KRISPY KREME DOUGHNUT TO OPEN IN NIGERIA

KRISPY KREME DOUGHNUT TO OPEN TWENTY KRISPY KREME® SHOPS IN NIGERIA OVER PERIOD OF FIVE YEARS

Despite President Buhari's two month disappearance recently to the UK, the Nigerian economy in decline and protests from all areas of Nigeria over the lack of visibility by the government to improve conditions for all, the good news is that the retail and business sector still prevails, with the announcement of twenty Krispy Kreme Doughnut shops to open over five years.

The tragedy is that Nigeria desperately requires investment in staple foods-such as the push for the farming of rice in Nigeria by organisations such as GIZ (giz.de). 

Krispy Kreme Doughnuts is a high priced food item in the U.S and the U.K and not easily afforded by everyone. With stores already dotted around South Africa already, it remains to be seen whether Krispy Kreme Doughnut Nigeria 

will be able to whether the economic storm over the next few years

Read more here

RE: SUB-SAHARAN AFRICA COUNTRIES THOUGHTS; HOW TO TAX THE INFORMAL ECONOMY?

African Countries Seek New Ways To Solve Old Problem: How To Tax The Informal Economy -

See more at: http://afkinsider.com/127372/african-countries-seek-new-ways-to-solve-old-problem-how-to-tax-the-informal-economy/#sthash.zWiWliB6.dpuf

RETAIL COUNCIL NIGERIA PREACHES "ORGANISED RETAIL" AS THE WAY FORWARD FOR ECONOMIC GROWTH

The inauguration of the newly formed Retailers Council Nigeria (RCN) took place recently in Abuja with a forum organised to ultimately (and finally!) develop and grow Nigeria's retail sector. The mission behind the Council is to increase consumption, boost production, grow the economy and encouragingly, generate employment.
The forum held on November 18th 2013 featured the two Oluseguns; Former President Olusegun Obasanjo, who is the on the Board of Trustees as Chairman (of course) and Olusegun Aganga, Minister of Industry,Trade and Investment.

 Aganga identified Nigerias retail sector as a major driver to achieve wealth for West Africa's largest economy. Aganga pointed out that not only do great opportunities exist in Nigeria for new and existing investors to take advantage of but that the retail industry in Nigeria has attracted N205.4 billion ($1.3 billion) of investment. Obasanjo spoke of the government and the private sector collaborating to speed up the development and growth of the retail sector.

BusinessDay Media, who spearheaded this first ever retailers forum, conducted research prior to the forum which concluded that through "organising" retail, this would have a positive impact on other sectors such as assisting the developing IT infrastructure in the country and assisting and boosting tourism with a knock on boost to real estate and the service industries. The research also concluded that the way to successfully achieve the much needed boost to the retail industry would occur through ensuring that there is compliance in the sector to international standards including strict policing of counterfeit produce in open market trade as well as in formal retail platforms.

So what does this mean for the Nigeria retail sector? Prospectively, the RCN should serve as a key point of contact for local and international investors looking to start up or expand into areas of Nigeria. However, there is a difference between discussing ideas and actually implementing them. Nigeria, first and foremost, needs to develop the infrastructure in which the retail sector will comfortably exist and flourish, in order to attract such investors. Transport and logistic issues, dare i say it- power supply issues and security challenges are the few but huge obstacles that deter investors. If the government, perhaps lobbied by this newly formed RCN, minimise and mitigate against these issues then this would inspire potential investors to invest.

With Obasanjo as Chair and Aganga taking the reigns, one can only speculate whether this is a platform for more hot air from the mouths of Nigerians or that things may actually come to fruition.

NIGERIA;RETAIL LAND OF OPPORTUNITY.PART 2; MUSHIN LEATHER MARKET

A rainy and cooler day in Lagos in contrast to the weather on the day i visited Balogun Market. It is the day before Good Friday. My family have traveled for Easter. I am dressed ready to tackle Mushin leather market; Converse trainers, shorts and a one piece body suit. But the weather is putting me completely off.   Mushin leather market is on the other side of Lagos (I'm in Lekki) and i'm wondering if i should abandon the mission. The thought of navigating Lagos roads alone to get to this area unknown to me seems tasking...

