The Nation Newspaper

Tag: retail

  • Retail outlets: Clearance sales to the rescue

    Retail outlets: Clearance sales to the rescue

    For retailers of fast moving consumer goods, innovation is key. Faced with the challenge of disposing old stocks and re-stocking when economic realities are taking their toll on businesses, most of them have resorted to clearance sales, a sure and innovative way of retaining the loyalty of ustomers. TONIA ‘DIYAN writes

    Mrs Modupe Shopeju, owner of Delightsome Gift Concept, a store in Gbagada, Lagos, believes that the best option to dispose of old items is to discount them. Such items, according to her, occupy space that have been paid for.

    As a store owner, Mrs Shopeju pays rent and other bills, including salaries of workers. Sometimes, she even takes loans from the bank to fund her business. Expectedly, the challenge of meeting expenses and making profit imposes considerable pressure on her, hence, her resort to clearance sale.

    In a chat with The Nation Shopping, Mrs Shopeju narrated an ugly experience of how she kept a particular flower vase for four years because she wanted to sell it twice its cost price, a decision that boomeranged, making her incur losses instead of profits.

    Her words: “I had a flower vase I bought in 2011 on my shelf. I bought it for N2, 000, and wanted to sell at N4, 000. I regret delaying selling that vase when I was supposed to sell it. I have come to realise that my money has been tied down since then, and that the space the item occupied for years would have been useful for other items. Now, that the economy is bad and my customers complain of lack of money, I am willing to sell it at N2, 000.” She added that her decision to eventually sell at the cost price of that item has not made it inferior in anyway.

    Chinedu Agwu, a retailer in Balogun Market, Lagos, also embraced clearance sale.  Agwu owns a store where he sells shoes and bags. In his store, a black Gucci handbag has been on the shelf for one year and two months, but he thinks putting it on discount is the only solution to getting a buyer for it. He travelled abroad to buy some of the items and paid huge sum of money to ship them into the country.

    Chinedu told The Nation Shopping that because his business is international, it needs huge capital and as such, he borrows money from the bank and for this reason, amongst others, he often places some of his items on discount, particularly now that the economy is not friendly, which is capable of bringing customers from all around the world. This is because people tend to fancy discounted items more, especially luxury goods, which on a normal day they wouldn’t afford.

    “In some cases, people will be waiting for such shop to open because luxury items are on discount. Also, if I want a new deal and a company offers me a new product at a particular discount too, but I do not have the cash to make payment, I can place some of my items on discount, so that the cash I get from it can be used to purchase new items,” he said.

    Indeed, experience has shown that as a retailer, if an item is kept longer than necessary in a shop, the money used to purchase such item will lose its value. The risk of selling it more than its cost price will also arise. Besides, the item would have become older, out of vogue or out of fashion. Mrs Shopeju and Chinedu said the determinants of discount in a harsh economy are weak sales and lack of human traffic to their shops, which has made them discount their items.

    For slow moving items, the merchants said when a retailer is in business, he knows the turnover of goods he gets; he knows how often he sells his items, and if he hasn’t made sales within two months, he wouldn’t have sold everything. Sometimes a retailer can introduce discount because he doesn’t have cash at hand but, if he stocks well over 50 million worth of goods, he can decide to put some things on discount and end up making close to 10 million to meet his immediate needs.

    Speaking on the benefits of placing items on discounts, retailers say that it is certain that the retailer gets back his money on time because what ordinarily he should sell for N2, 000, he will sell for 1,000 and make immediate profit even if it’s little, but getting ones money back is sure. The retailer will surely benefit in the form of customers’ loyalty, as customers will want to come back because of what they are getting.

    Some shoppers, who have benefited from discounts sales, said they got items at reduced rates, particularly luxury items, which ordinarily they wouldn’t have been able to afford.

    Femi Babalola said: “People are ordinarily attracted to cheap items whether the economy is good or bad, even the rich doesn’t want to spend too much when he goes shopping.”

    What this means, according to analysts, is that all parties stand to benefit from discount sales, including manufacturers, sellers, and buyers, and it should be encouraged. Though might not be easy for manufactures and sellers right now.

  • Zenith Bank extends reach with retail, innovative products

    Zenith Bank extends reach with retail, innovative products

    Zenith Bank Plc, a leading lender, is looking beyond corporate banking, expanding its retail banking units. The bank is leveraging on high technology and innovative products to consolidate its net-worth clientele and the unbanked at the retail-end of the market, writes Group Business Editor, SIMEON EBULU.

    Defining  the goal and identifying the operating ones environment in any endeavour is a critical factor in determining the success, or otherwise of any enterprise.

    Zenith Bank Plc, a leader in the provision of financial services to businesses, is expanding its horizon to deepen its activities at the retail end of the business.

    The lender is engaging its cutting edge technology and innovative products to boost its service delivery, not only to its net-worth clientele, but also to the youth – that vibrant segment of the population in dire need of the excellent services already being enjoyed by the bank’s net-worth customers.

    This phase of financial inclusion will enable Zenith Bank to serve as many people as possible in the country, delivering a range of financial services to everyone who could use them and lift people from the zone of financial quagmire, usually typified by want and lack.

