Nigeria: ‘Retail Sector Has Witnessed Tremendous Growth’
NRGGuardianNews.com - May 7th 2013, 09:40
For the President of DMSRetail West Africa, Joseph Ebata, the retail sector in Nigeria has witnessed a huge growth, despite the challenges bedeviling it.
The Canada-based outfit is the world’s leading retail management, training and consulting company set up to increase retailers awareness towards better customer service and employee satisfaction, using the resulting synergy to improve revenues and profits.
According to Ebata, “the entrance of his company into the West African retail business will reposition the operations of retailing business in the sub-region. And with the emergence of big western styled retail business operation and the gradual shift from the traditional retail trade model to the modern, there is the urgent need to focus on managing businesses for success.
“This is, so, because the successes of the emerging modern retail trade businesses are largely a question of how well they are managed, and we cannot afford a situation where there is no institution or system specifically focused to do this, as it is the case presently. However, it is this void that has led to the creation of support systems as DMSRetail,” he said.
With the retail sector in Nigeria generating over $108b in 2011, Ebata observed that though the sector has witnessed some growth in recent years in terms of its contribution to the Gross Domestic Product (GDP), it would experience boom with better infrastructure.
“The revenue accruing from the sector increased from $69b in 2007 to $108b in 2011. (Source: Retail Planet). Similarly, the sector is undergoing changes with international supermarket brands coming into the country and giving rise to new malls such as The Palms and Ikeja City Malls in Lagos, Tinapa Shopping Centre in Cross River State, Ceddi Plaza in Abuja, the Polo Park in Enugu State and others.
He informed that the ongoing transformations of informal markets such as Oluwole Urban Market and Multifunctional City Centre, the New Tejuosho Market both in Lagos, the Ilorin Ultra-Modern Market in Kwara State and others scattered across the country into more modern facilities will further attract investors into the country.
Recalling that the first major retail outlet emerged in the country in 2005 with the coming of Shoprite from South Africa, Ebata said,“ others retail outlets like Spar in partnership with the Artee Group, Adide and Woolworth later came into the country following Shoprite, noting that the influx is not peculiar to Nigeria alone, as other West Africa countries are also experiencing it.”
Listing the factors that account for this development, Ebata, said, “the growing population, emerging democratic institutions, governments and political stability that come from excessive reliance on oil exports, strong economic growth, rising interest in Africa and the recent crash experienced in the more advanced economies, especially in Europe have combined to make Nigeria and, indeed, the sub-region an attractive bride for global retailers.”
On the challenges facing the sector, he said, “despite the attractiveness of the sector, there are challenges that range from low infrastructure, inadequate electric power supply, limited use of e-payment systems to lack of tools, systems, method and metrics for the retailers to depend.
“Others include the non-existence of established institutions whose main objective is to develop, monitor and manage the successes of retail businesses,” he noted.
Using well established and time tested principles, DMSRetail, he said, has helped to move retail businesses to enviable heights in terms of sales, revenue, profit, greater employee engagement and satisfaction, customer satisfaction and returns to stakeholders.
On the vision of the company, Ebata noted: “It’s our goal that all retailers have access to transformational tools, materials, methods metric systems and cutting-edge technology that deliver more results and match the performance of retail business in the developed countries.”
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