The head of innovation, growth and business transformation at FoodCo Nigeria Limited, Funmi Aiyepeku, has said that the brick-and-mortar model remains indispensable for Retail expansion in Nigeria due to its assurance of quality, reliability, and ability to create personalised customer experiences. The country’s consumer goods market relies heavily on the retail segment to drive Economic Growth and ensure its sustainability. This physical storefront is vital in supporting the market and boosting the economy. Also, brick-and-mortar retail often goes unnoticed for its ability to impact the overall economy.
According to Aiyepeku, by influencing various sectors like Construction, Real Estate, and Information and communication Technology (ICT), it has the power to generate many job opportunities. She stated that a FoodCo store has a wide range of employees with different roles, such as managers, cashiers, sales staff, Information Technology (IT) support, cleaning, security, and inventory personnel. She further noted that the Investment in talent acquisition and management reaches a level when considering the combined total of stores and corporate positions across various departments, such as management, legal, and human resources (HR).
Their growth embraces digitalisation and blending physical shopping.
Meanwhile, FoodCo was founded in 1982 as a small market specialising in fresh produce. Since then, the company has expanded its reach to include retail, fast food, production, and entertainment. It has established a network of 21 outlets in Oyo, Lagos, and Ogun States, making it the leading supermarket chain brand in the Southwest region, excluding Lagos. Recognising the increasing impact of online shopping on the retail industry, Aiyepeku stressed the importance of digitalisation as a powerful tool that empowers traditional retailers to expand their operations, enhance efficiency and customer service, and create opportunities for further expansion.
She noted that the shift towards digitalisation, once seen as a threat to traditional brick-and-mortar stores, has now transformed into a powerful force driving growth within the industry, particularly in light of the pandemic. This transformation has created the Phygital trend, a retail blend of physical and digital elements. Phygital experiences allow consumers to merge online and in-store interactions, offering a more immersive and convenient shopping journey. This trend redefines retail, enhances customer engagement, and bridges the gap between digital convenience and in-person experiences.
Online shopping platforms allow customers to check and compare prices.
As consumers increasingly prioritise technology in their interactions with brands, adapting to this trend is essential for retailers. Aiyepeku emphasises that the modern shopping journey often begins online, where customers can check product availability, compare prices, and read reviews. This digital-first approach lets shoppers make informed decisions before visiting a physical store for product inspection and pick-up. By integrating online and in-store experiences, retailers can meet the developed expectations of tech-savvy customers, offering a seamless and convenient shopping experience that aligns with their preferences.
On the other hand, conventional stores play a vital role in boosting the community’s Economy through support for small businesses and building a vibrant community atmosphere that enhances the urban environment. Retail hubs are frequently anchored by these stores, creating lively centres where social interactions and economic activity thrive. People coming together for shopping, dining, and socialising create vibrant community hubs that celebrate local Culture and promote interaction. Retail establishments in these areas encourage additional funding, boost neighbourhood revival, and enhance the area’s attractiveness to locals and tourists.
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However, physical stores in the country face challenges, such as inadequate infrastructure, unreliable electricity, and complicated transportation, all leading to increased expenses and impeding progress. Retailers often face challenges such as spending money on generators and other backup power options, dealing with inconsistent transportation systems, and trying to keep supply chains running smoothly. In order to succeed, retailers need to embrace new and creative methods, like using technology to improve inventory management and make their operations more efficient. Taking the initiative to tackle these challenges head-on will allow brick-and-mortar stores to continue making economic impacts across the country amidst the ever-changing market landscape.