    Specifically, this would allow for a process, or situation that creates ease of access to, and usage of formal financial systems by customers, who will ultimately become drivers of the economy and eventually contribute their quota to the economic growth of the nation. It simply typifies a process where all members, youths, students, traders, name it, operating in the economic space, or playing field, do not have difficulty in opening bank account; can afford to access credit; and can conveniently, easily and consistently use financial system products and facilities without difficulty. It is the process which ensures that a person’s in-coming money is maximized, out-going is controlled and can exercise informed choices through access to basic financial services.

    Over the years, Zenith Bank, leveraging on the near limitless opportunities provided by technology, has successfully served customers at the high-end of the market and delivered impressive returns to shareholders in the process. This is validated not only by the consistent delivery of ascending impressive financial results, year-in- year out, but also by the retention of its customers, shareholders inclusive, who have kept fate with the financial institution from inception, in its over twenty five of existence.

    Its uncontroverted leadership position, earned in its diligent pursuit and implementation of globally acceptable Good Corporate Governance Principles, has earned the Zenith Bank awards both locally and internationally.

    The bank has equally established itself as a leader in corporate and investment banking, as validated with the KPMG’s ‘Nigeria Banking Industry Customer Satisfaction Survey of 2014’ confirming it’s position as the most customer focused bank among its peers in the country in both the retail and corporate segments.

    With Zenith Bank’s full scale entry into the retail playing field, potential customers, who’ve been watching from the sideline, on the perception (rightly, or otherwise) that the bank was only cut out to service the financial and entrepreneurial needs of the high echelon of the society, will now be able to access the efficient service delivery that hitherto have been the exclusive preserve, or available to only high net worth customers and corporate bodies. The era now is a Zenith Bank for all.

     

    What’s on offer

    The bank has designed and designated some specialised accounts to meet the specific needs of its target customers. A diligent engagement in these new products will make high flyers of this category of customers. These accounts which are within the retail banking space have their specific features and benefits. They include:

    • Aspire Account – this is targeted at the youth
    • eaZySave Classic Account and
    • eaZySave Premium Account – these have zero account opening balances.
    • Zenith Premium Gold and
    • Zenith Premium Platinum – these are COT free and interest bearing.

    The processes of opening these categories of accounts have been simplified and made enticing. Just take a look.

     

    • Product Description

    Aspire is a savings account designed for the tech savvy, brand conscious, entertainment and socially enlightened student who want flexibility, convenience, benefits and rewards.

     

    • Product Features & Benefits

    –  Ages: 16 – 34

    –  Zero account opening balance

    –  Choice card design: Aspire Ultra, Ace & Zeal

    –  Cashless banking (ATM, POS, WEB, Mobile)

    – Exclusive Z-Mart retail discounts and other periodic promotions at participating merchants nationwide.

     

    • Product Requirements

    –   Passport photograph

    –    Duly completed account opening form

    –    School ID Card or Admission Letter & verifiable means of ID

    You can open an Aspire account at your nearest Zenith Bank branch.

    Facebook: www.facebook.com/Zenithbank

    Twitter: www.twitter.com/Zenithbank

     

    • Product Description

    eaZySave classic account is designed to enable individuals with minimal forms of identification enjoy a value adding banking relationship.

     

    • Product Features & Benefits

    – Zero account opening balance

    – Maximum Single Deposit – ¦ 20,000

    – Maximum Cumulative  Account Balance                    – ¦ 200,000

    –  Debit card – Domestic Use Only (¦ 1,000)

    – Mobile Money:

    – Transaction Limit: ¦ 3,000/Per transaction,

    – Maximum cumulative mobile money balance: ¦ 30,000

     

    • Product Requirements

    –  Passport photograph

    – Duly completed account opening form

    – Registered mobile number

    You can open an eaZySave account at your nearest Zenith Bank branch

    Facebook: www.facebook.com/Zenithbank

    Twitter: www.twitter.com/Zenithbank

     

    • Product Description

    eaZySave premium account is designed to enable individuals with minimal forms of identification enjoy a value adding banking relationship.

     

    • Product Features & Benefits

    – Zero account opening balance

    – Maximum Single Deposit – ¦ 50,000

    – Maximum Cumulative  Account Balance                    – ¦ 400,000

    – Debit card

    – Inter-bank transfers

    – Internet banking

    –  Mobile Money:

    • Transaction Limit: ¦ 10,000/Per transaction,
    • Maximum cumulative mobile money balance: ¦ 100,000

     

    • Required Documentation

    – Duly completed account opening form

    – Verifiable means of identification

    – Passport photograph

    – Registered mobile number

    You can open an eaZySave account at your nearest Zenith Bank branch.

    Facebook: www.facebook.com/Zenithbank

    Twitter: www.twitter.com/Zenithbank

    There are yet other categories of accounts that are equally beneficial and fascinating.

    • Zenith Children Account (ZECA)

    Product Description

    Zenith Children Account is a special deposit account with focus on children education and their bright future. ZECA is more than a regular savings account. It offers a lot of benefits for both parent and child.

