ShopRite Exit: Naira Devaluation, Overhead, And Other Allied Matters

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Some weeks ago, it was widely reported that every household in Nigeria received palliative from the government. So, why are you shocked that ShopRite wants to leave the Nigerian market? Oddity is no longer a news element as far as Nigeria is concerned.

The news in circulation today is that Africa’s biggest grocery store, Shoprite, plans to exit the Nigerian Market. The question is why would Shoprite leave Nigeria? I do not see a competition-driven exit. No retail store matches the shoe-size of Shoprite.

The grocery market usually thrives on volumes and quantities. Ask an average trader in Cemetry Market, ABA, he/she will tell you. Once, the volumes plunge, your profit margin is affected. In fact, you are already under pressure. There are other factors too which are not even captured in this calculation – Logistics and Personal. Running a supermarket successfully isn’t an easy task. The overhead cost is simply overwhelming.

At this point, it’s very easy to cast blames on Covid-19. Even the Ministry of Transport said Lagos-Ibadan Expressway construction would have been completed if not for the Coronavirus pandemic.

However, if does ShopRite exit, it’s not a big deal. It is not a big deal because ShopRite is not Google, IBM, or even Dangote Group, to mention but a few. Many Nigerian firms are ready to do whatever thing they have been doing for the past 15 years.

I have also read many cryptic posts on this reported exit. Folks, there is no doubt that Nigeria’s business environment is so unfriendly. However, there are many damnable and wacky happenings in the country that could be used as a tool to discredit the present administration. Not just this ShopRite saga.

The truth remains that, there is no cause for alarm. If Nike closes shop, let’s switch to Puma. Now is the time to buy and consume Nigerian products if we must grow our economy and strengthen the ever-depreciating Naira. ‬

NIGERIAN GOVERNMENT must wake up from its slumber. The continued devaluation of Nigeria’s currency needs an immediate attention. NAIRA is worthless right now! That alone could whipsaw any foreign establishment in Nigeria.

Maybe, it is time to have a National Census, our 200 million population seems to be a hype, we are nowhere.

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