As the hours passed, the rain persisted, I was about to lose all hope. Then at around midday my friend, the one i mentioned who had joined me at Balogun market, called me to resolve my plight. He sent his cousin to meet me in Lekki, who would then accompany me to Mushin. By the time the cousin arrived the rain had stopped also. I was very thankful! Not only that i will be sticking to the itinerary i had made for my Lagos trip but also i knew that my friends cousin would have more bargaining power regarding taxi fares and be able to negotiate better prices for what i required at the market.(see previous blog post on Balogun market)

 A two and a half hours "cheapish" taxi journey later (We set off at around 1pm. This is not advised by the way. Leave for markets early morning!) we arrived in a built up area swarming with market traders, hustlers, beggars, customers.  Advanced planning had enabled me to develop a contact at this destination through a friend who makes custom handbags from leather goods in Lagos. I understood the relevance of this once i arrived at the market because it is absurdly large, you could easily get lost and caught up with excitement at all the stalls selling leather, suede and the like.He also offered me invaluable advice on understanding how market traders price leather and how i will  be able to identify real leather from the fakes. 

My friends cousin did a stellar job trying to navigate the taxi to my leather contact. He jumped in and out of the taxi more than ten times asking locals if they had heard of the road we had been advised the stall was located on. We sent the taxi driver the wrong way a number of times often getting caught up in a traffic of market customers. We even phoned my contact several times but he was quite useless in directing us. The Igbo to Igbo conversation between my friends cousin and the leather contact still led to confusion. (I imagined if i had gone alone like i intended to initially..what a joke that would have been).

After half an hour of navigating Mushin leather market by car we eventually located the contact. He was just about packing away so i was thankful i had arrived just in time. A little more face to face Igbo conversation and the contact was soon throwing all his colourful leathers on a wooden table in front of me. And they were amazing! Red, yellow, mock croc skin, mock snake skin or whatever, an array of leather...i was certainly impressed. Out of the millions of skins he offered to me I narrowed it down to five and then studied the fabric for its dyed colour, holes in the fabric, size and then cost. Eventually i chose only one, (i know, stingy right!) slightly large piece of fabric, one side dyed navy blue, the other side dyed black with gold flecks (main picture). It is a stunning piece of leather and i started my negotiations, eventually purchasing it for what i felt was a bargain!

I could have easily stayed at the market for an entire day if i had arrived earlier. Beautiful suede fabrics, synthetic leather, raw leather hides; stalls were busy and lots of (informal) money was changing hands. Leather, an apparently $43.4 billion export industry in Nigeria, is crying out for investors (click here for more info). So yet again, another area for private investors to splurge their cash in. Also another area for the government to stop neglecting and start investing in. 

Believe it or not, footwear is prohibited from import into Nigeria, (Exactly. Click here if you don't believe me) so investing in the leather industry will aid in boosting manufacturing industries in Nigeria such as shoes, handbags, jackets and furniture, potentially spilling over to other parts of West Africa, wider countries in the  continent and internationally, thus producing jobs, boosting the market etc etc.

Yes Olusegun Aganga...i'm talking to you!

WHY A LITTLE LAS VEGAS COULD CONQUER RETAIL IN CONTINENTAL AFRICA

If you have followed my blog you will know  by now that one of my focuses has been on the lack of international standard shopping malls on the continent resulting in the lack of potential growth for international retail brands being able to invest in the continent which has a lot of knock on effects for other gripes i have. Returning from a recent trip to Las Vegas, it was amazing/fascinating/incredible to see that hotels along the "strip" have international standard shopping malls within their resorts! And they are fabulously designed! (see picture above).

 So why is it that the continent of Africa is getting it so wrong?

Stumbling upon the Sagachireserach.com website (they focus on Market intelligence across the African continent) via the website HowwemadeitinAfrica.com (as the website title suggests), Sagaci researchers have put together a categorisation and ranking of malls in Africa according to their overall attractiveness to leading "international tenants". At the top, "AAA" ranking relate to malls among the worlds best properties. At the bottom, a 'D'  ranking means it is among the least attractive properties.

