Retail
From The Report: Nigeria 2022
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The Nigerian retail market remains fragmented and dependent on informal sales channels such as neighbourhood markets and kiosks, which account for 90% of retail activity. As in most emerging markets, the bulk of household expenditure in Nigeria is directed towards food. But with traditional in-person shopping limited by lockdowns, and many households facing tighter budgets, the sector contracted by 8.49% over the course of 2020. Nonetheless, retail activity showed signs of recovery by the end of that year. Nigeria remains attractive for investors and retailers that apply growth strategies tailored to specific consumer preferences. While macroeconomic headwinds and currency volatility have weighed on consumer spending power in recent years, price sensitivity is leading to new opportunities for smaller packaging, localised retail developments and the sale of essential goods.

This chapter contains an interview with Juliet Anammah, Chairwoman, Jumia Nigeria; and Chief Sustainability Officer, Jumia Group.

Articles from this Chapter

Overview

Talking shop: A growing middle class, increasing consumer confidence and changing purchasing habits are bright spots for the market
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Home to the largest consumer market on the continent, Nigeria offers attractive opportunities for investors and retailers that apply growth strategies tailored to specific consumer preferences and take into account distribution challenges. While macroeconomic headwinds and currency volatility have weighed on consumer spending power in recent years – particularly since the drop in international oil prices in mid-2014 – price sensitivity is leading to new opportunities for smaller packaging, localised…

Interview

Mindset shift: Juliet Anammah, Chairwoman, Jumia Nigeria; and Chief Sustainability Officer, Jumia Group, on the pandemic’s impact on e-commerce and opportunities in online retail
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Interview:Juliet Anammah To what extent did the Covid-19 pandemic influence e-commerce in Nigeria? JULIET ANAMMAH: Before the pandemic e-commerce retailers thought they were in a business of convenience by providing consumers and sellers with a platform where they could interact – which is convenient if you are not able to go to the store. After the start of the pandemic e-commerce became a necessity because of the health implications of buying in person. Moreover, due to lockdown measures…

Analysis

Clicks and mortar: Accelerated shift towards online shopping prompts retailers and regulators to adapt to changing consumption patterns
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Although informal physical retail sales continue to dominate the Nigerian market, e-commerce has experienced exponential growth in recent years, culminating in a significant push towards online shopping in 2020-21 in the face of pandemic-induced lockdowns. Market Footprint Home to two of Africa’s big-five online retailers, the Nigerian e-commerce market was valued at about $12bn in 2019, according to the US International Trade Administration, and was slated to reach $75bn in revenue by 2025 based…