Do You Think Opening A Big Size Supermarket Will Sell In Nigeria

I own few millons. I was thinking of starting a supermarket business in Nigeria. I don't mean a kiosk i mean a real supermarket like Tesco or 4 sake of American readers Walmart. My contact in Nigeria believes a cyber cafe would also be nice so he wants to do the two as his major is in computers. Thereby reducing the size of the supermarket. I also have reserves now expecially since Harrods amongst a few others are coming down to Nigeria-Calabar to be precise.

Since the consumers will be my fellow Nigerians with the first store to open in Lagos then with success hoping to move to Abeokuta then Abuja and so on, I decided to post these question and find out what you guys think. Please speak your mind. I really don't mind what you say even if you think the comment is stupid.

Its quite a good idea but there is already a big one somewhere in Lekki. Not sure what it is called and I think Nigerians welcomed it. So I guess you'll to have differentiate yours from the existing one to ensure that you get customers.

thanks guys didn't know about the one in lekki that's why i wanted to visit home later this year. Yeah it would be the size of old Tescos before they were all extended. If it's successful then maybe a restaurant will go in. The prices of goods will be very competitive and some of the goods sold will be from here like microwaves,mobile phones,computer accessories etc.

I'll visit and find out keep posting thanks.

Please come to Port Harcourt, you will make it big time.

I think your idea is a good one. I wouldn't regard the existing stores as competition but rather use them a case study to build an effective business model. Your business model and management is all that really matters for now as big Supermarket business in Nigeria is still virgin.

@otokx.

I'll visit port harcourt and see but i believe lagos will be the best place to start but i'll keep an open mind until i visit. Plus i have no contact in port since i don't stay in nigeria permanently. Although i have heard a lot of good things about port harcourt. It's time for me to shut up. I tend to ramble a lot i'm still doing it ain't i . okay i'll stop now.

Tinard

Just go ahead and throw you money out the window. You will need more than a few Millions, and the business will flop. Think more service oriented rather than a supermarket in Lagos. Hotel or something in the Liesure industry, would be a better investment.

Sure why not going to open my soon but ensure it is at strategic point, where people can easily see it. The sky is the limit. wishing you the best of luck

tinard,

I don't know anything about tesco, but if what I have heard is true, then it is the walmart of the UK. If true, it would be a good idea under the following conditions:

- u hv your light and water needs ironed out (that includes fuel for at least 3 stand-by generators)

- ur security is down pat (that includes cameras to monitor thieves, not only from outside but within as well.

- u r sure of a steady supply of goods

- u r willing to deal with the political (aka union) wrangling associated with those who have bad-belle for anyone "coming from abroad to take over from us"

You mentioned a "few millions". Is this pounds, euro or $$? I ask cos personally, if I were to do a thing like this, I am thinking $20million minimum. I say "minimum" cos I wouldn't want to be just another supermarket. I would want to go big time.

Finally, remember, all biz is subject to risk. If you fail though, don't take it personally but as an experience to learn from, as a road to future success. Just don't make too many of them

just make sure you do a solid feasibility studies man. A few millions, regardless of currency, is no joke.

I hope this helps.

Well with the opening of PALMS shopping mall / SHOPPRITE in Lagos, it shows that Nigerians (or should i say Lagosians) are ready for mega supermarkets like walmarts.

Your idea about moving to Abeokuta before Abuja is where you baffle me. With the sort of investment you intend to put into this, the economy of Abeokuta may not be ready yet for this (Although the town is fast growing).

I think you should Start this way Lagos-Abuja-Abeokuta

thakns guys nice to see people are accepting of the idea. Plans are underway to make it come true. My2cents u amaze me, i'd like to believe that u just want to know how much i have to spend because if i had $20 million dollars then i'd start real estate in England or a chain of stores immediately. More like in Naira.

Keep posting guys thanks for the comments.

The force, I wasn't sure coz i hadly visit Abuja and i'm informed they have some but i'll make sure to research the area very well now.

