By Adetunji Bolorunduro

 

AT Kearney, an American global management consulting firm that focuses on strategic and operational CEO-agenda issues facing businesses, governments and institutions around the globe listed Nigeria as offering the best opportunities for retail investment in Africa. The McKinsey’s Global institute, established to develop a deeper understanding of the evolving global economy reported that Nigeria’s current retail consumption stood at $388 Billion annually and it has been projected that by the year 2030 to rise to $1.4 trillion annually.

The growth experienced in the retail industry can be attributed to the ever expanding population size, increase in middle-class income, modernize retailing, urbanization as well as continuous growing of investments from international retailers.

According to a report by Anthony Bushu, a director for MMIT. Nigeria’s middle-income class is growing rapidly, with increasing purchasing power, by 2030, the middle class is expected to rise to 12 million people. Following the National Bureau of Statistic report of 5.7 people per household, this would account for over 68 million people.

According to a forecast by the Mckinsey Global Institute, by the year 2030, about 35 million households will be earning more than $7500 annually by 2030, vastly increasing the middle-income class greatly. Lagos State, which is the largest populated city in Nigeria, contributed about a quarter of the entire Gross Domestic Products of Nigeria. Which amount to about 60% of the GDP excluding the contribution of oil and gas sector, it is also important to note that about 60% of the commercial activities in Nigeria are being carried out in Lagos State. About 40% of the financial institutions are situated in Lagos State; the single largest power plant along with the 2 largest distribution companies that constituted up to about 50% of revenues of the entire national power company is situated in Lagos State.

 

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                         What are the benefits of the Retail Malls

Retail malls are the most preferred destination for shoppers all over the world for reasons like conveniences, saving, car parking, calm environment. The key ones I will list below.

  1. One of the main benefits of having retail malls  is that it directs traffics to other units in the tower. For instance, people despite their initial intentions whether to window-shop or buy things will always drop by to check out other stores in the mall as well as other units in the twin-tower. Therefore, one customer for a destination in the mall is a prospective client for other stores in the mall.
  2. There is a wide range of high-quality products and brands under one roof and this makes it easier for shoppers to compare prices and shop according to their budgets.
  3. Shoppers always prioritize location, people likes to go to a place that is easier for them to access and Locate. Consumers love to buy all their needs at one location instead of moving from one location to another.
  4. Despite the growing of online platform like E-commerce for online purchases. People still prefer to walk into retail malls because they can feel and touch the quality, try on the brands etc
  5. Consumers consider a lot of things while making shopping decisions, retails stores tend to save costs that may arise from shipping, tracking items, missing packages in the mail, not having to rely solely on calls and messages, unlike online complicated purchase. As a customer, you receive instant gratification; inspect your items in detail.
  6. A Safe environment is very important. Most retail malls provide security guards at all the entrances and exits of the retail mail, security cameras, first aid station in case of emergency.

 

Furthermore, it is also important to state that apart from the convenient shopping experience the retail malls will provide to the prospective customers. It is also an avenue for both Job and wealth creations opportunities for the local community, it will also serve as income revenue for the state government.