Stores that usually provide a variety of electronics, apparel, and other non-grocery products are known as variety stores. These stores have proved to be totally convenient for all the busy consumers who seek one-stop shops for their needs.
The research report titled, “Variety Stores in Nigeria” offers significant insights into the major trends and developments that are driving the variety stores industry in Nigeria. It well examines all the retail channels such that sector insights are given to the users. The channels in such industry mainly caters to- hypermarkets, supermarkets, discounters, convenience stores, mixed retailers, health and beauty retailers, clothing and footwear retailers, furniture and furnishing stores, DIY and hardware stores, durable goods retailers, leisure and personal goods retailers.
The report very well highlights the industry trends by producing: market sizes (historic and forecasts), company shares, brand shares and distribution data. Also, it carries out an analysis of the major retailers related to this industry to give a true and transparent image to the users.
In Nigeria, the advent of variety stores took place back in 2015 and since then it has been in its mushrooming stage where it has a lot of scope to develop further via rising awareness of variety stores and related expansion of these outlets in most urban cities in order to ultimately enlarge the consumer base by offering reasonable prices to them.
Evolving number of young middle-income consumers has been witnessed as a constant market driver for these modern store-based retailers, as they relish a wide range of sophisticated electronics, apparel and appliances which have long managed to appeal them. Furthermore, these stores are expected to continue growing in the years to proceed with rising income levels coupled with ongoing trends of urbanization.
Mainly there are two variety stores in this channel namely, Yudala and Addiba which have been observed to be in their early stages of development and Yudala has managed to supersede this industry having a nationwide reach since its outlets multiplied rapidly to 21 from 8 in just two years. While, Addiba came into the industry in 2016, and possesses only 4 outlets currently and is therefore striving to gain a good portion of market share and for this share gaining, it has been lately noticed to offer high-quality products, particularly electronics and appliances that are trendy amongst the young population such that customers start believing in the brand with upcoming advances in technology.
In the coming years, these two brands are projected to witness growth since they will persist to provide affordable products which will undoubtedly suit the vast majority of Nigerians who are frugal in nature. For their success, they have very well identified the potential within smaller-format modern retailers that will be able to provide great deals of bargains to the consumers, especially in harsh economic times such that the industry also does not face a situation where it has to incur losses.
It is anticipated that the sales revenue from such stores will register an optimistic growth in the coming years since major players in this channel are expected to begin their ventures as pure internet retailers and thereby it is foreseen that an amplification of the internet retailing operations is highly likely to supersede the existing physical stores; generating massive revenues at the same time.
KONGA has been noticed to be the largest online mall in Nigeria, with which Yudala has lately made an official agreement for a merger of operations which is expected to rather result in the biggest organized retail and e-marketplace on the African continent, five years from now. This strategic decision is anticipated to cause both companies leverage on the combined strengths of both platforms, and is further expected to embolden the scope of variety stores in Nigeria and end up delivering more valuable services to the Nigerian customers as well as merchants. Hence, efficiency of this merger would ultimately generate the best shopping experience imaginable for the Nigerians.
On a whole, the range of products and solutions on offer are expected to keep on booming by simultaneously providing the customers and merchants with an access to a massive variety of guaranteed quality offerings coupled with enhanced payment methods and thus, this industry will surely flourish with ongoing innovations and developments as the years roll by.
To know more about the research report:
Ankur Gupta, Head Marketing & Communications