    • Product Features & Benefits

    –  Zero account opening balance

    – Age qualification: 0-16 years with automatic  transition to ZECA Teens (13 years) and  Aspire (16 years)

    – SO’s (Standing Orders) for school fees payment

    – Special Invitation to Zenith’s Annual Children’s Parade

    – Special end of year gifts

    – Withdrawal from any of our branches nationwide

    – Cashless  banking (ATM, POS, Web, Mobile)

    • Product Requirements

    – Birth certificate of child

    – 2 Passport photograph of child and parent/guardian

    – Valid means of ID

    – Utility bill

    This account can be opened at Zenith Bank’s branch close by

    Facebook: www.facebook.com/Zenithbank

    Twitter: www.twitter.com/Zenithbank

     

    The KPMG survey, which confirmed Zenith Bank’s status as the most customer focused bank, centred on the perceived quality of customer service delivery by banks from the customer’s perspective across the Retail, Corporate/Commercial and Small & Medium sized Enterprises (SME) segments. And for 2013 and 2014, Zenith Bank led as the preferred by customers.

    For the second consecutive year in the retail segment, Zenith Bank emerged as the most customer-focused bank, followed by others.

    In the SME segment, Zenith Bank moved from second position in 2013 to become the most customer focused bank with others following in the queue, while in Corporate banking customers still ranked Zenith Bank as the most customer focused for the 2014 review period.

    In addition to being the most customer focused bank, Zenith Bank’s performance on all parameters has been recognised by other bodies. A survey conducted by PricewaterhouseCoopers (PWC) to determine the most respected companies and Chief Executives in Nigeria, Zenith Bank emerged first among the banks. In arriving at the conclusion, PWC said a respected company is defined by these enviable parameters: “A good corporate citizen, which is socially responsible with high ethical standards; a trusted company, which promotes good values with a unique and excellent leadership style, coupled with strong management principles and structure plus a smooth succession plan as well as a very resourceful company with excellent business culture.”

    It listed other parameters to include a visionary and revolutionary company with strong focus, innovative with popular brands of high quality; engaging in human capital development and high capacity building and an indigenous company with high local content.

    PWC may have taken into cognisance Zenith Bank’s adherence to good corporate governance practices as well as global best practices and its emergence as a globally recognised brand. The bank’s personnel also believe likewise.

     

    Going forward

    Run by a stable board and management, Zenith Bank has created a professional environment where individuals are encouraged and can aspire to achieve their potential.   Under the management of Peter Amangbo, the bank has a pool of talents at both the middle and top management level, which has enabled it to remain competitive through the series of banking reforms in the country.

    The bank, Nigeria’s biggest by Tier-1 capital sees technology as an enabler and as a generator of new opportunities.

    In Amangbo’s words: “We are forward-thinking, benchmarking trends in technology to shape our future coupled with our practical delivery on a highly automated platform that makes us unique. As the country’s information technology (IT) infrastructure improves, our leading edge in IT keeps us well positioned in the global banking community to sustain our offering of exceptional E-banking services. This is complemented by our risk management system that creates a blend that not only grows our customers’ businesses but also strengthens them. Our credit management system stresses rational procedures and transparency,” he added.

    Zenith Bank blazed the trail in digital banking in Nigeria, scoring several firsts in the deployment of information and communication technology (ICT) infrastructure to create innovative products that meet the needs of its teeming customers. The bank is verifiably a leader in the deployment of various channels of banking technology, and the Zenith brand has become synonymous with the deployment of state-of-the-art technologies in banking.

     

    Financial results

    The bank has been posting impressive financial results over the years, rewarding shareholders with equally impressive dividends.   For instance, its five-year performance from 2009 to 2013 showed steady growth in profit and returns on investments.

    For instance, revenue grew from N277 billion in 2009 to N244 billion in 2010, N307 billion in 2012 and N351 billion in 2013. Profit before tax rose from N35 billion, to N50 billion in 2010, N61 billion in 2011, N101 billion in 2012 and N111 billion in 2013.

    No less heartwarming is the Return On Investment to shareholders, who have been benefitting from the growth witnessed in the profitability over the years.  Shareholders got a dividend of N11 billion in 2009, N26 billion in 2010, N29 billion in 2011, N50 billion in 2012 and N54 billion in 2013.

    Zenith Bank ended  the nine months  to  September 30, 2014 with  profit before tax of N87 billion, profit after tax of N71 billion. Total assets stood at N3.408 trillion and shareholders’ funds N523 billion.

    Zenith Bank Plc. was established in May 1990, and commenced operations in July of the same year as a commercial bank. The Bank became a public limited company on June 17, 2004 and was listed on the Nigerian Stock Exchange (NSE) on October 21, 2004 following a highly successful Initial Public Offering (IPO).  The bank has a shareholder base of about one million and is Nigeria’s biggest bank by tier-1 capital. In 2013, Zenith Bank listed $850 million worth of its shares on the London Stock Exchange (LSE).

    The bank has over 500 branches and business offices in all states of the federation and the Federal Capital Territory (FCT). In March 2007, Zenith Bank was licensed by the Financial Services Authority (FSA) of the United Kingdom to establish Zenith Bank (UK) Limited as the United Kingdom subsidiary of Zenith Bank Plc. Zenith Bank also has subsidiaries in Ghana, Sierra Leone, and Gambia. The bank also has representative offices in South Africa and The People’s Republic of China.

  • Maryland Mall redefines retail marketing

    Maryland Mall redefines retail marketing

    The predictions of experts in the real estate industry that the commercial segment of the sector will be more viable than the residential arm this year may not be unfounded, given the level of development in the commercial wing of real estate business. It is now a common sight across the states to see shopping malls, and office/commercial buildings springing up.

