Nigeria’s retail market continues to see growth as new investments enhances construction of new retail outlets. The recent addition is the ‘Cash n Carry’ Adeola Odeku branch which was opened on March 9 in Lagos.
The over 600 square meter floor space is located on Adeola Odeku, in the heart of Victoria Island, in Lagos, Nigeria’s commercial capital. Already the floor space has been taken up by big brands including, Samsung, Panasonic, Bosch, Kenwood, Haier Thermocool, and LG.
On display are prominent home appliances like television sets, washing machines, fridges, water dispensers, air conditioners. Also on display were kitchen appliances, generators and general accessories.
“With the opening of Cash n Carry Adeola Odeku, the number of our retail outlets has increased to nine,” Komal Shama, the company’s managing director tells BDSUNDAY.
However, BDSUNDAY survey showed that there are about a dozen other big retail outlets within the vicinity some with very large floor space and have a wide range of products indicating an intense competition for market share.
But Komal is unfazed. “We are hoping to reach out to our customers and making it convenient for our customers, so we feel that Adeola Odeku is high street of Victoria Island and accessible to our customers.
“As for competition, I think the more the merrier,” says the chief executive, “we will maintain our market share by doing what we do best and that is offering customers’ quality products at the best prices.”
“We are the only company that stands by our customers for years and years in warranty issues, after sales issues, we believe we are the number one when it comes to after sales issues,” says Shama.
Cash ‘N’ Carry is one of Nigeria’s premier electronics and household appliances retailer. The company has a network of ultra modern stores conveniently located throughout the region.
A recent report by Research and Markets which analyzes the grocery retail market in Nigeria finds that it is one of the fastest growing grocery retail markets in Africa.
The report looks at the changing retail landscape, the underlying market dynamics powering growth, the market size and the leading supermarket chains, and the future outlook – for supermarket retailing, online grocery retail and out-of-town grocery retail.
“Despite its size, the Nigerian grocery retail market is among the most fragmented in Sub Saharan Africa. In a country of more than 180m people, the largest supermarket chain has just 34 stores. Few chains have branches in multiple cities,” says Laura Wood, Senior Manager at Research and Market.
She added, “The traditional trade dominates retail. Although some international grocers have entered – notably Shoprite and Massmart – there are many more waiting in the wings who have expressed an intention to open stores in Nigeria.
Nigeria’s retail industry has seen growth over the past decade, with formal retail space growing from 30,000sqm to over 300,000sqm across different geographical locations largely due to foreign capital and growth of middle class.
“Availability of relatively better quality products, an improved supply chain, a one-stop shop for varied choices of brands and products, are some of the benefits that accrue to the consumer,” says Ladi Abudu, research director at Davenport and Islington at a recent industry event.
These retail malls are favourite for young people, and considered more efficient. There’s also an economic pay-off creating employment in logistics, store management, sales and after sales services.
The revenues of the biggest retail companies in Africa and the Middle East grew by 19.1percent in financial year in 2016, with an average 5.8percent net profit, according to Deloitte’s Global Powers of Retailing survey.
The Deloitte report stated: “The rising middle class in Africa has contributed to the modernisation of the retailing sector, and many African economies are transitioning toward consumption-driven markets.”
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