The Tide is Turning for Nigeria Retailers
The tide is set to turn for retailers operating in Nigeria over 2020 and there remains a huge opportunity for significant growth notwithstanding our many challenges.
While it is true that Nigeria’s recent economic troubles have had an impact on the immediate prospects for retailers, these challenges do not weaken the long-term potential of the sector. A combination of factors accounts for this optimistic view of the retail market in Nigeria – the size of Nigeria’s population of about 209 milling, growing rate of urbanisation, rising internet and mobile penetration rate and implication for ecommerce growth, and improving availability to and lower cost of credit and implication for stimulating growth in consumption over the next year. However, increasing prices and elevated unemployment continues to limit the extent to which consumption and therefore retail will grow.
Nigeria is a complex market. Despite its size, the Nigerian retail market is among the most fragmented in Sub Saharan Africa. In a country of more than 209m people, the largest retail chain still has below 100 stores! Few chains have branches in multiple cities, the traditional trade dominates retail and few key internationals to boast of.
While projections may be difficult given the inherent challenges of measuring the informal sector that constitute about 95% of the total retail market, the opportunity for significant growth remains clear with some international already waiting in the wings with expressed intentions to open stores in Nigeria. The expressed intensions of some international shouldn’t came as a surprise given the several projections and predictions about the Nigerian retail market as the new retail destination in Africa.
By 2050 for instance, Nigeria’s population is predicted to be 440.4m. It will be, by far, the single largest market in Africa and either the third or fourth largest country in the world by population in 2050. By 2025, it will have nearly twenty cities with populations over 1m people and by 2050 an additional 200m people will be living in urban areas, within easier reach of retailers and service providers. According to Nielsen “by 2025, 55% of Nigerians will live in cities or towns, and the country will experience a 50% urban growth, which would be the fastest globally.
We expect domestic retailers to grow. Also, we reasonably expect some international retailers who have been waiting in the wings, looking to enter the Nigerian retail market to make the move. We also expect to see acquisition and mergers as a gamechanger and potentially a major shakeup in the retail market landscape.
In such a scenario therefore, it becomes all the more important for retail leaders to gain the necessary insights, understand the market better and prepare to maximize the emerging market opportunities. But how will this be achieved?
TRLC 2020 (7th Edition) therefore, is a unique opportunity to engage directly with industry experts, stakeholders and decision-makers, present the sector outlook for year 2020, demystify the many challenges faced by the sector, walk everyone through areas to focus attention and how the choices we make could affect the business and bottom line.
Join other retail industry stalwarts at TRLC 2020 (7th Edition) in a serene atmosphere of conversation and networking on June 24, 2020 at Eko Hotels & Suites, Victoria Lagos, Nigeria with the theme: “Nigeria Retail 2025 – Taxiing The Runway of Retail Success” to gain the necessary insights to understand the Nigeria retail market better, discuss key issues that will shape the development and growth of the market in 2020 and beyond, and prepare to correctly navigate the disruptive changes and challenges and maximize the emerging market opportunities on the horizon.
The Tide is Turning for Nigeria Retailers – gain the necessary insights, understand the market and prepare to maximize the emerging market opportunities.
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