Retail
From The Report: Nigeria 2023
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The second-largest contributor to GDP, the retail sector has long been a driver of growth and a bellwether of Nigeria’s economic trajectory. Several challenges have impeded the sector from fully leveraging the potential of its large consumer market, such as inflation, volatility in the exchange rate and a vulnerability to external price fluctuations. However, there is room for optimism, highlighted by the continued expansion of retail real estate offerings. Although the Covid-19 pandemic had a negative impact on traditional retail activity, it also spurred a growth in e-commerce. The fast-moving consumer goods segment underpinned recovery following the pandemic, reflecting a general shift in consumer preferences that began during the health crisis and continued through 2022. With household consumption set to reach N96trn ($228.7m) by 2025, Africa’s largest consumer market is poised for considerable growth.

This chapter contains an interview with Ebele Enunwa, CEO and Founder, Sundry Markets.

Articles from this Chapter

Overview

On the up: A booming population and the rapid rise of e-commerce creates opportunities for disruption and innovation
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With a population of over 218.5m as of July 2022, Nigeria boasts Africa’s largest consumer market, with retail being a key contributor to GDP second only to oil. The presence of formal retail outlets has undergone notable expansion since the turn of the century, and more space is set to come on-line in 2023. However, informal retail establishments still dominate the sector. Issues such as inflation, currency instability and oil price volatility have proven recurring impediments to sectoral and…

Analysis

Room for choice: Traditional brick-and-mortar stores and vast online offerings leave consumers with a wealth of retail options
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Traditional, informal retailers account for around 70% of African consumers’ food, beverage and personal care purchases. Nigeria had around 600,000 smallscale retailers, primarily grocers, accounting for 97% of national retail transactions according to a June 2022 report by international consultancy Boston Consulting Group. While modern malls populated by international brands have gained traction in recent years, macroeconomic constraints and prevailing market dynamics suggest that the public preference…

Interview

Expanding out: Ebele Enunwa, CEO and Founder, Sundry Markets, on avenues for scaling up and catalysing sector growth
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Interview:Ebele Enunwa What are the biggest challenges for modern retail chains to reach meaningful scale in Nigeria? EBELE ENUNWA: The biggest challenge to reaching scale is a lack of quality retail space due to limited investment by property developers. We have had to build our own retail spaces to address the lack of supply, rendering it difficult to scale since it entails operating beyond one’s core competency. Manpower issues are also a constraint because of the challenge of identifying…