How modern retail can thrive in Nigeria

The retail landscape in Nigeria is facing unprecedented challenges, from rising inflation to shifting consumer behaviors influenced by technological advancements. Ade Sun-Basorun, the CEO of FoodCo Nigeria, sheds light on how the modern retail sector in Africa is adapting to these changes to survive and thrive. In a recent interview with CNBC Africa, Sun-Basorun highlighted the key strategies retailers are employing to navigate these turbulent times. One of the major challenges facing retailers in Nigeria is the impact of rising inflation on consumer spending. As inflation rates soar above 20%, households are feeling the pinch, forcing retailers to reevaluate their product offerings and pricing strategies. Sun-Basorun pointed out that many FMCG companies have resorted to miniaturizing products and reducing product sizes to maintain affordability for consumers. Additionally, companies are revisiting the design and packaging of products to cut costs and remain competitive in the market. However, some products have had to be discontinued due to the harsh economic realities. Despite the challenging economic environment, technology is playing a crucial role in transforming the retail industry in Africa. Sun-Basorun highlighted the growing trend of e-commerce and social commerce, where small retailers and artisans are leveraging social media platforms to reach a wider audience and cater to specific consumer needs. The informal trade sector is also experiencing a digital revolution, with significant investments being made in B2B e-commerce platforms that empower small businesses and improve their operations. Sun-Basorun emphasized the importance of modern retailers embracing an omni-channel approach to stay competitive in the digital age. Retailers like FoodCo Nigeria are blending physical store locations with online transactions and social media engagement to cater to the evolving preferences of consumers. The conversation with Sun-Basorun underscores the resilience and adaptability of African retailers in the face of economic uncertainties and technological disruptions. By embracing innovation and leveraging technology, retailers in Nigeria are positioning themselves for long-term success and growth in the modern retail landscape.