    This trend, it is believed, will boost the retail activities penetration in the country, presently estimated to be at two per cent, compared to what obtains in the United Kingdom said to have 80 per cent penetration. One of such fast developing is the Maryland Mall, located on the Ikorodu Road axis in Lagos.

    The project, being promoted by Purple Capital Partners Limited, a financial and real estate development company, has since been described as being unique in design and rendition, especially because of the commendable use of space as the mall is springing up in a built up area and designed to fit the space available through mainly vertical development.

    The Maryland Mall sits on 7,700 square metres (sqms) of prime land in a built-up neighbourhood which used to accommodate the Maryland Shopping Complex. It has a gross lettable space of about 6,400sqms and it is built vertically, compared to the horizontal buildings that is the style in this clime. Logistics like movement to and around the Mall has been made easy after due studies carried out by the promoters in collaboration with the Lagos State Ministry of Transport.

    The managing partners of the project, Mr. Olaide Agboola and Mr. Obinna Onunkwo, said they worked with the Lagos State Ministry of Physical Planning and Urban Development, and the Ministry of Transportation for about five months “before we were able to get an approval to do what we are doing. We created something like a slip-road around the mall. We created a new road infrastructure at the mall to accommodate the vehicles that will be taking through the Ikorodu road.”

    Already, over 40 brands have keyed into the Mall, with some already configuring their space to suit their brand. The anchor tenants in this mall are led by Shoprite, a reputable retail shop and Genesis Cinemas, which has four screens in Maryland Mall. It was gathered that Shoprite, for the first time, will use the Mall as a demo-location for an initiative it calls “Shoprite-You-Save.”

    Stakeholders in the retail market maintained that this kind of structure and innovation allows even international retailers to further express greater ingenuity they also have in other markets like what obtains in Zimbabwe and other countries in Southern Africa where the You-Save brand or Shoprite Mini brand has been in existence. Maryland Mall will also be fitted with a huge 550sqms LED screen, said to be the largest and newest in sub-Saharan Africa. The screen would be managed by the Troika Group, apart from other screens that is being jostled for by other advertisers.

    Onunkwo, locating the Maryland Mall on Ikorodu Road is strategic considering that the Ikorodu Road axis has a traffic flow capacity of over 5, 000 vehicles per hour. Besides, on the stretch, there is no single mall of international standard that is capable of catering to the aspirations of the retail market.

    Agboola, giving reasons for the vertical construction, explained that in building retail outlets on Lagos mainland, it is extremely difficult to get the size of land that may be required, unlike in the newer parts of Lagos such as the Lekki corridor. This, he said, brings out the ingenuity in the promoters especially in the way the mall has been structured and built. Such ingenuity, he said, enables the owner to maximise his returns and optimise what he gets on his building. For instance, to maximise the space the promoters had to include a dedicated basement parking lot into the building, thereby getting an additional three floors of retail, supported with escalators and lifts.

    The mall, Onunkwo revealed, has the lowest development cost per square metre in the country at the moment. The average cost is estimated to be N730,000/per sqm. “We are well below that and we are clearly the go-to development partner if you want to arrive at development cost that makes sense. In this location and in terms of return profile, we are probably going to be the highest. We have leased both vertically and horizontally,” he said.

    For this duo, the Mall, given the strategies deployed into making it a reality, presents a new way of doing business in a retail space. This is because infrastructure in the state is yet to be commensurate with the on going development in the state; hence, the need for sustainable development.

    They therefore called for sustainable development through the provision of adequate infrastructure, particularly in built-up areas. They also plan the soft opening of their precious project, the Maryland Mall, Lagos, in May, this year.

    Construction of the Maryland Mall, started in September 2014 and its expected to be inaugurated by April 2016.  The Maryland Mall, a partnership between Purple Capital and Network Hotels, is financed locally by Stanbic IBTC.

  • Issues that’ll shape retail business in 2016

    Issues that’ll shape retail business in 2016

    Last year, the retail industry witnessed massive growth. It was driven largely by innovation and the entry of world-class shopping centres, which not only attracted shoppers, but also enhanced their experiences. TONIA ‘DIYAN looks at some of the innovations that made Nigeria a haven for retail business and how they hold promises of redefining the industry in the year.

    Last year was an eventful year for the  retail industry. It witnessed substantial growth, made possible by customer-centric innovations by an avalanche of big retail shops that entered the country.

    Some of the big retail shops that threw their hats in the ring, attracting shoppers and redefining shopping experiences were Shoprite, Spar, Mr Price, Truworth, Mango, PEP, and Casabella, among others.

    With their entry, shoppers became aware of the benefits of shopping in a more conducive atmosphere. Retailers and owners of malls in the Lagos metropolis introduced various innovations that focused on improving  the environment  for  shoppers. Some  expanded their businesses, while others partnered big players  to enhance the experience of their customers.

    For instance, a big players , Mr Price, opened more stores and created a befitting website where its customers linked with it real time. The clothing store focused more on improving its supply chain processes by providing better value for money. The retailer’s fashion items catered for all age groups and sizes. It had something for everyone within the store. The innovations worked immediate wonders, growing the Mr Price brand equity.

