With more than 600,000 outlets nationwide in 2021, traditional grocery retailers dominate grocery retail in Nigeria. However, this figure declined throughout the review period, due in large part to the expansion of modern grocery retail outlets, and COVID-19 accelerated this trend.
In the aftermath of COVID-19, a growing number of traditional retailers are embracing mobile payments in line with a government recommendation to provide the option of contactless transactions to consumers. Many Nigerians do not have a bank account, let alone a payment card, but a growing number of them have smartphones, and mobile internet access is steadily becoming more affordable.
With logistics remaining one of the biggest challenges for traditional grocery retailers, a growing number of fintech companies are developing digital platforms to assist traditional grocery retailers in their operations. Such initiatives have been receiving support from the wider investment community.
Traditional grocery retailers will continue to dominate the grocery retailing landscape in Nigeria in the forecast period. Their proximity to consumers’ homes, their value offerings in the form of smaller packaging formats, as well as a growing interest from fintech organisations that seek to aid them in digitalising their operations will all play a role in supporting the sales channel position.
The evolution of payment systems in Nigeria will continue to transform the way traditional grocery retailers operate in Nigeria. This will be aided by government initiatives to move the country to becoming a cashless society.
During the review period, modern grocery retailers such as Jara Group and Market Square expanded their store network quite aggressively, opening stores in upmarket neighbourhoods and peripheral areas. Such moves could threaten the existence of traditional grocery retailers in these areas, as modern grocery retailers such as supermarkets tend to offer a more diversified range of products at lower prices.
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Understand the latest market trends and future growth opportunities for the Traditional Grocery Retailers industry in Nigeria with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Traditional Grocery Retailers industry in Nigeria, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
Traditional grocery retailing is the aggregation of those channels that are invariably non-chained and are, therefore, owned by families and/or run on an individual basis. For Euromonitor traditional grocery retailing is the aggregation of three channels: Independent Small Grocers, Food/Drink/Tobacco Specialists and Other Grocery Retailers. While there can be modern (i.e. chained) food/drink/tobacco specialists or other grocery retailers, due to the store's presence in the channel, these stores are still considered as traditional for Euromonitor International.See All of Our Definitions
This report originates from Passport, our Traditional Grocery Retailers research and analysis database.
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