Retailing as an Economic boost for FDI and commercial Real Estate Development

How can we increase retail consumption as a driving force in Africa’s largest Economies?

In Nigeria, there is a huge need for commercial real estate such as plaza, shopping mall shopping parks, so as to attract top scale international brands. First, this space doesn’t encompass only trading, rather it becomes a one-stop place for shopping, relaxation, eating, mobile Banking, recreational activities, and family outing.

To boost consumption and consumer spending periodically and also clearer data collection will be available on consumer spending from the greater part of the population, which will give a clearer picture as to the health of the Economy. This kind of expansion in retail management can lead to foreign direct investment from commercial real estate developers who already have portfolios of brands as clientele that can have the plaza 50% filled even before completion. 

This can also create more Retailing giants and create a consumer economy in stabilizing the Nigerian or African Economies. This is also a source of attraction to visitors and tourist alike. Also, foreign talents tend to take all this into consideration when considering employment in other countries.

Foreign brands will see a need to have products entering Africa or Nigeria designed and tailored to the market they operate.

How can the current retail brands increase their asset value, company value, and Book balance?

Since they have the finance and good public image in creditworthiness already. They have easier chances of using their brand equity in Syndicate finances for real estate development of the commercial real estate. Which will lead to more Brick store retailing and also an opportunity to exhibit their unique brand shopping experience or flagship store shopping experience?

Hiding under the E-commerce model like Jumia is not the only strategy in Retail management. However due to the lack of convenient infrastructure on logistics and stable electricity. This seems a safer option to a thread on. 

Conversationally, Konga which used to be one of Africa’s biggest E-commerce giant is gradually divesting into brick & Mortar retailing. In effect, they are ahead of Jumia in the race for retail dominance, although Jumia is currently the top E-commerce giant now in terms of sales numbers. 

Author

Okpozae G.O

Delgrove International Limited

Retail Management Consultant