    Shoprite, acknowledged as Africa’s leading retailer, also made significant inroad into the country’s retail industry. Same for Surulere, Lagos-based retail outlet, Leisure Mall. The upscale retail outlet, on account of its innovation, was the destination of choice for families in 2015.

    As sign of its growing popularity and growing clientele, Leisure Mall was able to achieve 100 per cent occupancy before the end of the first quarter. The retail outlet was able to create lots of awareness on its activities and was able to link with Adeniran Ogunsanya Shopping Mall, its neighbour. The first of its kind, the move gave shoppers opportunity for variety in tenant mix, as more brands came in.

    Similarly, Ikeja City Mall and UAC Restaurants sought to give other operators a run for their investments in the retail business. While UAC Restaurants focused more on operations, training, franchisee support and human capital development, which directly affected the quality of service delivery to customers, Ikeja City Mall opted for the strategy of give-away events that offered shoppers quality products and services at the right prices. The mall came up with product choices and innovations to better serve shoppers.

    Yudala also created brand awareness. In five months, the firm impressively made its way into the consciousness of consumers. The online store is in 10 cities and in all these cities, the Yudala billboards will be the first to greet visitors as they make their way through the city.

    From inception, Yudala has been a highly socially responsible brand with the first of its kind social initiative in retailing in Nigeria, Gyming with the Stars, an initiative that promotes wellness, fitness and entrepreneurship amongst Nigerians from different demographics.

    The initiative featured A-list celebrities. After three successful editions in Ikeja, FESTAC and Surulere last year, the online store has promised more editions in the year.

    The firm has experienced a rapid increase in its fan and customer base with respect to social media, newsletter subscription as well as its online platform, www.yudala.com. It has 15 physical stores across Nigeria with four in Lagos (Lekki, Gbagada, Ikeja and Victoria Island); two in Abuja and eight others in Kano, Uyo, Owerri, Ibadan, Asaba, Enugu, Warri and Port Hacourt. It has received three awards from international brands as ‘Online Retailer Store of the Year 2015’, ‘Best Computing 2015′ on two  brands.

    Yudala dictated the trends last year with the first ever drone delivery technology in Nigeria. To empower Nigerians, Yudala launched a unique sale scheme called the YUBOSS, where an average Nigerian can sell from the Yudala inventory to earn decent commissions at the end of the month.

    With zero capital and an investment, a YUBOSS agent can make up to N1 million  in a month. Powered by Yudala, YUBOSS is supported by Airtel and Access Bank.

    The store also partner renowned insurers, Sovereign Trust Insurance (STI) Plc. to provide all risks cover (except theft) on all devices bought from any of its platforms, whether online or from any of its retail outlets nationwide.

    Last October, retailers expanded from merely meeting customers’ purchasing needs to becoming one-stop-shops, which combined the convenience and unique experience of retail, leisure, entertainment, movies, games and health. The year also saw electronic and household retailers review their flexible payment options for shoppers who love to buy and pay later or at instalments.

    Dealers and distributors of electronics, who took the lead in flexible payment options, saw it as a welcome development in retail business. To them, beyond the need to satisfy customers and make life comfortable for them, the flexible payment option is one of their many strategies to push sales, create space for new stock and encourage shoppers to patronise a particular brand or shop.

    The following month, November, more supermarkets were opened. Clothing lines sprung up among which are Florian London showcased by Polo Avenue in Lagos.

     

    Game-changing innovations

    Before last year, e-payments made slow, steady acceptance by shops. But when they saw the need for a world beyond cash where cashless transaction assisted in growing their businesses, improving the lives of their customers and removing risks associated with carrying, using and handling cash, many retail owners embraced e-payment.

    At the end of last year, retailers who werer pessimistic about the idea of a cashless economy were the same people who encouraged their customers to pay using the Automated Teller Machine (ATM) cards and the Point of sales (PoS) machines for payment.

    Checks by The Nation Shopping in 2014 showed that about 70 per cent of retail shops in the Lagos metropolis owned a PoS machine. On the other hand, few still had ample reasons to hold on to their conventional ways, not because the policy is not good, but because they gave room for doubts on its workability for their kind of business or location.

    Most shoppers avoided carrying cash last year. Thanks to the Central Bank of Nigeria (CBN) that had been doing a lot in terms of awareness for a cashless society. The Nigerian retail industry last year witnessed a huge uptake of e-payment solutions to enable people keep within the CBN daily cash limits, thereby saving money instead of spending cash uncontrollably.

     

    Online shopping took centre stage

    In 2015, most online retail shops offered mouth-watering offers to attract buyers to their platform. Among the platforms that offered so much promise was Jumia, arguably Nigeria’s largest online retail outlet. It offered up to 50 per cent slash on all its products as a gift to buyers who wanted to enjoy the Black Friday.

    With the promise of about 90 percent slash in prices, Nigerians had, before the date, compiled a list of products to buy, even as the online shop sustained the media blitz, declaring that the market would open midnight of Thursday, to end in the early hours of Saturday.

    However, many shoppers, who thought they could make some purchases, were disappointed as none of the shops offered up to the 90 per cent slash on any product on offer on their platforms.

    Yudala launched the first  offline Black Friday Sale in Nigeria, which had a huge turnout.

