The lingering war between Russia and Ukraine has continued to have a rippled negative effect on world economies, especially supply chain businesses across Africa and the globe, whose survival is largely dependent on imports from Europe.
Giving fresh insights on the current status of the chain stores sector, Ade Sun-Basorun, Chief Executive Officer of FoodCo Nigeria, a leading omnichannel retailer recalled that while COVID-19 pandemic led a disruption of the sector in a way never witnessed before, the said ongoing war in Russia and Ukraine has further exacerbated the problem.
A new World Bank report which surveyed the impact of the war in Ukraine on global trade and investment observed that world trade dropped by one percent, lowering global GDP by just under one percent. Manufacturing exporters such as Vietnam, Thailand, and Mexico see a sharp decline, especially in energy intensive sectors.
This is just as net exporters of crops in Turkey, Brazil, and India and of fossil fuels by Nigeria and Middle East countries have seen a surge in their exports, attenuating the negative effects of the war. The economic shock waves are moving through five channels: commodity markets, logistics networks, supply chains, foreign direct investment (FDI), and sectors such as tourism.
According to him, Sun-Basorun who spoke at the formal unveiling of the company’s new outlet in Ikoyi, Lagos, said, the COVID-19 pandemic presented an unprecedented challenge, especially in the areas of supply chain disruptions just as the war in Russia and Ukraine has led to lots of upsets.
“All over the world there are shortages of products, raw materials, and extended leave time of shipping that has really continued till today. So, it is within that context that disruption and the further acute challenge brought upon us by the war.”
Pressed further, he said, “Consumers across the world have felt the significant impact of the rising prices of wheat. We also, like all businesses, face the unforeseen and unpredictable increase in the cost of power that is far beyond anything and the impacts of inflation not only on our business but also on our consumers. It has challenged the financial model, profitability and all. The good news is that we have great cycles, small and medium cycles. We redesigned our supply chain, the way we used to plan and we continue to challenge ourselves on how we device or adjust our business so that we can do whilst still ensuring affordability. But as challenging as this cycle is, it will come to an end and when it doesn’t, we don’t want to come out of it stronger. We want to come out of it with our commitment to growing and serving our customers…”
While commenting on the benefits of the African Continental Free Trade Area (AfCFTA) Sun-Basorun said as an African company it is thrilled about the increase in regional integration being facilitated by the body.
Justifying the need for the new outlet, located at the newly completed Ikoyi Plaza, thus bringing FoodCo’s store footprint to 16; spread across Oyo, Lagos and Ogun States, Sun-Basorun stated that the opening of the Ikoyi store was a fulfillment of the brand’s commitment towards bringing the lifestyle advantages of modern retail closer to the people.
“We are excited to formally announce the launch of our 16th store in Ikoyi. This milestone is the continuation of a journey that began 40 years ago when the first FoodCo store opened its doors to customers from a cornershop in Bodija, Ibadan. Till date, we can proudly say that the brand has successfully maintained its promise of delivering top quality at an affordable price, which has been one of the strong pillars of our growth.”
“When the first FoodCo store was opened, our motivation was to offer middle-class families a clean and convenient environment where they could shop for fresh fruits and vegetables. This motivation has since crystallised into an enduring mission to bring the convenience and superior customer service that modern retail offers to our communities.
“Similarly, in keeping with the brand tradition, FoodCo Ikoyi will house our flagship supermarket, bakery, butchery, restaurant, grill and creamery under one roof. It will stock a rich assortment of products including groceries, fresh and packaged foods, fruits and vegetables, toiletries, cosmetics, apparel and other household products. Customers are also guaranteed the choicest cut meats handled under strict quality assurance conditions.
“Customers who prefer to shop from the comfort of their homes or offices can do so via any of our digital media channels or WhatsApp, while our dedicated FoodCo Delivery Service ensures that their items are dropped off right where they want it.”
FoodCo is only one of two omni-channel retailers in Nigeria and was recently ranked as one of Africa’s fastest growing companies by Financial Times. It currently operates the largest supermarket chain in South-West Nigeria, outside Lagos.