As a thought leader in Nigeria’s retail revolution, Michael Chudi Ejekam watches the sector with a keen eye. As of late, many supermarket giants have turned their attention to Africa, hoping to become established and take advantage of the blossoming market. Out of the top 100 markets, Africa and the Middle East accounted for just 12% back in 2012, but by 2013, the number jumped to 15%, and by 2015, the regions were home to 16.2%. In this article, the Michael Chudi Ejekam Blog will examine several huge supermarket chains that have decided to center on Africa for growth, and explain why they’ve decided to do it.
Wal-Mart aka Massmart
At a recent summit in Cape Town, Wal-Mart CEO, Doug McMillon spoke about his overall goals for the company. “So sometimes people say Walmart is not really a growth company anymore. I want to say: Well, if we layer on $50 to $60 billion, would that count, in three years?” While Wal-Mart and its various subsidiaries are active on a global scale, McMillon says that they plan to put a broad focus on Sub-Saharan Africa. “It’s not only South Africa,” he said. “The whole region has something to offer.”
Pick n Pay
“By any metric, this is the best time to be in Africa,” explained Richard Brasher, CEO of Pick n pay, at the same consumer goods forum. “You can’t hope to control Africa or anything that happens in it, but what you can do is learn to adapt.” The company operates in Botswana, Lesotho, Mauritius, Mozambique, South Africa, Swaziland, and Zambia.
Brasher said that one of the keys to success is recognizing that consumers in different countries have unique needs and preferences and that businesses must adapt to them. The company’s present goal is to expand into Nigeria, but with a mix of both small and large shops to suit the needs of individual communities. His conviction unwavering, “We have ambitious plans for this continent, and we believe there’s a bright future,” Brasher added.
Self-dubbed as the “world’s largest voluntary retail chain,” SPAR has been very active in Africa for a number of years. The company opened its first Cameroon store near the end of last year and plans to continue growing its footprint in Africa in the coming years. SPAR recently ranked seventh on the list of growing retailers in Africa, after seeing more than a 10% increase over the course of a year. It also boasted the fourth-greatest sales in the region.
With the growing middle class and increasing urbanization, consumers are beginning to appreciate a more formal shopping environment. The population is also expected to double by 2050, reaching more than 2 billion people. As the market and need for more shops continue to boom throughout Africa, it will undoubtedly prove a wise a fruitful decision for these retailers to lay down roots now.
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