    On Carmudi.com.ng, vehicle ownership increased with the availability of locally manufactured cars, increase in the availability and sale of Nigerian used cars and access to car loans. Use of personal cars also increased.

     

    Why Nigeria is investors’ bride

    The boom in the retail industry last year, according to experts, could be attributed to rapid economic development, as well as favourable economic policies. The population of Nigeria’s working class also increased. And the fact that they are not only desirous of convenience, but also have the purchasing power, contributed to the growth of the retail sector.

    In fact, the potential buying power of Nigerians is recognized all over the world. Foreign and local investors also see huge and enticing opportunities and prospect for bountiful investments.

     

    There are challenges

    Although, Nigeria has become the irresistible bride for investors, given her large population estimated at 170 million, as well as her huge market, Africa’s largest economy is still contending with challenges. For instance, despite a large market to support more malls, lack of infrastructure particularly electricity remains a big challenge.

    Other challenges that have continued to hold down the growth of the economy especially operators in the retail segment, include hash business environment, lack of access to the right land in the right location, insecurity, multiple taxation, and bad roads among others.

    There is also the challenge of capital. Not a few investors in the retail space lament the high project cost, including the limited local expertise. Experts estimate the cost of completing a project in Nigeria at 2.5 times higher than that of South Africa, for instance.

     

    Looking forward

    “As services are steadily experiencing growth in many economies, the retail service is a new frontier that needs to be better tapped for economic growth,” says Head of Retail Leasing at Broll Nigeria, Mrs Gbadebo Erejuwa. According to her, Nigeria has the favourable economic conditions for a retail industry to thrive.

    Mrs. Erejuwa added that with a growing middle class with disposable income, many people are now able to afford some of the brands they hitherto patronise outside the country. “People always want to shop in a modern environment,” she said, adding that retail shops are springing up all over the place.

    “I think a lot of people are interested in malls and shops. A place where you can go in and get everything is more inviting than going to a market where everything is open and it is crowded and crazy,” she said.

    Mrs. Erejuwa noted that the regime of shopping malls development in Nigeria is an icing on the cake of what the future holds for shopping and sight-seeing experience in the country.

     

     

     

  • Stanbic IBTC Bank expands retail network

    Stanbic IBTC Bank expands retail network

    Stanbic IBTC Bank has opened a new branch at Satellite Town in Lagos. The new branch is expected to serve the financial needs of individuals and businesses in Satellite Town and its environs, in fulfillment of the bank’s promise to bring banking closer to the people by expanding its service channels.

    The Satellite Town branch will avail customers of Stanbic IBTC Bank as well as prospects the opportunity to enjoy quality and efficient banking services through innovative financial solutions.

    The commissioning demonstrates the bank’s commitment to strengthening its business banking portfolio and add value to businesses, said Mr. Obinnia Abajue, Executive Director, Personal and Business Banking, Stanbic IBTC Bank. Only recently, the bank commissioned two cash offices at Orile-Coker and Computer Village, Ikeja, both in Lagos.

    “The new branch reinforces the bank’s promise to bring banking services closer to the people for convenience and accessibility. It ties in with our brand proposition and focus to add value to the small and medium enterprises sector in Nigeria,” said Abajue, adding: “Our target is to ensure a wide network of access points where quality and efficient service delivery is available to our clientele as well as prospects.”

    According to Abajue, the bank invested significant resources into establishing the Satellite Town branch because of its strategic importance as a centre of commerce. He said the new branch will accommodate traditional as well as electronic banking services and will render full banking services to meet the growing financial needs of individuals and businesses in the area.

    He assured residents of Satellite Town that the bank is there to stay while reiterating its determination to move them and their businesses forward by providing financial solutions that add significant value.

  • U.S to assist Nigeria to develop retail food industry

    The United  States (U.S) government has assured Nigeria of its  readiness  to  support   current  efforts on food security to  enable consumers enjoy stable supplies and reasonable food prices.

    Speaking with journalists in Lagos before the commencement of Retail Food Development Conference with Building Capacity to Create and Sustain Superior Performance in the Retail Food Business in Nigeria as its theme, United States Department of Agriculture (USDA’s) Regional Agricultural Counselor for Nigeria, Ghana, Benin, Cameroon and Liberia, Kurt Seifarth said U.S will grant aid to help increase food production and ensure that the food chain works.

    He said the USDA had explored a number of tangible measures which, if implemented, would have a significant impact on food security and directly benefit consumers.

    According to him, supermarkets and other retail outlets  have key roles to play in feeding the population as  part of the food value chains, adding that it has become necessary to strengthen safety controls to help smallholders engage with large retailers on wider markets for their agricultural products.

    He said smallholders and large commercial retailers need an enabling environment with adequate training, storage infrastructure, new skills and methods with which to improve the resilience of their production systems.

    He commended the Federal Government for containing the outbreak of bird flu, adding that it demonstrated the  preparedness of the government to combat poultry  health emergencies.

    According to him, the bird flu impact on U.S was devastating with the  incidence and spread of high pathogenic avian influenza (HPAI)  growing faster than expected.

    He noted that quick action and good biosecurity measures were the keys to control highly pathogenic avian influenza, adding that the U.S was quite unprepared for the avian influenza outbreak.

    He said the country was so shocked by the outbreak that it introduced a high surveillance programme with stringent biosecurity measures.