Upon reading the rankings i could do nothing other than sigh, roll my eyes and shake my head. I should not really be shocked... but i am, because a continent as rich as Africa should really be able to rival a city such as Las Vegas.

Ok, so here are the rankings;

AAA:4 malls
AA:8 malls
A:13 malls
B:16 malls
C:44 malls
D:126 malls

Now you see why i was shaking my head...

So what does this mean? It means that D's figures need to become AAA figures asap!
Developers who have mentioned or who are planning to build malls need to take the breaks off, stop discussing and start doing! Those with the type of wealth i am striving to accumulate (*cough,cough*) should form consortium's to build or invest in the development of shopping malls or better still, while building hotels build them with shopping complexes like Las Vegas!

Not to sound completely negative... there is also a ranking, provided by Sagaci, of the top 5 shopping centres in Sub-Saharan Africa, albeit that South Africa is not included in the ranking because undoubtedly they are the market leaders on the continent in international standard built malls. Nigeria rank twice among the 5(!) along with Ivory Coast, Kenya and Senegal;

Name of mall	Country	City	Gross leasable area (sqm)	Ranking
Sea Plaza	Senegal	Dakar	14,000	AA
Cap Sud	Ivory Coast	Abidjan	6,500	A
Ikeja City Mall	Nigeria	Lagos	22,650	A
Polo Park Mall	Nigeria	Enugu	20,000	A
The Junction	Kenya	Nairobi	26,000	A

Sagaci's research outlines that there are plans for mall expansion pan-continent, with the aim to try and lure new brands to co-exist with the pioneers who have already made the brave move to invest in the continent (KFC, Mango, Etam,Shoprite),

“In the coming years, boosted by the emergence of a middle class and by the expansion of international brands, the total shopping centre surface should double… with 129 new shopping centres in project across the continent (including 17 in Egypt, 15 in Ghana, 14 in Zambia, 12 in Angola, 12 in Nigeria, 12 in Morocco). Beyond these projects, some countries such as Nigeria, Angola, Tanzania and Ethiopia remain very attractive for developers with an unmet demand of five to 20 shopping centres in each country between now and 2017,” Sagaci noted.

Hmmm...let's see what happens shall we...

NIGERIA;RETAIL LAND OF OPPORTUNITY. PART 1; BALOGUN MARKET

So since my last posting i decided it was about time to put my research,writing and thoughts on the continent into practice by actually visiting and conducting some on the ground research into the retail market.
Destination choice; Nigeria
State;Lagos.
Length of stay; a short ten days with an action packed itinerary befitting somebody with knowledge of and the means to get around Lagos; I didn't have either.
Areas of interest;the formal retail market (shopping malls) and  informal retailing; Balogun and Mushin Market.

So how did my visit go? Firstly i must remark that the the temperature was excessively hot (not that i'm complaining now that i am back in the UK...) so i must commend the market traders who spend time in the heat day to day trying (and certainly succeeding) in making a living.

 Having researched chosen  destinations to visit whilst in Lagos using a number of websites and print media, including the Delta Airlines Sky Magazine, which interestingly is absolutely fantastic in their guide to visiting Lagos state (most of my destinations for checking out the Lagos retail market came from this site) i set about commanding family and friends to organise the logistics to get me to these destinations. Naturally, when you are not 100% familiar with a territory, one can be disillusioned into believing that destinations are relatively easy to get to, thinking the city is small enough to navigate around. So when i was met with coughs and splutters from family and friends to the requests of me needing to get to places such as Balogun, Mushin and Makoko, i was puzzled and saddened by their reaction. I was even warned against going to the markets for a number of entertaining reasons. I tend not to pay attention to warnings.

