Despite the tough economic cycle and declining consumer purchasing power, Nigeria’s modern retail sector has continued to show remarkable resilience.
According to a Euromonitor International report, released recently, the sales value of supermarket chains in the country surged by 24 per cent in the Year 2023, a no mean feat, when viewed against the backdrop that the evaluation is coming at a period when petroleum subsidy removal and the devaluation of the Naira have led to an 18-year high inflation rate of 28.8 per cent.
Speaking on the prospects of modern retail in Nigeria, Head of Innovation, Growth and Business Transformation, FoodCo Nigeria, Funmi Aiyepekun described the report as underscoring the criticality of modern retail in driving economic recovery and cushioning the effects of a rapidly declining disposable household income.
Aiyepeku identified accessibility to competitively-priced goods as one of the key drivers accelerating the growth of organized retail in the country.
“Consumers can save between 8-15% by shopping at supermarkets versus the open markets where vendors typically round up prices to avoid dealing with finding change for cash transactions.
“For budget-conscious shoppers, looking for seamless and convenient payment options, modern retailers are a straightforward solution because they offer a variety of payment channels ranging from bank transfers to card payments. Accordingly, customers do not need to bother with having cash when they need to shop neither do they need to patronize Point of Sale (POS) operators which come at an additional cost per transaction,”she stated.
According to her, the rising cost of transportation has also made it imperative for consumers to consolidate shopping activities within locations, stocking a wide assortment of goods under one roof.
“As a major retailer with an extensive product range, FoodCo enables this efficiency for shoppers,” she opined.
She, therefore, called on stakeholders, within the ecosystem, to brace up and ensure that the sector is well positioned to offer respite to a consumer class that is feeling the pressure of the tough economic cycle.
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