Bokku retail storm charms consumers amid competition

Some consumers in Lagos are switching from their neighbourhood retail stores to Bokku Mart for their grocery needs, due to its discount sales.

The discount prices also allow retailers, comprising market women, to buy bulk and resell to their customers.

The retail chain which started operations on September 30, 2022, has 75 outlets across the state largely on the mainland. It was founded by Adewale Adeyemi, a business leader and entrepreneur.

BusinessDay observes that the bread from Bokku has been a favourite among consumers as long queues flood the stores. The bread is sold for N1,250, but retailers can buy in a dozen and resell for N1,500.

Ayomide Olarenwaju, a resident of Ikorodu, said ever since the mart opened along Ebute, Ikorodu road, his mother stopped patronising regular retail stores close to them.

“My mother prefers to buy groceries and drinks from there. She enjoys the discount sales and has been leveraging the opportunity to get necessary things for the house,” he said.

Precious Emmanuel, a student of the University of Lagos, who stays at Agege, said her parents prefer her to buy the bread rather than the regular Agege bread.

“Ever since the mart was opened at Alpha Nla Road, Agege, my parents have always told me to buy Bokku bread instead of Agege bread. The flavour of their bread is unique, and it’s always hot,” she said.

However, groceries, toiletries, cooking oil, drinks, body care products, and many other products from the stores are 22 percent cheaper.

These commodities have uniform pricing across all regions and are seen to be cheaper than the open market. A litre of Doven Kings cooking oil at the mart is N2,700 while the open market sells it for N3,000.

A 70g Indomie is sold for N190 while the open market price is N250. Nivea Dry impact roll-on is sold for N1,500 while the open market price is N2,000. 500g Golden Penny pasta is sold for N900 while the open market price is N1,100.

Judah Kolawole, a resident of Ogudu said he had to switch stores when the Bokku Mart came to Ogudu GRA.

“I had some stores that I patronise in my area but since the discount grocery store, Bokku Mart came in, I stopped patronising them. Their products are affordable and always available,” he said.

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Olayemisi, a retailer at Ketu market, said she prefers to purchase the Bokku bread at the Bokku mart along Demurin Road, Ketu-Alapere than another open bakery.

“Bokku has allowed us to purchase up to 15 to 20 pieces of their bread at once for N1,250 and resell for N1,500. I prefer to buy it here because it’s always fresh and hot. It also sells fast because my customers love the bread, and I can buy more than once in a day,” she said.

Meanwhile, the purchase of the Bokku bread is relatively higher than other products in the mart. In the past 11 months, the store employed 200 bakers for its bakery which shows how demanding the bread has been. Most of the consumers who purchase it are permitted to get up to 15 to 20 pieces at once and resell them outside.

“Bokku believes that everyone deserves access to top-quality products at affordable prices. Understanding the economic realities faced by Nigerians, they have managed to strike the perfect balance between quality and cost,” the company said on its website.

It added that it maintained strong relationships with suppliers by optimising its supply chains and providing significant savings to customers.

A recent report by Euromonitor International shows formal supermarkets’ overall sales increased by 24.4 percent to N370 billion last year from N298.1 billion in 2022.

“In 2023, supermarkets in Nigeria navigated a dynamic retail landscape characterised by inflation-driven shifts in consumer behaviour, intensified competition, and adaptations to economic challenges,” the report said.

Supermarkets are classified as retail outlets selling groceries with a selling space of between 400 and 2,500 square metres. Some supermarkets in Africa’s most populous nation are SPAR, Marketsquare, Prince Ebeano, and Goodies.

While supermarkets recorded higher sales, hypermarket stores like Shoprite and Cash & Carry, with over 2,500 square metres saw a decline in sales of N92.6 billion from N100.4 billion.

“Supermarkets manage their inventories better,” Uchenna Uzo, professor of marketing and faculty director at Lagos Business School, said.

According to the National Bureau of Statistics (NBS), the Consumer’s Price Index declined to 33.4 percent in July 2024 from 34.19 percent in June 2024.

On a month-on-month basis, headline inflation also slowed to 2.28 percent in July 2024 from 2.31 percent in June 2024.