First destination on my itinerary was Balogun Market. A three hour taxi journey later i understood why my family and friends suddenly found themselves "busy". Speaking in a British (?) accent and probably paying over the odds for my taxi ride, i arrived at Balogun market to be greeted with a colourful chaos. Balogun is a textile market where allegedly you find all the best West African fabrics. The Delta Airways Sky magazine cites that if you visit this market you earn bragging rights for navigating it...so time for me to brag! It was an amazing experience! Among the hustle and bustle, people are making their money, although competition seems fierce as there is literally rows and rows of stalls selling similar or the same Ankara material and the like. Price collusion is rife; every stall charges the same price for fabric, or rather they did to me (British accent causing me problems). I had managed to persuade a friend, who had initially informed me that they had never been to Balogun before, to meet me at the market. Quite fascinating that they had not visited the market, despite the fact they lived less than 20 minutes away.  I began to get the impression that the markets, or at least Balogun, were only for a particular type or class of Nigerian. Hmmmm.....

Market traders were jolly and enjoyed the fact that i was sweating profusely whilst trying and failing miserably to negotiate prices for materials. The market itself is HUGE and absolutely heaving with shoppers. It is however a health and safety nightmare!(see picture above)  I wondered how much money was changing hands here, the total revenue incurred from this massive hive of informal activity. I also partially hallucinated (it really was ridiculously hot) that the market was indoors, where shoppers, such as myself of course, could bask in air conditioning whilst looking at all the lovely fabrics. Or at the least be indoors so that there was shade from the scorching yellow object in the sky. Thoughts of markets i have visited in Shanghai, China, popped into my thoughts, as they were indoors but still very much in the style of outdoor markets with each trader having their own stall. Anyway back to reality...scorching heat.

N.B:I later found out that there is indeed a mall recently constructed in Balogun but  tenants are currently going through problems with the owners and have been evicted. Of course the mall can only house the select few who can afford to pay the rental cost so ultimately the outdoor market will prevail.

I was also impressed by the vast number of stalls selling womens clothing. Lots of on trend clothing imported, no doubt, from China, U.S or Europe. And there were lots of women buying. LOTS. The retail potential for Womenswear in Nigeria is ridiculous but yet there is clearly a lack of formal retail outlets and malls. Build a Mall of America, a Westfield, a Mall of the Emirates and fill it with a combination of western, Nigerian and continental wide African designers and watch the formal retail economy boost Nigeria's GDP...! A no brainer really.

Verdict: Overall, a successful and exciting experience. I left the market armed with two 6 yard Ankara print material and a feeling of pride of having negotiated/conquered this busy market, despite the warnings.
Mushin here i come!

HUGO BOSS; LAGOS VIA GERMANY

With the developed world continuing to take more of a business interest in emerging markets it is only befitting that luxury retailers are grabbing a piece of this lucrative pie. The launch of Hugo Boss at the Palms shopping mall brought out guests and celebrities from the banking, fashion and entertainment industries. Sponsored by Moet et Chandon, it was reported to be a lavish and sophisticated affair that sponsors the image of the brand.
For me, my excitement of this launch is the possible ripple effect and influence this store opening will have on the  continued growth in the number of luxury retailers who will make their first move into the Nigerian retail market. My long term vision and impact of this growth would be for the manufacturing of the garments to take place in Nigeria or at least within the ECOWAS trading bloc...

Yes i know...one step at a time...

But with last years IHT Luxury Conference attracting over 550 delegates, all celebrating and promoting the potential of the luxury fashion industry in the continent, this maybe a vision that  may come into fruition sooner rather than later...!

