Retail supermarkets in Nigeria

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Modern retail supermarket chains are gradually changing the way Nigerian consumers buy groceries. Especially in the country’s main cities, supermarkets are offering a new kind of shopping that is quickly becoming popular due to rising incomes and changing lifestyles. 

Establishment of Supermarkets in Nigeria

The early 2000s saw the rise of formal supermarkets in Nigeria, replacing the mom-and-pop stores and open markets that had previously controlled the country’s food retail landscape. In 2005, the first of several modern food retail models debuted in Nigeria when the South African retail behemoth Shoprite established its first store in the city of Lagos. Another big chain, Spar, Park’n’Shop, Ebeano, Sahad Stores, A.Y. Abdulsamad, Addide, Hubmart Stores, etc., joined it after its success and lots of online Shopping platforms, Package design Agencies, Delivery companies, Marketing agencies and much more in the ecosystem. 

Supermarket Growth: What’s the Big Deal? 

The supermarket expansion in Nigeria is being accelerated by a number of interconnected socio-economic factors: 

Declining Urban Affluent 

In large cities, a new middle class has formed, one that is more likely to buy in organised retail settings that provide one-stop convenience and has more disposable money. 

Growth in Cities 

A growing middle class and new ways of living have resulted from Nigeria’s over 50% urbanization rate and its large urban population of young people. 

Employment of Women 

More and more working women who don’t have time to shop every day are opting for the convenience of modern supermarkets. 

Goals for Consumers 

Contemporary consumer ambitions are shaped by media, travel, and online exposure to global trends. 

Interest from Investors 

Thanks to its appealing demographics, food retail in Nigeria has attracted a lot of investment from both domestic and international sources. 

Government Policies That Are Helpful 

Supermarkets are able to flourish because of policies that limit the scope of informal street marketplaces in cities. 

Rising Number of Vehicle Owners 

Shopping sprees are now possible because to the fast increase in private car ownership. 

Shifting Purchasing Patterns 

Supermarket spending is higher among younger Nigerians. Purchasing in bulk is favored over making purchases on a daily basis. 

Improvements Made by Shopping Centers 

Amid order to attract shoppers, supermarkets deliberately place themselves amid ostentatious, modern retail complexes. 

Major Grocery Store Chains 

Some of the key supermarket chains that are influencing the retail scene in Nigeria are: 

Sahad Retailers 

There are more than ten retail locations in Abuja and Lagos run by Sahad Nigeria Limited, a wholly owned subsidiary of AS Watson Group in Hong Kong. 

Fair and reasonable 

Across Lagos and the neighbouring state of Ogun, the Justrite retail chain is expanding. 

Stores by Addide 

Supermarket operator Addide has just extended into Lagos from Abuja. 

Discount Retailers 

Payless is a retail chain located in Abuja that has high-end megastores in posh neighbourhoods. 

Shops at Hubmart 

There are Hubmart stores all around Lagos and Lekki/Victoria Island, run by an indigenous grocery chain. 

The HealthPlus Company 

A grocery store chain that specialises in wellness, cosmetics, and health remedies. 

The Marketplace at Prince Ebeano 

A grocery business with headquarters in Abuja is quickly spreading across northern Nigeria. 

Price Supermarkets by Mr. 

Runs upscale department stores in Abuja and Lagos. 

Supermarkets in Artville 

Primary areas of operation in the states of Oyo, Lagos, and Ogun 

Novare Institute 

Possesses the Novare Lekki Mall, which is home to Spar Superstores. 

Superstores for gameplay 

The Sims Nigeria Limited-owned store chain is expanding rapidly in Lagos. 

Where and How to Find Supermarkets in Nigeria

Supermarket chains in Nigeria typically use one of three store formats: 

Independent Grocers 

Located in residential areas, they are independent standalone stores that span 200 to 5,000 square meters in structures that are either owned or rented. 

Huge Retailers 

Stores that cater to high-end shoppers typically have expansive floor plans ranging from 5,000 to 10,000 square meters and are located in upscale areas. 

Shopping Centers

They have a prime location as anchor tenants in contemporary shopping centers. The typical size of a store is 1,000 to 5,000 square meters. 

Among the states in Nigeria, Lagos has the highest concentration of formal retail stores, with more than 40% concentrated on the islands of Lagos, Ikeja, Lekki, Ikoyi, and Victoria, all of which cater to the well-off. 

Supermarkets are plentiful in Abuja, the capital city, especially in affluent neighbourhoods like Garki, Wuse, Maitama, and Asokoro. 

Port Harcourt, Ibadan, and the other big cities in the south-east are also important sites. Despite Shoprite’s 2019 withdrawal, retail infrastructure in northern Nigerian cities remains inadequate. Prince Ebeano, Addide, and Sahad are just a few of the chains that have grown to meet the rising demand. 

In the middle-class neighbourhoods of Lagos, Abuja, Ibadan, and Port Harcourt, smaller local supermarkets are also springing up. 

Product Segmentation and Marketing 

Nigerian supermarkets usually cater to distinct customer categories while offering a wide selection of products: 

In the grocery store, you may find a vast array of foodstuffs, both domestic and foreign, such as grains, beans, cereals, seasonings, oils, canned goods, snacks, fresh produce, dairy, frozen meals, and more. A significant portion of the sales and shelf space is occupied by this. 

Home goods, personal care, cleaning supplies, infant necessities, OTC medications, office supplies, periodicals, and other general merchandise account for fifteen to twenty-five percent of the product range. 

The percentage of fresh foods in the product mix typically ranges from 10 to 15%. This includes bakery items, fresh meat, poultry, and seafood. 

Computing – Consumers with more disposable money are the intended buyers of a select set of electronic devices, including smartphones, televisions, computers, and smart home products. 

For the most part, big box stores market themselves as upscale boutiques where customers can get high-quality, imported goods and enjoy a sleek, contemporary shopping experience. To set themselves apart from open markets, they highlight imported commodities, specialist products, and fresh sections. 

Advantages

The advent of modern supermarkets in Nigeria has accelerated these far-reaching changes in the way people buy for food: 

• Shifting from daily to weekly or monthly bulk purchases 
• From bustling marketplaces to well organized stores 
• Beginning with physical product handling and ending with pre-packaged self-service 
• From a small selection to a wide array 
• Using both informal and formal checkout methods 
• From in-home delivery to one-on-one shopping excursions 
• Including staples, exotics, frozen, and ready-to-eat meals 
• Putting less emphasis on cost and more on ease, quality, and security 

Nevertheless, more than 80% of Nigeria’s food supply comes from conventional open markets and informal retail. Supermarkets, meanwhile, are slowly but surely gaining ground among urban middle-class residents. 

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