    The outbreak experienced in America which came to an end in June, was the largest animal disease outbreak the country has ever experienced.

     

  • 55 years on… Nigeria’s retail sector expands

    55 years on… Nigeria’s retail sector expands

    After surviving initial scare, especially the economic turbulence of the mid 1980s, Nigeria’s retail sector has now grown in leaps and bounds, attracting not only foreign brands, but also the innovative information technology era of online shopping.  TONIA ‘DIYAN writes on the advancement.  

    For urbane Nigerians born uptil 1980, iconic departmental stores like Kingsway, UTC, Leventis, Chellarams, amongst a few others, cannot be erased easily from their memories. These stores not only dotted the major streets of Lagos until the mid 1980s, they also represented the best of retail outlets in the country. From sales of groceries to household equipments, these stores provided quality service and products to Nigerians, irrespective of their social standing in the society.

    Yet, these stores still had much more to offer, apart from shopping, as people visited just to catch some fun. For instance, Emmanuel Odusoga, a 45 year old Nigerian, recalls with nostalgia his various visits to the Leventis and UTC stores in Lagos, especially during festive periods like Easter and Christmas celebrations. Yearly, and on such special occasions, Odusoga, in company of his parents, would visit either of these stores and after shopping, he would take a ‘special’ train ride inside the Leventis or UTC building, which takes them through an alley and end up in the “Father Xmas” grotto for a gift to mark the season. Such were the attractions for many shoppers. For these stores, the major appeal was that quality items they had on offer, the centralisation of items, and the affordable prices.

    But consequent upon the country’s economic downturn of the 1980s, most of the foreign investors who owned the stores relocated them to other countries when the environment was no longer conducive for them to manage. And for years, the delight of such stores were lost, as the stores frittered away, giving rise to smaller and indigenous stores.

    Today, shopping has gone beyond merely meeting purchasing needs. The concept of the present day shopping is an improvement of what it used to be especially with exciting one-stop shopping which presents the convenience and unique experience of retail, leisure, entertainment, movies, games and health.

    Moving forward, the fastest growing format for shops today is the mall-huge, convenient and comprehensive. Nigeria, like the western world is beginning to have a piece of the action. Western styles shopping malls indeed, have come to stay.  With globalization, trade became established in cities across the country.

    Long after, Mega Plaza Shopping mall, Victoria Island Lagos came up. Asides a comfortable ambiance, quality service delivery was one of its treasured strategy.

    It prides itself as the leading shopping mall and has a Super Mega Supermarket, several shops, Ultra modern car park, local and foreign restaurants. It became a recreation spot for shoppers, especially the elites. It also served as a haven for whites who work with the oil companies and other big foreign investments; and of course, fun loving Nigerians.

    The opening of The Palms Shopping Mall, Lekki, Lagos in 2005 brought more excitement and the presence Shoprite and Game as the anchor tenants gave the mall a boost. Game, a discount retail chain, occupies the largest space at about 5,495m², while its rival, Shoprite also sits on an equally ample space. While Game stocks a wide range of merchandise from groceries, electronics, furniture and other household goods, Shoprite, concerns itself with mainly fast-moving consumer goods. Both manifest all the indices of a ramified departmental store complete with an in-house bakery, a fast-food section and different sections for a wide range of goods.

    Shortly after, Europe’s largest retail network, SPAR, also opened its first outlet in Nigeria, at Lekki, Lagos, in a partnership with, Park ‘n’ Shop, a Nigerian retail store owned by the Artee Group. It operates from a 3,000 m² shopping complex, attracting shoppers with moderate to high income profiles. Many see it as a healthy rival to Shoprite in terms of grocery shopping.

    Stores such as Goodies, Addide, Justrite, Home Affairs Surpermarket, Delightsome Gifts Concepts and G-Mall, among others, also made shopping a delight in the various areas where they are located.

    State governments have established free trade zones with several states of the federation, including the Federal Capital Territory partaking in the development, as retail outlets are being established in some of these states.

    The Silverbird Galleria, a huge shopping and entertainment centre, which mounted its first structure on Ahmadu Bello Way, Victoria Island, has also replicated itself bigger in Abuja and working with some state governments to establish in other states. It also replicated itself in Yaba area of Lagos as E- Centre to serve people living in Lagos Mainland, in shopping malls scattered across the country as well.

    On the prospects of the malls development in Nigeria, Center Manager Ikeja mall, Sander Norman expressed optimism about the development of shopping malls adding: “What matters to us is great service delivery to fulfill optimum satisfaction of our customers”. He further stated that, giving the fact that Nigeria is a vast country with great human and material resources, the development of shopping malls would definitely increase.

    Former Broll Cheif, Mrs Erejuwa Gbadebo once said countries like Indonesia and China were developing like Nigeria, but over the years, have remained consistent with development, expressing optimism that Nigeria would improve if the right steps are taken. She noted: “The local brands will enjoy the benefit of being introduced in the formal supply chain. They will become more competitive in terms of price and quality. The trickle-down effect will include better packaging and presentation of Made-in-Nigeria products.”  All these prediction are now playing out.

    Gbadebo foresaw more retail chains making their entry into the eye-catching market. “More foreign investors will come in to compete, franchises will come in from the US, Europe and South East Asia, especially Singapore, in the next few years. These enterprises will be encouraged by the success stories of retail chains and the steadfast appetite of Nigerians for consumer goods,” she said.