SUPERMARKETS IN,KIOSKS OUT! THE RISE OF CONVENIENCE SHOPPING CRIPPLE KENYA'S INFORMAL RETAIL MARKET

Uchumi;One of Kenya's leading supermarkets

  Leading supermarket chains in Kenya are expanding from their usual city-centre focus into residential areas creating convenience for shoppers to purchase all their requirements under one roof but meaning that this will impact on resident kiosk owners. Supermarket owners argue that they are not killing business for the kiosk owners, but state that kiosk owners have the benefit of late night convenience, cheap operations and the ease to move their operation to areas of their choice if the market for their products declines. 
Driving the growth of the supermarkets is the emergence of the middle class who prefer to shop in formal settings, citing reasons such as convenience, pricing and good facilities as opposed to the markets or 'Duka' as they are known in Kenya.  
“Kenyans are (therefore) exploiting this accessibility and convenience to shop for consumables such as bread, milk and groceries on a weekly basis,” said Consumer Insight Managing Director Ndirangu wa Maina, the company behind a survey conducted to investigate consumers shopping habits.
 The slow death of kiosks is also being attributed to the frequency in which consumers shop. The survey highlighted a 40% increase since 2011 in consumers buying their necessities weekly. Consumers that shop two or three times a month remain unchanged at 22%.
 “The trend towards weekly shopping is a factor of the personal economic insecurities amongst Kenyans. With the high cost of living, many people are weary of emptying their barrels in one round of shopping and prefer to space it out,” said Uchumi Supermarkets Chief Executive Jonathan Ciano.
Kiosk owners and non-supporters of the growth of the supermarkets believe that the government should wade in to put a restriction on the supermarket invasion. Job losses will be felt throughout their small supply chain impacting on the neighbourhoods in which they operate. Mr Ciano agrees that there are risks to the future of the kiosks when the supermarkets evolve. Despite the reasons why they may still play a key role to local residents, the challenge will certainly remain for them to compete against large, well-stocked supermarket stores. Is this the beginning of the end of informal retailing in Kenya i wonder...?

"HUGE POTENTIAL OF NIGERIA'S RETAIL INDUSTRY"SAYS CEO OF BROLL

BARRIERS TO INVESTMENT HINDERS GROWTH IN NIGERIA'S RETAIL SECTOR

At a recent breakfast meeting at the Nigeria-South Africa Chamber of Commerce, Mrs. Erejuwa Gbadebo, CEO of Broll, a leading property services group in Africa, highlighted the huge potential of the real estate industry as a viable alternative source of income for Nigeria's economy. Mrs. Gbadebo highlighted the fact that growing urbanisation, demography, technological developments, natural resources and financial deepening are five trends  powering Nigeria's appeal to foreign investors. She also stated the challenges that Nigeria faces in developing the retail landscape including the unclear legal framework of purchasing land, the lack of inappropriate and innovative building techniques and lack of up-to-date market data. The impact of the challenges mean that Nigeria's real estate sector, according to Mrs Gbadebo, contributes to only 1.79% of the nations GDP as opposed to 10-15% contribution in other emerging markets. Coincidentally the McKinsey quarterly, a business journal, also recently reported on the rise of the African consumer market as the single largest business opportunity. Growth potential in Africa, according to McKinsey, is estimated at $400 billion by 2020. But yet again there are obstacles in reaching this, this time by the retail companies unable to translate the potential into action.

 Calls on the Nigerian government to lift bans on some areas of foreign trade has been heeded but more needs to be done to drive foreign and local investment. This will help grow the retail sector, aiding in the rise of further development of shopping malls and other areas of real estate.

THE SINKING OF SABUNTA

It was not long ago that my sister, her friend (both alumni of Oxford University) and i were discussing the potential of on-line retailing in Nigeria around the dinner table. I was stating that with no real competitor in the market the gap is certainly there for someone to launch a site to cater to fashion conscious Nigerians, so my sister and i began brainstorming business ideas that we could bring to fruition. It was to my surprise (horror) that my sisters friend proclaimed that in fact there was a website that had recently been actualised for Nigeria selling both international brands as well as domestic fashion labels.

My sisters friend is from Germany and she is very familiar with the businesses of the Samwer brothers who also hail from Germany and are otherwise known as the copy cats of the tech world. Not content with conquering the European and South American tech markets the Samwer brothers, through their start-up incubator Rocket Internet, now wanted to conquer Nigeria!

The site was called Sabunta and looked very professional with HD pictures and a variety of brands to purchase from. They did minimal advertising but were managing to attract customers who gave favourable reviews.With unlimited money being pumped in from Rocket Internet  they were definitely going to retain their position as market leaders if anyone else dared to enter the fashion e-commerce realm. How was i therefore going to be able to compete against them if i launched my own site? And what did the Samwer brothers know about the Nigerian market? I scoffed at the concept of these brothers doing business as a non-Nigerian in Nigeria;how would that work without help from somebody based there?

