The contribution of the retail market to the Gross Domestic Product (GDP) is expected to increase, with the launch of the Retail Council of Nigeria (RCN). TONIA ‘DIYAN reports.
In developed economies the composition of organised retail is much larger than the unorganised. Therefore, it would be safe to presume that economic growth has a direct correlation to increase in organised retail.
Everyone in business has challenges, and are to seek solutions. Therefore, it is time for retail businesses in Nigeria to fight their battle or have their platform to find solutions to certain issues through a global initiative – the Retail Council of Nigeria.
The council seeks to make the retail business nore organised in line with global best practices – making the market place organised. The idea is to formalise the market and create a boost in the sector, impact positively on the growth of the economy. The strategy will promote modern retailing in Nigeria, such that it can contribute its share to the Gross Domestic Product (GDP); and facilitate the development of associated/allied sectors of the economy; provide a platform for networking and disseminating useful information and knowledge to members and the public. It will also create a database of members and encourage members to adopt the right values, imbibe international best practices, wholesome practices, and good corporate governance in the conduct of their business.
The Retail Council would encourage informal retailers move to the next level and become formal . It will operate an open membership system where issues would be collectively tabled to the Government and to various policy makers. The council also has an objective to create employment and bring in Government standard. Above all, it has the responsibility to be accountable to the consumer.
This is a rarely policy that should drive everyone. It is a journey that needs an enabling environment, policy and infrastructural support, where the young aspiring trader is encouraged to become an advance retailer. Nigerians still aspire experience, desire human contact, desire smile and ‘the come and buy something from me attitude’.
The Banks are not left out in all of these, they are also interested in supporting the retail business, but they cannot do so if it is not organised. There are some banks that do not have enough capital and structure to do business, but are excited to be part of this movement. Such banks have promised to encourage their customers to become members of the council and have their businesses organised.
The initiators of the council are legacy minded people who are ready to show their knowledge to the young and upcoming. There is a saying that goes; ‘the young shall grow.’ But how will the young grow when the elders are folding their hands?
Akin Onifade is a retailer at the Balogun Market on Lagos Island. He doesn’t know much about organised retailing even after 12 years in the business. All he does is to refill his shop whenever his stock runs out.
He was told recently of how he can expand his business and be organised. He is, however, skeptical that he might not make as much sales as he used to in the open market. He is also afraid that he might lose his customers.
For Akin, the open market is the best place for him to make a living and relate well with customers.
“How can I benefit from this initiative?” he asked.
Retail market is not about shops only, but every company that has relationship with consumers, including banks, telecommunications, manufacturing, tourism and consultancy firms. The council has an objective to improve the efficiencies of the value chain, reduce wastage, and increase revenue, thereby lowering inflation.
The boom in the retail market would give an impetus to the Information Technology (IT) industry, tourism and banking.
Across the globe, retail employs 17.1 per cent of the workable population and in the United States, it accounts for 14 per cent.
Organised retailing supports the development of various sectors and assists to conserve foreign exchange.
In Nigeria, it would increase the revenue base for the government, ensure compliance with international standards, and generate employment.
In the past, governments at the Federal and states levels had challenges collecting taxes from the unorganised retail market, but with the organised retail market this would not be a problem.
According to Asiwaju Onafowokan, a member of trustees of the Retail Council of Nigeria, the body has the target to formulate, facilitate, and propagate practices and processes in line with international best practices. This, he believes, would lead to increased consumption, a boost in production, employment generation, and, ultimately, the growth of the economy.
Haresh Keswani, a member of Board of Trustees of the Retail Council of Nigeria, said organised retail is related to economic growth. He said the United States and Britain have organised retail which contributes over 80 per cent each to economic growth. In Japan and India, the organised retail market contributes about 66 per cent and 10 per cent to economic growth but Nigeria receives only three per cent due to unorganised retail market.
