a consumer goods company established in 1982 as a fresh fruits and vegetable store with interests in retail, quick service restaurants, manufacturing and entertainment.
With 21 outlets spread across Oyo, Lagos and Ogun States, the company operates the largest supermarket chain brand in the Southwest, outside Lagos.
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Acknowledging the growing influence of e-commerce in retail, Aiyepeku emphasised that digitisation has become a transformative tool that is also enabling brick-and-mortar retailers to drive scale, improve their processes and service delivery as well as open up new frontiers for growth.
“It is interesting that digitisation which was once seen as the biggest threat to physical stores, especially at the advent of the pandemic, has become one of the biggest allies accelerating growth in the sector,” she said.
The deployment of technology in brick-and-mortar operations has given rise to the concept of “Phygital,” a hybrid model that allows customers tap into the digital and offline experience to create a more robust and immersive shopping experience.
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“This is particularly important given the emergence of a customer class that seeks a digital-enhanced interface with brands. So, a customer can begin their shopping by first going online to confirm what is available or compare prices, then come in-store for quality assurance and pick-up,” Aiyepeku added.