Until research led me to somebody called Tunde Kehinde, co-founder of Rocket Internet Nigeria, MBA educated from Harvard Business School and co-founder of Bandeka.com, an online internet dating website for people from Africa. Great credentials. Hmmmmm....

So how amusing for me to read several months later that the Sabunta ship is sinking. Well to be fair it has already sunk. They have consolidated the Sabunta site and merged it with their other site Kasuwa to form Jumia. Same template website but sales are not just focused on fashion but also on electronics, games, beauty and errrm.... everything similar to what Amazon provides. Downsizing of operations staff has occurred whilst senior management jobs still retained. 

So now all eyes are on Jumia. This model should prove more profitable for them and i would be interested in hearing what the man behind Rocket Internet Nigeria , Tunde Kehinde, has to say about the new direction they are taking. What i do know is that any future failures would be a sign that perhaps either Rocket Internet are not cut out for the Nigerian e-commerce market or Nigeria is not yet ready for the e-commerce market. What do you think?

READ MORE (Techloy did a fab article on this)

BRICKS AND MORTAR NIGERIA;$124 MILLION DOLLARS TO BE INVESTED IN RETAIL SECTOR

The Persianas Group, the developers of the Palms Shopping Mall in Lagos State,the Polo Park Mall in Enugu State and two further malls currently under development in Kwara State and Oyo State, are to receive $124 million or N20 billion from the IFC, a member of the World Bank Group, to tackle the underdeveloped but rapidly expanding retail and commercial property market in Nigeria. 

The Persianas Group's aim is to build a portfolio of internationally specified purpose built malls which will have several positive impacts for the nation including rollout of 'modern' food retailing, direct and indirect employment which of course is much needed in Nigeria, development of business infrastructure which will attract further foreign investment and payment of tax revenues that will accrue to the government (lets hope the money is  actually pumped back into redevelopment of the country rather than to individuals pockets...)

Mr Adetayo Amusan, Chairman of Persianas Group, said “IFC’s investment in Persianas demonstrates a commitment to supporting Nigerian entrepreneurs and is critical to preparing Persianas for our next phase of growth. This investment will help real estate development contribute to more jobs in businesses offering safe and healthy consumer products and services.”

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LUXURY SECTOR POTENTIAL TO DRIVE AFRICA'S ECONOMIC GROWTH

On November 15th-16th 2012,the International Herald Tribune will host its annual Luxury conference in Rome discussing  the potential and growing influence for luxury goods and global luxury brands in the continent of Africa.
Amongst the exciting line up of speakers, which include the biggest names in the fashion industry such as Donatella Versace, Lauren Bush Lauren, Jean Paul Gaultier, Manolo Blahnik and Sylvia Venturini Fendi, also includes Nigerians Duro Olowo, Fashion Designer and Omoyemi Akerele of Style House. 
The agenda promises to discuss Africa as a potential luxury consumer and producer along with the impact of Chinese investment in Africa, the new generation of luxury consumers and how technology is opening up new channels for luxury retail.

Naturally, luxury investment in the continent will steer towards the most developed of markets and areas of increased tourism. I predict conversations will be based on established markets in Sub-Sahara Africa such as South Africa. Kenya will feature because of the rise of its tourism sector and introduction of luxury holiday and tour packages. Angola, Africa's third biggest economy, has a growing population of wealthy individuals, mainly due to their growing oil exports. Nigeria, of course, Africa's second biggest economy, which has seen an influx of foreign investors entering the market encouraged by the rising population of the middle class. Areas of North Africa will be acknowledged despite recent adversities, amongst other smaller countries in the continent that have a growing middle class and attract a relative number of tourists each year.

Ticket prices, set at £2495 excluding VAT...(exactly!), reflect the quality of speakers invited and the businesses that will be in attendance. One can only dream of attending such an exciting and progressive event for our continent.