    Chief Executive Officer, Delightsome Gifts Concept, Gbagada, Lagos, Mrs Modupe Shopeju said: “Nigeria’s retail environment has achieved considerable growth over time and this can mainly be attributed to the population, which is generating increasing demands of products in the country.

    Another factor of growth in Nigeria’s retail industry is the high rate of sophistication of consumers; people are more sophisticated now, therefore, there is the tendency that there will be demand for more quality and trusted products.

    The improvement in Nigeria’s economy today is leading to an increase in purchasing power, as well as an encouragement in international retails.

  • ‘Retail banking’ll lead to profit’

    ‘Retail banking’ll lead to profit’

    Access Bank expects its retail banking business to turn to profit this year, contributing up to 10 per cent to profit before tax next year and 20 percent by 2018/19, Chief Executive Herbert Wigwe said.

    He said most of its 350 branches would make profit this year after it regained market share following the acquisition of rival lender Intercontinental Bank three years ago. “Before the end of 2018/19 we would see what would be a 20 percent contribution from retail,” Wigwe told Reuters in Lagos.

    However, he said the lender was cautious about creating risk assets this year and was targeting 10 percent loan growth due to domestic market conditions and high interest rates. It grew loans 20 percent last year.

    Two years ago, the top tier lender said it aimed to grow its customer base to between 15 million and 20 million across its African markets by 2018, from around six million, as it shifted its focus to retail banking.

    The bank, which jumped to fourth position out of 21 Nigerian lenders from ninth in 2007, said it expected to sign on two million customers and another two million through its cards product, Wigwe said.  Access Bank shares, which fell 24.2 percent last year, ended flat at N5. Wigwe said the bank successfully concluded a rights issue despite low sentiment in the stock market and foreign investors’ apathy due to worries over the naira currency amidst lower oil prices which slashed government revenues.

    He declined to give further details pending the approval of the offer by regulators. Access Bank launched a cash call last November to raise 68 billion naira from existing shareholders.

    Banks have been shoring up their balance sheets in preparation for the adoption of stricter international capital requirements, which would otherwise see capital ratios for most of them drop by between 100 and 400 basis points.

  • Samsung expands retail presence

    Samsung expands retail presence

    Samsung Electronics West Africa, in partnership with accredited local partners, has stepped up its nationwide market expansion drive with massive roll out of Samsung brand stores across the country.

    In a statement, the firm said the retail expansion drive is designed to provide Nigerians with an exciting avenue to interact with Samsung’s full range of audio visual solutions and an extensive range of premium household appliances in one easily-accessible location, whilst creating widespread destinations where consumers can experience firsthand Samsung’s extensive product ecosystem and receive personalised service from trained sales consultants.

    Its Director of Consumer Electronics, Mr. Sunil Kumar, described the move as a confirmation of Samsung’s effort to make connected lifestyle products and solutions more accessible, and to offer the most consumer-centric engagement in a retail environment.

    “Over the years, Samsung has made strong in-roads with its consumers in Nigeria. We consider the country as a key entry point into Africa. With the growing importance of the region as a primary world market for our premium consumer electronics, maintaining a strong top-of-mind position in Nigeria holds considerable importance for us from a business perspective. Our ongoing expansion drive in the country marks our commitment to delivering excellent products and services to our consumers. We see bright prospects for Nigeria’s future economically, and we expect consumer sentiment to remain positive and indeed move from strength to strength.

  • Nigeria leads South Africa, others on retail opportunities, says RMB

    Nigeria leads South Africa, others on retail opportunities, says RMB

    Rand Merchant Bank (RMB) has said Nigeria is leading South Africa, Egypt, Ethiopia, Libya and Democratic Republic of Congo in offering some of the best opportunities for retailers looking to invest in Africa.

    RMB, which is the investment banking unit of FirstRand Ltd said in a report yesterday population size and growth rates, gross domestic product per capita and urbanisation rates were some of the criteria used in compiling the list.

    “Those are probably the most favorable prospects for retail investors, but they aren’t the only markets available. In the next few years, you could see that changing as your income dynamics change,” Nema Ramkhelawan-Bhana, an Africa analyst at RMB told Bloomberg.

    With about 173 million people, Nigeria is Africa’s most populous nation and has the continent’s biggest economy. McKinsey & Co. said in a July report that the West African nation could be one of the world’s top 20 economies by 2030 with a consumer base exceeding the current populations of France and Germany.

    Disposable income in Africa will probably grow at an average rate of 5.5 percent a year until 2030, the bank said in a report on investing in Africa. By then, the continent’s highest-performing cities will have a combined purchasing power of $1.3 trillion, compared with $750 billion currently, according to RMB.

    While population trends are a key driver of opportunities for retailers, large-scale urbanization pose risks in terms of social problems and unemployment, said Celeste Fauconnier, an Africa macro strategist for RMB.

    “The risk of urbanization is that your slum areas are dominant” within fast-growing cities, Fauconnier said. “Africa’s got the youngest population in the world, which is great for productivity, if they had jobs.”

    Meanwhile, FirstRand Ltd is setting aside $924 million for expansion across Africa as profit increases from regions outside its home market of South Africa.