Overview of The Nigeria Retail Market over 2020
The Nigeria retail sector continues to be a gold mine and the new growth frontier for local and international investors and retailers in Sub-Saharan Africa favoured by a mix of favourable fundamentals and positive forecast. The retail market accounts for 16 per cent of Nigeria’s Gross Domestic Product driven largely by a market of over 200 million, a growing middle class with spending power and rising urbanisation estimated at 4 per cent per annum, one of the fastest in the world. The sector is predicted to holds a growth opportunity of about $40 billion by 2020 according to a report by McKinsey and Company
But, despite these favourable fundamentals and positive forecast, the Nigeria retail market is under pressure with retailers struggling with under-performance due to poor retail models and business structures, steep competition particularly from new and … new entrants, a lack of critical consumer mix, poor access to data occasioned by poor data gathering, analysis and insights, poor access to funding and poor infrastructure, poor staffing, poor investment in capacity building… As a consequence for instance, there has been a trend of decreasing the size of future shopping centre developments in the current market, a trend of decreasing store footprint and the size of future stores which are ways in which the market has recalibrated to cope with market relating to an economy that is struggling post-recession.
So, the question still is: How can we make the retail sector more competitive and rewarding to investors and retailers while also contributing more to GDP? How can we increasingly transform the fortunes of stakeholders, and in particular retailers in the sector?
Overview of The Nigeria Retail Market over 2020 – Understand the Nigerian retail market and the factors shaping the market & businesss success.
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