Shoprite sees Scope for 700 Stores in Nigeria, Plans for Abuja and Illorin in 2012

JOHANNESBURG, Feb 21 – Nigeria has the potential to become as big a retail market for South Africa’s Shoprite as its home base, the head of the supermarket chain said on Tuesday, playing down concerns of rising poverty in Africa’s most populous country.

“Several cities in Nigeria have populations of more than 8 million people. I can’t say all of them have the same spending power, but Nigeria can support the same number of supermarkets as South Africa,” Shoprite chief executive Whitey Basson told Reuters in an interview.

“Even if you have 60 percent of the population living in poverty, 40 percent of the Nigerian population is still bigger than the South African population.”

Shoprite, which reported a 19 percent rise in first-half earnings on Tuesday, runs about 950 supermarkets with 729 of those in South Africa and two stores in Nigeria.

It plans to open 12 more stores outside of South Africa by the end of June, including in the Nigerian cities of Illorin and Abuja. It also plans to enter the Democratic Republic of Congo.

Retailers are increasingly targeting Nigeria, given its population and potential for growth. The country is home to nearly 160 million people, compared to South Africa’s 50 million, according to World Bank estimates.

But Nigeria still has plenty of hurdles to overcome. Poverty is still rising despite strong economic growth, data showed this month. Nearly 61 percent of the population, or about 100 million people, live on less than $1 a day.

U.S. retailer Wal-Mart Stores Inc last year bought a majority stake in South African retailer Massmart, citing growth prospects on the continent.

One Comment

1. 

   Anonymous

   February 22, 2012 at 3:22 pm

   ENGR AUNIWO SAYS ITS IMAGINATION.!!!!!!

   A WISE MAN CAME TO NIGERIA AND TOLD THEM TO PUT FOOD ON THE TABLE .

   HE RATHER FELT IS A JOKE !!!!!! IMAGINATION.

   THIS IS WHAT OUT OF TOUCH LEADERS NORMALLY SAY .

   YOU THINK YOU CAN TELL A NIGER DELTAN MORE ABOUT THE  CREEKS .

   WAKE UP FROM YOUR SLEEP.

   PEOPLE ARE CURIOUS AND BEGINING TO ASK WHY????

   YOU NEED TO GET THAT IN YOUR HEAD.