- Title: NIGERIA: Emerging retail sector attracts international investors
- Date: 22nd September 2010
- Summary: LAGOS, NIGERIA (RECENT) (REUTERS) INFORMAL RETAIL SHOPS IN THE CITY CENTRE WOMEN SELLING BOTTLES OF ALCOHOL ON THE SIDE OF THE STREET VARIOUS BOTTLES OF SPIRITS ON SALE SPEED BOATS ANCHORED IN HARBOUR HIGH INCOME AND MIDDLE CLASS AREAS OF LAGOS TRAFFIC FLAGS FOR SPAR AND PARK N'SHOP OUTLETS EXTERIOR OF SPAR SUPERMARKET SPAR LOGO VARIOUS OF PEOPLE SHOPPING INSIDE SPAR HARESH KEWANI, MANAGING DIRECTOR SPAR NIGERIA AND ASSISTANT INSPECTING WINE (SOUNDBITE) (English) HARESH KESWANI, MANAGING DIRECTOR SPAR NIGERIA AND CHAIRMAN ARTEE GROUP NIGERIA, SAYING: "Retailing is the next revolution and it is so large that it would outpace our existing economic drivers, be it telecoms be it banking, etc." VARIOUS OF PEOPLE SHOPPING IN SUPERMARKET (SOUNDBITE) (English) HARESH KESWANI, MANAGING DIRECTOR SPAR NIGERIA AND CHAIRMAN ARTEE GROUP NIGERIA, SAYING: "Can Spar single-handedly do it? It is just not possible. So what sort of markets are we looking at? We are looking at opening 200 stores in the next 15 years." VARIOUS OF PEOPLE SHOPPING IN SUPERMARKET (SOUNDBITE) (English) HARESH KESWANI, MANAGING DIRECTOR SPAR NIGERIA AND CHAIRMAN ARTEE GROUP NIGERIA, SAYING: "Many who have never ever visited Nigeria have formed a strong opinion about this nation and they have practically shut their minds to ever even considering Nigeria to be a potential business opportunity or destination. We faced several challenges and initially we went with a great plan of marketing Artee group and our businesses including Park n'Shop, but we realised that we were actually talking to a brick wall." VARIOUS EXTERIORS OF SHOPRITE SUPERMARKET VARIOUS OF BUILDINGS UNDER CONSTRUCTION
- Embargoed: 7th October 2010 13:00
- Keywords:
- Location: Nigeria
- Country: Nigeria
- Topics: International Relations,Economic News
- Reuters ID: LVABGZ7W0WDCUKD6QCR0H3D5BRSY
- Story Text: Nigeria's retail sector is rapidly growing with the middle class willing to spend more as international supermarket chains enter the country and build new shopping malls.
The country's fast growing middle class no longer want to buy produce from small roadside shops or street vendors and the mega stores have received a warm welcome.
Recently, Dutch based Spar, opened a brand new mall in the Lekki, one of the fastest growing commercial areas of Lagos.
Haresh Keswani, managing director of Spar Nigeria, said the entry of the brand underscores the market's vast potential and the country's ambitions to develop its formal retail sector, which had been neglected for many years.
"Retailing is the next revolution and it is so large that it would outpace our existing economic drivers, be it telecoms be it banking, etc," said Keswani.
Spar is partnering in Nigeria with Artee Group, which currently operates the Park 'n' Shop brand of supermarkets in the country.
According to Keswani who is also the Chairman of Artee group, the company has acquired six further locations in Lagos to construct Spar supermarkets and will open at least four before the end of 2010.
Keswani said that the formal retail sector in Nigeria was in its infancy and cannot be dominated by only one or two brands, adding that a new government retail policy now being drawn up would encourage more brands to invest in the country.
"Can Spar single-handedly do it? It is just not possible. So what sort of markets are we looking at? We are looking at opening 200 stores in the next 15 years," he said.
A European Union-funded survey of more than 2,200 businesses in all sectors of sub-Saharan Africa's second-biggest economy showed crime and corruption were the biggest headache for more than 70 percent doing business in Nigeria.
Kewani admitted that doing business in Nigeria was difficult but possible. He said challenges to attracting business to Nigeria could still be overcome as shown in the case of Spar.
"Many who have never ever visited Nigeria have formed a strong opinion about this nation and they have practically shut their minds to ever even considering Nigeria to be a potential business opportunity or destination, we faced several challenges and initially we went with a great plan of marketing Artee group and our businesses including Park n'Shop, but we realised that we were actually talking to a brick wall," he said.
Spar is the second international shopping chain to come to Nigeria after South Africa based Shoprite opened in 2005.
Shoprite is also set to increase its number of malls and recently through the financial firm Actis, secured funding for expansion.
Real estate still remains one of the major constraints for large retailers looking to do business in Nigeria but more modern and larger structures are being constructed in many of the country's main cities. - Copyright Holder: REUTERS
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