By Princewill Ekwujuru

Patronage of superstores for groceries is fast becoming the trend among consumers, due to the quest for convenient shopping experience and electronic payment channels.

Since the introduction of the cashless policy by the Central Bank of Nigeria, CBN, in 2012, preference for payment for goods and services through electronic channels has been on the rise among consumers due to the convenience and safety it offers. As a result, consumers are increasingly attracted to merchants that offer e-payment options.

Most superstores, unlike their competitors, the neighbourhood stores, offer a range of electronic payment channels, including  mobile payment services like mVisa and MasterPass by Visa, MasterCard and Quick teller. Other  factors driving patronage of superstores include urban and young population growth and the changing structure of the environment from traditional to modern channels.

Furthermore, most superstores have locations that are easy to access for consumers, expansive parking space with security, neat and serene environment, which also hosts a wide range of entertainment service providers such as cinemas and eateries.

Some of the superstores benefitting mostly from this increased patronage include Shoprite, Justrite Limited, SPAR, Hubmart Stores Limited, Addide, Grocery Bazaar and Park ‘n’ Shop.

Others are Twine Faja, Ebeano Supermarket, Jendol Supermarket, Genesis Supermarket, Exclusive Supermarket, Goodies, Fresh Meadows Supermarket and others. Most of the superstores target densely populated areas and highways connecting residential areas to corporate areas.

C&M noted that retailing in Nigeria is evolving (as in most emerging economies) as a key driver and enabler of economic growth and modern trade. Also, traditional trade is evolving (with open markets and local stores becoming ultra-modern markets) and growing.

Retail is driving urban regeneration with ultra-modern international malls springing up in key cities of Nigeria. With leisure and social opportunities, the Nigerian retail landscape is evolving to provide a lifestyle option that drives economic velocity that leads to urban transformation.

C&M observed that Nigeria remains a retailer’s delight with a population of about 200 million people, with over 80 million living in its urban areas, as well as a fast-growing middle class.

Consumers speak

Speaking, Mario Achinike, said: “I believe prices are cheaper in superstores because when you buy an original product, compared to the fake you may get in the open market at cheaper price, you will then understand why buying from the superstores is better and cheaper because you can return it to them but  in the open market, you may not get refund and they may even deny because there is no receipt for the purchase.” Corroborating Achinike’s assertion, Ayomide Oyenuga said: “Buying from superstores is better and cheaper because you are relaxed due to the environment, no hassles. I think it is cheaper because of the convenience involved.”

According to Joy Emem, “my main concern when buying food is how fresh it is. When shopping for food,  freshness is a key concern,” she stated.

Another consumer, Ifunanya Obiozo, said: “Although price is important, some consumers prioritise modern shopping experiences. In these modern stores, you do not have to sweat under the sun just because you want to buy things. These places are well air-conditioned; items are well arranged with their prices, so you do not need to waste time haggling like in the open market.

High income consumers are particularly interested in stores with a wide range of products and a comfortable environment, and are willing to pay for these features. Lower income consumers primarily choose stores based on price offers, but item selection and in-store experience are still important.”

“Even though price seems to be a little better in the open markets, you are sure of what you are buying from superstores,” said Joy Irokansi. Prince Owolabi Ayoola pointed out: “When there is promotion, you can get cheaper items at the superstores and some times, you get loyalty cards from the superstores where points are given to a customer who buys from them, and you are rewarded at the end of a period.”

Experts react

Experts see the retail outlets as an engine room for economic diversification and growth based on the rising number and level of patronage.

A public commentator, Jinrise Oche said: “Nationally, there is momentum on the side of retailers to become the engine of the national economic growth especially as the government is actively seeking to reposition the nation with emphasis on diversification of the economy. What is required is for all stakeholders, particularly government, to support the industry in solving many of the industry’s challenges and guide it along the best transformation path so retail can achieve its full potentials of contributing to national employment and gross domestic product and growth, amongst others.”

“Although some international grocers have entered – notably Shoprite, SPAR, Massmart and others, there are many more waiting in the wings who have expressed intention to open stores in Nigeria,” noted Adebayo Olanrewaju, a Retail Management Officer at MarketHub International, a consulting company.

Superstore staff speaks

A senior staff of Spar, Ikeja who pleaded anonymity said: “Retailing is driving urban regeneration with ultramodern international malls springing up in key cities of Nigeria. With leisure and social opportunities, the Nigerian retail landscape is evolving to provide lifestyle options that drive economic velocity that leads to urban transformation.

According to him, “the price we get from our supplier determines the price we place on our items. When the company manufacturing it supplies us and gives to us at an increased price, we would have to increase the price of the commodities. Remember also that we pay rent, tax and other rates. The government cannot say because we sell at cheaper rates, it would collect lower taxes from us. So these things count; yet, our prices are affordable, compared to the quality we deliver.”