RETAIL EXPANSION?TRY NIGERIA
It is a declaration that has been promoted to foreign investors at conferences, trade shows and seminars over the years and perhaps a declaration that, more often than not, has been disregarded by many investors as unimaginable but it is a declaration that is slowly gaining traction, especially in the much neglected retail sector. As the second largest economy in the continent and with the rise in purchasing power of middle class Nigerians, the appetite for them to purchase consumer goods in a formal retail environment has been acknowledged by both domestic and foreign retailers who are slowly waking up to the potential opportunities of catering to consumer needs.
Both the grocery and non-grocery retail markets are burgeoning, with the well known European store Spar opening their doors to the public recently in Lagos and Abuja. Shoprite, the continents biggest retailer, continue to go from strength to strength in Nigeria with their most recent opening of their fifth store in June. The Artee Group, whose core activity is focused on retail and who manage a number of retail operations in Nigeria, including Spar, are currently in the process of expanding their portfolio in the non-grocery sector allowing for opportunities to join brands such as Mango and Woolworths.
Sceptics are still cynical that Nigeria does not have the infrastructure to allow for growth in the retail sector, with shopping malls either not meeting the standards required by foreign retailers or big cities such as Port Harcourt, not having any shopping malls thus restricting foreign retailers potential plans for expansion. However with reports and evidence recognizing the power of Nigerians spending both at home and overseas there is no doubt that foreign investors will try to overcome the many hurdles they may face in order to take a slice of Nigeria's fast growing economy. Nigeria is certainly open for business for those who are undaunted.
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