Raheem Akingbolu writes on how local investors are moving towards filling the gap in the formal retail market sector of the economy, which used to be dominated by foreign brands.
These are interesting times for
From
For
Accordingly, when the company recently announced the launch of its latest outlet in Abeokuta, the ancient capital city of Ogun State, it was an excited crowd of shoppers and well-wishers that greeted the news. The new outlet,
The brand's focused pursuit of its expansion agenda, despite the instability in the ecosystem, has seen it double its footprints within the last five years. In the last two years, a period defined by the pandemic-era lockdowns and social distancing stipulations, the supermarket brand has opened five outlets spread across
Managing Director of the company, Ade Sun-Basorun, told THISDAY in an interview that they are a wholly indigenous brand and have built enduring relationships in their almost four years of existence. Consequently, he pointed out that they cannot just pack up and leave, dashing the trust of a large and loyal customer base that have come to depend on the brand for their everyday essentials and hangouts.
In
When Sun-Basorun resumed as then Executive Director in 2017, it was clear that he had his sights set beyond
Today, as CEO, he and a young team of like-minded executives are taking the company through the most ambitious phase of its existence yet.
"Our aspiration is to continue to serve more and more customers across the South West. The first thing for us is the philosophy and belief that we have the responsibility to deliver quality service and affordability to our customers. That mindset drives us to prioritize the delivery of value, in many cases over profitability, and it also drives us to make a number of strategic decisions as to how we structure the business," he said during the Abeokuta launch.
The company is also leveraging innovation and technology to deepen formal retail penetration in
Another notable area the company has made significant changes is in the modeling of its outlets. Early brand stores employed a co-location model comprising a supermarket, restaurant and entertainment centre in one location. Lately, the brand has added a convenience store model tagged Quick Shop, which allows customers to shop quality groceries, toiletries and household essentials within their neighbourhoods. "It makes sense to adopt the convenience store style model where customers can easily access formal retail services on-demand in their neighbourhoods. However, our investments in the co-location model will still continue. We want to be as strategic as possible in order to give our customers viable options to enable to them get the best value out of their retail experience," he explained.
Notwithstanding the changing dynamics,
Still, Sun-Basorun is optimistic about the future of organised retail in
That said, there are tons of opportunities that operators can latch on to. As you can see with the enthusiasm of customers on the shop floor today, there is a growing and sophisticated consumer class that are desirous of the value and convenience that only formal retail can bring. That is where the opportunity is and we feel a responsibility to do our part as an industry stakeholder to continue to serve consumers and give them the sort of experience that they crave," he explained.
The company is also actively building towards that future with significant investments in capacity building and infrastructure for the sector. In 2018, it established FoodCo Fellowship, a management training program aimed at nurturing leadership cadre talent for the Nigerian retail sector. Sun-Basorunsaid at the time: "a major challenge in the industry is the clear dearth of specialist talent. For the industry to scale, stakeholders must make deliberate and industry-wide interventions towards building a workforce that see a future in retail and are motivated enough to drive the growth potentials of the sector." The Fellowship currently attracts MBAs and post-graduate students from top business schools in the country.
As indigenous operators continue to gain ascendancy, the expectation is that they will demonstrate a higher burden of responsibility to develop the many opportunities within the local market and build a sustainable retail economy that's here for Nigerians.
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