To register and book tickets for the event click here

DOMINO'S PIZZA FRANCHISE OPENS IN NIGERIA

I remember when working for British Airways on a stopover trip to Lagos, during my stay at the Sheraton Hotel  i decided to deviate from the traditional foods i would usually steer towards;jollof rice or pounded yam and some type of soup and decided instead to try their pizza. Having been bitterly dissapointed in the quality of pizza i had tasted the previous year on a non-work visit to Enugu State, i felt that an internationally known hotel such as Sheraton would produce a pizza similar to the quality i am accustomed to back in London. 

After waiting patiently for over 30 minutes (salivating with anticipation of a Nigerian 'baked from scratch' pizza, otherwise what could be taking so long?!) i finally saw the waiter heading towards my table. I was immediately horrified by the sight before me. The pizza looked like burnt Akara with something on top that resembled cheese with chicken as my topping. Needless to say i did not eat it. 

Now a few years later Domino's Pizza, one of the worlds largest Pizza chains and the second largest in the United States, has arrived in Nigeria. Setting up shop in Victoria Island, Lagos, the master franchisee is Eric Andre of Eat 'N' Go Restaurant Group. They have already set their sights on expansion across the country to the delight of Nigerians. With the rise in smartphone use to access the internet within Nigeria, Domino's Pizza can emulate and implement the business model which takes place at their other 10,000 plus stores across the world by allowing Nigerians to order pizza, via their mobile phones, to be delivered to their home address.

"Establishing ourselves in this emerging West African country presents a great opportunity for our business, and continues our global momentum as a brand," said Ritch Allison, Domino's Pizza executive vice president of international. "We have a great operator in Eric - his knowledge of the business landscape will be instrumental in making Domino's Pizza the leading pizza brand in Nigeria."

RETAIL GOLD RUSH FOR SOUTH AFRICA

Not content with having attracted big brand names such as Superdry,G-Star and Steve Madden (within the last year i must add), the Spanish retailer Zara has now launched in South Africa. With the rise of the middle class population and increased purchasing power, spending on clothing and footwear totalled £6.6 billion last year making South Africa an optional choice for international retailers affected by the downturn in spending by consumers tightening their purse strings. 

Because South Africa has the infrastructure available to attract and accommodate these big brand names, retail growth can only be set to increase. Thomas Pink, under LVMH Louis Vuitton Moet Hennessy, recently opened their doors in June with Topshop due to open their doors in the next few months. 

So what is the sudden interest in Sub-Saharan Africa? 

The economy in this region has grown 5.2% a year over the past five years according to the International Monetary Fund, affording consumers with disposable incomes to spend on non-essentials. The expansion potential into other parts of Sub-Saharan Africa is also huge with South African domestic retailers already looking at expansion plans into countries such as Angola and Nigeria. Certainly the economic crisis in Europe has slowed down sales for international retailers so expansion overseas is on their radar and with the 'S' at the end of BRICS pertaining to South Africa, it is unquestionably a country retailers are nurturing . 

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THE WORLD'S LARGEST CREDIT CARD COMPANIES HAVE ARRIVED

With the growth of e-commerce in the continent one must consider the implications faced by those who wish to purchase online. Online security all over the world, is always going to be an issue for deliberation when people use their credit cards to pay for goods and the more an online company can assist in safeguarding payments, the more consumers will feel safer and more confident in the online shopping experience. 

As an emerging continent in the online commerce world what better news to hear that Entersekt, a mobile security software development company, has in the last six months acquired Visa, MasterCard and now American Express accreditation to provide transaction authentication for online and mobile payments.

With their head offices in South Africa, they have already signed up a number of South African banks to provide transaction authentication for online and mobile transactions. The CEO of Entersekt, Schalk Nolte, recently commented, "With the advent of e-commerce, the need for fraud prevention technology is higher than ever. Statistics show that fewer people are trading in hard cash, opting to rather conduct their transactions online," 

So what does this mean for the customer in this part of the world? More control over our transactions, reduced possibilities of fraud and an overall more confident approach to online shopping. 

