Nigeria’s retail sector growth dependent on brick-and-mortar segment

The brick-and-mortar retail segment has been described as a critical pillar that will help sustain the Nigerian consumer goods market and drive significant growth in the economy.

Speaking during a chat with the media, the Head of Innovation, Growth and Business Transformation at FoodCo, Funmi Aiyepeku, said the model will continue to be relevant given the quality assurance, credibility and opportunities for unique customer engagement it offers.

According to her: “An ancillary attribute of brick-and-mortar retail, which many people overlook is its potential to stimulate macro-economic activities across the industry. This is as it feeds into several other sectors such as Real Estate, Construction and ICT. There is also the potential to create jobs at scale.

“For example, in just one FoodCo brand store, we have store managers, cashiers, sales assistants, ICT support, cleaners, security and inventory officers, among others. When you multiply this by the total number of brand stores and include corporate roles in management, legal, and human resources, it stacks up to a significant investment in hiring and managing talent,” she added.

Acknowledging the growing influence of e-commerce in retail, Aiyepeku stressed that digitisation has become a transformative tool that is also enabling brick-and-mortar retailers to drive scale, improve their processes and service delivery as well as open new frontiers for growth.

She said: “It is interesting that digitization, which was once seen as the biggest threat to physical stores, especially at the advent of the pandemic, has become one of the biggest allies accelerating growth in the sector. The deployment of technology in brick-and-mortar operations has given rise to the concept of ‘Phygital,” a hybrid model that allows customers to tap into the digital and offline experience to create a more robust and immersive shopping experience.

“This is particularly important given the emergence of a customer class that seeks a digital-enhanced interface with brands. So, a customer can begin their shopping by first going online to confirm what is available or compare prices, then come in-store for quality assurance and pick-up.”