At the backdrop of economic hardship in Nigeria, supermarket owners under the aegis of Retail Council of Nigeria (RCN) and National Association of Supermarket Operators of Nigeria (NASON) have said that volume of retail sales in the country has declined by 50 percent in the past one year.
A trustee of RCN/NASON, Mr. Haresh Keswani, who is also the Group Managing Director of SPAR Nigeria, disclosed this at a media briefing after a Stakeholders Meeting with the Federal Competition and Consumer Protection Commission (FCCPC) in Lagos.
"The volume of goods in retail sales in Nigeria has gone down by 50 percent. Though, the value has gone up due to the depreciation of the Naira and high inflation rate. But the high value is not the real economic indicator of growth," he stated.
Keswani further said that businesses are struggling in Nigeria because the cost of compliance is very high.
His words: "As you know, the current retail is the second generation. The first generation died many years ago in the brands of Kingsway, UTC and all that.
"And the second generation retails, which are several brands, built over many years, are also currently struggling to stay in business. And you all know the reason why they are struggling. Because being compliant in Nigeria is expensive.
"To pay salaries on time, to make sure you pay your taxes, you pay your power energy bills and you follow the rules is an expensive proposition.
We all here are law-abiding companies and we continue to be focused on the consumer as FCCPC is equally focused on. We are here together to deliberate that there are four pillars to retail.
"The journey of a product getting to the consumer is not just from a retailer to the consumer. Retailers are not brand owners. Retailers do not manufacture most products.
"Maybe in case they do have a bakery or do something like that, but it's insignificant. Retailers are just representatives of various brands. These brands could be local, could be imported.
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"And most retailers buy through distributors who again represent the brand. The whole idea is to sit down and work on the value chain. Let's understand who takes what responsibility.
"While the responsibility of the manufacturer on the quality, our responsibility as retailers lies with how well we display our products. And what kind of environment we create for the consumer and the quality of customer service we give. And then lies also the responsibility of the consumer."
