Sales from Nigeria pushed Shoprite group turnover to N3.86 trillion
week, which revealed that e-commerce, shopping malls business is dominated by foreigners and that Nigerians are yet to understand how rich the sub sector is as foreign investors maintain grip of the segment.
This is coming against the background of the released Shoprite Holdings Ltd group full-year earnings of 141 billion rand or N3.86 trillion for its financial year ended July 2017.
Details from the report showed that mega bulk of the earnings came from sales in Nigeria and some fractions from Angola.
Both emerging economies are the key markets outside South Africa that contributing strongly to group sales.
The company recorded significant growth in naira sales, despite recession that hit the Nigeria in the last couple of months.
Preliminary findings from investigations by the Business Hilights Economic Research Team (BHERT) on the growing trend in e-Commerce outfits in Nigeria have made shocking revelations.
One; In the next 20 years or less, traditional market places where aged market women and men display their wares on grounds, tables and shops may give way for more compact and well sophisticated shopping malls controlled by foreign investors.
Two; Within the period, the traditional markets starting from major cities like Lagos, Abuja and Port Harcourt will begin to be deserted as traffic will grow in the e-Commerce driven malls currently known as shopping malls. Shoprite is an example.
Three; The final kill of the traditional African market places will be when the shopping malls will take over sales of all local goods including food stuffs known for the traditional market places (like Iddo, Ketu, Mile 12 and others in Lagos).
Four; Again, the final disappearance of traditional markets which are still thriving along the streets across the country will be when states governments will ban street trading as part of drives to consummate the dream of mega cities. At this point, traffic will, instead of moving to the traditional markets, go to e-Commerce venues and shopping malls which by then are already selling everything sold at the traditional markets.
Five; Currently, not up to 10 per cent of e-Commerce and digitally driven shopping malls in Nigeria is owned by Nigerians, but mainly foreign investors from EU, US, Lebanon, Middle East and others.
These findings by BHERT have been supported by report from the Economist Intelligence Unit (EIU). Which recently revealed that on issues of high business environment opportunity potential, Nigeria is in pole position to take advantage of the Africa region’s e-commerce potential projected to reach $50 – $75 billion within the next 5-10 years.
