Amidst economic challenges in Nigeria, supermarket owners under the Retail Council of Nigeria (RCN) and the National Association of Supermarket Operators of Nigeria (NASON) have reported a 50 percent drop in retail sales volume over the past year.
Mr. Haresh Keswani, a trustee of RCN/NASON and Group Managing Director of SPAR Nigeria, revealed this information during a media briefing following a Stakeholders Meeting with the Federal Competition and Consumer Protection Commission (FCCPC) in Lagos.
“The volume of goods sold in retail in Nigeria has decreased by 50 percent. Although the value of sales has increased due to the Naira’s depreciation and high inflation, this higher value does not accurately reflect economic growth,” Keswani explained.
He also highlighted the struggles businesses face in Nigeria, attributing them to the high cost of compliance.
“Currently, the retail sector is in its second generation. The first generation, including brands like Kingsway and UTC, disappeared years ago. The second generation, consisting of various brands developed over many years, is also struggling to survive. The high cost of compliance in Nigeria is a major factor. Paying salaries on time, taxes, energy bills, and adhering to regulations is expensive.
“We are law-abiding companies committed to focusing on consumers, just as the FCCPC is. There are four pillars in retail, and the journey of a product to the consumer involves more than just the retailer. Retailers are not brand owners and do not manufacture most products, except for minor in-house production like bakery items. Retailers represent various brands, both local and imported,” Keswani elaborated.
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