There is a huge demand for variety and discount malls in Nigeria.
The lagos market alone has large unaddressed market and i once worked on setting up such two years ago but stalled due to funding.
Aside the large unaddressed market, you can introduce innovative processes and offers to the market place.
In a particular area in Lagos, i know about 5 discount shops that are lowly capitalised but their turnover is huge!
You can harly get it wrong in this venture.harrolds and walmarts coming to calabar is just for holiday shopping.people want to shop regularly from outlets not too far from them.

having a hotspot/cafe there is also a good income centre and im sure there are several several income centres you can have at each location. you can have this in every state capital and they will all be profitable. However, expect 70% of your income from lagos state.

I can go on and on, but my major aim is to encourage you as you will definitely create wealth and reduce employment with this venture

I too was thinking of investing in Nigeria once I get my hands on my trust funds. But I have to wait till I turn 18. I was thinking about building a private college and offering free scholarships. or build low income housing for the poor. or get my grandfather's company to open branches in lagos.

man i don't understand what you mean by few million bt if you are ready for real super market biz. i think you shouldn't be talking about few millions. we already have large ones.

why don't you look for more partners so you come together and make it real big, trust me you will as well make big money.

i stay in Port Harcourt and i'm a regular customer to "Happy Bite Super Market Complex" and i can tell you these people makes real cash, just a department like the, Bakery makes over five hundred thousand naira daily. this is no joke man, ok i'll make a rough cal. for you. in a particular weekend after taking my lunch i decided to spend some time to observe the customer turn-up and i was surprise to count over 650 custormers in one hour majority buying more than one bread and bakery products like cakes etc. and a bread cost 220 Naira, multiplying it by 650 = 143000 Naira in 1 hr, multiply by number of operational hr in a day, check out naaa.

if you are really serious look for more guys come in fulltime and invest and you'll find out you are done, you know now Naija likes forming it's just to make it a fun place for every body(i mean for all classes and age). think about it, good luck man

I was trying to be modest with the few millions. As i'm trying not to mention the real amount i have i'll say over the course of the first few years of the business i have more than #10 million naira to spend. And about your calac about how much they make the revenue is great no question about that. It's the profits which is why i'm trying to get in contact with farmers, bakers and other small business and see if they can come up with something. I'm trying to come up several USPs-Unique selling point.

Most of the supermarkets still have nothing in them. I want to answer everyone's quetions. If you want more details or you want to help by filling a questionnaire or have an idea of what you want in a superstore in nigeria but can't seem to find, contact me on tinard@googlemail.com.
Remember you can never do too much research and since i'm new in the biz and i don't reside in Nigeria permenently things are a little bit more difficult especially trying to buy a bar code reader machine so stocktake, supplies and demand is easier to manage. We don't want to run out of stocks now do we and we don't want thieves to ruin the place for us. Abi we be Nigerians now and we know each other.

Keep posting guys the contribution is great 10ks and Seun thanks for putting me on the main page.Momney it's nice to see another united supporter.

I think you should read about big supermarkets in different countries and their strategies. In Kenya, the major guys are Uchumi and Nakumatt, and they are really big, very big and well patronised, if not better than our Shoprite in Lekki.

The field is no longer a virgin field, there used to be Leventis and UAC and some smaller ones. We still have Pack n shop though and some electronic malls like Mega Plaza. Cash n Carry is not too bad too.

10 mill pounds is not too bad for such a huge investment, but if security is top priority, you will definitely make it. A Mega City is most welcome for such a business, we are yet to have one anyway i mean a 24-hour city. Abuja and Lagos are moving towards that or may be Port Harcourt and Kaduna/Kano.

