Africa: the next big retail destination
Aug 3rd 2011, 13:18
Africa makes up 21 % of the World’s population, but contributes less than 4% to formal grocery sales globally. However, this is set to change as South African retailers gear up for growth in the rest of the continent.
Pick ‘n Pay, one of Africa’s largest retailers, recently opened three new shopping centres in Mauritius in June this year (Pick ‘n Pay to open three shopping centres in Mauritius). It also opened its first store in Maputo, Mozambique, also in June this year (Pick ‘n Pay opens first store in Mozambique). Pick ‘n Pay already has outlets in Namibia, Botswana, Swaziland and Zambia.
The Spar Group is not far behind in branching into Africa. In May this year, Spar International opened its first supermarket in Lilongwe, Malawi. This makes “Malawi the 34th country in which the grocery retailer is present” and puts it in sync with Shoprite, which has supermarkets in Lilongwe and Blantyre (Spar opens first store in Lilongwe).
Apart from South Africa, Shoprite already have outlets in about 15 African countries. This includes Angola, Botswana, Ghana, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Nigeria, Swaziland, Tanzania, Uganda, Zambia and Zimbabwe (Shoprite - Shoprite in Africa).
Massmart has also expanded into Africa and trades in the likes of Botswana, Ghana, Lesotho, Malawi, Mauritius, Mozambique, Namibia, Nigeria, Swaziland, Tanzania, Uganda, Zambia and Zimbabwe (Massmart Corporate Profile) Walmart will most likely expand into Africa, pending its deal to trade in South Africa.
Fresh produce retailer, Fruit & Veg, has also recently opened two Food Lovers Market in Windhoek and Swakopmund , in Namibia. “The Swakopmund store is located in the very first Food Lover’s Market shopping centre, an emporium dedicated to the arts of gastronomy and delivering good food to Namibian food lovers.” (Good news for Namibian food lovers)”
Africa is one of the last major uncharted growth opportunities for big business and South African food retailers are certainly making their mark. Perhaps clothing and apparel retailers will follow suit in time to come.
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