Says Nolte: "Entersekt is committed to enabling mobile and online financial transactions and to providing solutions to combat fraud. We are very proud of our AmEx accreditation and the support we have received from American Express in this process."

Very big smiles all around then.

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TRACLIST;ON THE RIGHT TRACK?

Traclist is a Nigerian on-line search engine that is able to search for a product and  provide results of retail stores in Nigeria that stocks the item you are looking for.

Not a particularly exciting website and clearly they have not built many relationships with retailers as search results return little choice of retailers, however it is a great idea and will be very effective if they develop the site further. With the potential to be in the same league as one of my favourite product sourcing websites, Kelkoo, i  do hope that those behind Traclist put in the time and effort to easily become Nigeria's leading retail product sourcing website.

SHOPRITE; THE TESCO OF NIGERIA

Recently i wrote that bricks and mortar retail is set to grow in Nigeria... well here is further proof! 

Shoprite is set to invest $205 million on real-estate in Nigeria to take their store presence to 13. Their ambition to grow in the nation is currently hampered by the lack of infrastructure in key states such as Port Harcourt, so their solution? Develop it ourselves.

 A business model that Tesco supermarkets has used successfully to conquer the UK is to develop an under-developed area with its store as one of the main attractions. The expansion of Shoprite and plans for infrastructure development can only be seen as an exciting advancement and positive advertisement that Nigeria is an attractive investment. Shoprite, already committed to sourcing local produce, giving back to local communities and supporting foundations, will now also further provide employment opportunities if they succeed in their investment plans. Definitely an expansion to keep an eye on....

E-COMMERCE;KING KONGA CONQUERS LAGOS

From the founder and CEO behind the popular group purchasing website, Deal Dey, comes the highly efficient Amazon style website Konga.Com.

 Selling an array of products ranging from baby care to make-up, Konga.com is a site that is revolutionising the way Nigerians shop. With the rise and rise of e-commerce purchasing in Nigeria, Konga.com is setting the benchmark of how to run an efficient e-commerce business,with a user friendly website and promises of deliveries within Lagos State aimed at 24 hours after ordering on-line. It is worth a mention at this point that even in London, if you require guaranteed delivery within 24 hours this is a feat that would incur a separate express delivery charge of around £5 to £10 additional to the normal delivery cost; Konga offers delivery for free on purchases over N2000.

On their website Konga state that they are, "...obsessed about great customer service..." and they, "...delight in doing things that people generally believe cannot be done." I have been monitoring feedback about Konga for a while now through various social media platforms and those who have used the site and purchased goods are providing positive feedback in all cases. Konga are certainly living up to their boastful words, with each customer proclaiming that Konga remains consistent in their promise to deliver on time and in full.

So what next for Konga? I would think expansion to other states in Nigeria. I do like that they are not being overly ambitious and trying to conquer everywhere at the same time because logistically they may not have been able to build such a fantastic reputation like they have from just concentrating in Lagos. One thing i would like them to to do is have a word with some of our UK logistic companies;they can learn a thing or two from Konga....

EBEANO SUPERMARKETS;REVAMPED,MODERNISED AND READY TO CATER FOR THE DOMESTIC MARKET

Although foreign investment is always important for any healthy growth of a countries economy it is important that governments encourage the growth of domestic companies in order to further stimulate the economy by providing jobs for local labour markets. Ebeano Supermarkets is an example of such retailers that should be heavily encouraged and supported by the government to expand in the market, in order for them to compete alongside big name foreign retailers such as Shoprite. 

Ebeano has recently modernised its store layout  and adopted the use of point of sales (POS) systems for payments at the checkout. This will not only encourage efficiency for workers and a better service for customers but will also allow Ebeano to better manage their inventory to see what products sell well or otherwise thus ensuring they are always catering to their local consumer needs. A pharmacy has also been added in-house, allowing for local residents to shop for beauty, health and medical products at similar prices as the bigger retailers. Lets see more support for domestic retailers please!

RETAIL EXPANSION?TRY NIGERIA

                                          NIGERIA OPEN FOR BUSINESS?

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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