Please do your research and read books on those big places as well. I may be wrong to say we are not ripe for that, but please do more research.

emm 1o million pounds or dollars for a supermarket or yall mean to have another superman exiting or something in nigeria! damn u must be joking.

im sure emm thy kingdom come can have a place in nigeria naira! na waa ooo!

my people make una dey visit home oooo! yeye ha yall need to see the house my aunty just built in nigeria! what a crib in naira now forget MTV Base for a second right!

huh 

soldier mentality ! yes go brov its our pride!


god bless one nigeria!

u said lagos right?

well come to Nigeria first and see OSATA (its in ikeja), PARK N SHOP(victoria island and ikeja), GOODIES(victoria island and apapa) BIG TREAT same as HAPPY BITE, VALUEMART,MEGA PLAZA


The palms on the other had is a MALL the supermarket there is SHOPRITE which is more like Tescos the others above are not as large and they deal with electronics and other stuff

the most important issue about it is space. THE PALMS MALL was built from scratch and remeber they rent out shops so they got their money back. If you have jsut 10 million then you cant build from scratch you may have to rent and that means paying at least 3 years advance, lagosian like effizi so the decor has to cool or else the clientele that can keep it runjing wont come. then you need a place with parking space, you have to think of security and generators. so its capital intensive.


location can be anywhere but bear in mind SURULERE,IKEJA, IKOYI the island is already cramped

so to your question it would sell
like the others said Portharcourt Abuja(rent is expensive though) even IBADAN and ILORIN cos i've been to some large supermarkets there and their prices are good too

No, it wont, because Nigerians are not shopaholics and also because its not our in our lifestyle to be hanging out in shopping malls.

I said i had more than #10 million never really said how much it was so i don't give too much away. I'm beginning to think about buying a land in Ikorodu and build it from scrarch there. Ikorodu seems to be developing and it covers so many area. The place there is not too expensive and it will cover the 4th mainland bridge when it's completed.

I hnow about some of those especially SHOPRITE. I read about it in the punch earlier this year. It is a south-african company right? Mine is going to be completely different from all those already in Nigeria. The main problem i'm having is where to start it as in location of first store. I have the dimentions and the design. It's just a question of a place that covers the best areas and where it will pick up and compete with the already installed ones and still have the security i want.

Tinard

You are just blowing hot air. You need to rethink you business plan.

hello tinard
you ask if a large supermarket will thrieve in nigeria? I think yes
but you need to have a very definite idea of what you will sell and who you will target
Like others have said your security needs to be your number one priority
good luck

Tinard from what i read you are a man with vision ,i was thinking of that too .Business rules applies still ,get in touch ,
Location ,USP and strategy counts

Khali you are a new member you said get in touch with no address on either your profile or leave it in your message.

Thanks guys for your support and old shame i understand why you believe i'm just blowing hot air, but it is definitely
true it will open next year by the grace of the Almighty as soon as everything is completed.

sur it will, I just opened one on Monday 4th sept. 06. in my opinion it is of high standard n the location is super.

@helma

where did you open urs?
in nigeria?

glad that smone finally asked! yes I opened mine in Lagos. it's doin quite well

@helma: congratulations. Can you post picture of your supermarket? Thanks!

It will be a great idea only if you can sell at a price not excessively higher than those in the open market because most Nigerians don't mind going to Alaba for their electronics or Mandilas for their clothing. You may have to develop contacts in Asia (China to be specific) so they can supply you at large quantities and cheaper prices than those guys who sell in the open market. You can also decide to sell to a specific target market who aren't price sensitive like Shop-Rite in Lekki or Mega Plaza.

Thanks donzman and all the others that have contributed to this thread. As explained earlier plans are underway and hopefully it will open in the new year.

@ khali u said get in touch but left no mode of contact

@helma where in Lagos what do you offer and ho good was the first few months.

Plans will move faster once i visit this xmas and see Nigerians at their busiest time of the year. All i need to know now is Nigeria's take on the environment. Every country is trying to go green and this is having a massive effect on supermarkets. What's Nigeria doing to supermarkets or is it same old same old?

Please, don't throw your hard e