Nigeria: African Powers Of Retailing – New Horizons For Growth

Last Updated: 7 December 2015
Article by André Dennis and Dylan Piatti

Most Read Contributor in Nigeria, October 2018


Welcome to the first edition of our African Powers of Retailing report, which identifies the Top 25 listed African Retailers by revenue. Its methodology is based on our annual Global Powers of Retailing report which has been showcasing the changing global retail landscape for over 10 years.

The report is the first in an annual series where we track the progress of the top African retail performers on the continent. We have set out to provide a comparative macro-view of African-based (or 'home grown') listed companies whose core business is retail. African-listed subsidiaries of large global retailers are included as individual entities, while we have chosen not to focus on foreign multi national companies with operations in Africa. The data unearths some insights into the regional retail players, their successes and some of their stories. And most importantly, we believe that it opens up conversation and stimulates robust debate around business model adaption, innovation and strategic decision making when it comes to retail in Africa.

The African market is diverse, complex, interesting, and characterised more by informal than formal retail. The rising middle class is however contributing to the modernisation of retailing and greater consumer market opportunities. Moreover, Africa has become a laboratory for experimentation in mobile and eCommerce, and presents a challenging opportunity. Many African economies are transitioning towards consumption driven markets which is, to some degree, reflected in the country retail contributions to GDP where both East and West Africa have 10 countries with retail revenue contributions of greater than 50%.

The natural link between the retail opportunity and understanding the consumer is illustrated in our recent report – The Deloitte Consumer Review: Africa: A 21st Century view. It highlights 5 key pillars of the consumer opportunity in Africa: the rise of the middle class, exponential population growth, the dominance of youth, rapid urbanisation, and fast adoption of digital technologies.

While our top 25 retailers are concentrated in South Africa, we are observing the emergence of companies such as Zambeef (Zambia), Choppies (Botswana), and Société Magasin Général (Tunisia) as some of the fastest growing on the continent. The fastest growing 10 retailers also have a wide geographic presence with an average country presence in 8 countries and an average store count of more than 900.

Although still in its infancy, the African digital evolution is a promising prospect for retailers with the eCommerce market expected to be worth approximately US$50 billion by 2018 – some of Africa's most successful emerging eCommerce businesses originated in Nigeria and have expanded from there across the continent. As a result, we have taken a brief look at some top African eCommerce players (e-retailers) and the landscape that the likes of Konga, Jumia, Yuppiechef, takealot and Bidorbuy are playing in. International retailer interest in Africa also appears to be increasing with early stage retail development representing significant potential as retail chains develop, gain economies of scale, and food safety and higher store standards become embedded in shopper expectations.

The emerging importance of and increasing competition in forecourt retailing is notable in Southern Africa. However, we are keen to track how this further develops on the continent as the forecourt is increasingly becoming a central location for the consumer, especially beyond major centres.

The barriers to retail success mentioned in the report mirror many current views, and include a shortage of high-end retail space, infrastructure issues, political instability and currency challenges. They are however predominantly manmade, and with increasing investments in Africa, can be overcome – the question is, how long will it take? It appears some key players on the continent are considering this 'timing' to such an extent that they are exploring additional market investments outside the continent – this includes retailers such as The Foschini Group, Shoprite Holdings, and the SPAR Group – looking as far as Europe and Asia Pacific. For both international and African companies seeking to invest on the continent the opportunities clearly exist and; there are local players to partner with who know the markets, understand its cultures, and speak the languages. If common ground can be found, a combination of international expertise together with local knowledge might be a successful formula for ongoing retail growth in Africa.


The study is intended to provide a reflection of market dynamics, the African players and their impact on the African retailing industry over a period of time.

Company inclusion criteria

Retail companies based in Africa and listed on the continent were included in the top 25 African powers of retailing, based on their non-auto retail revenue for fiscal year 2013 (encompassing fiscal years ended through June 2014).

African-listed subsidiaries of large global retailers are included as individual entities in this report, and it is aimed at identifying those listed companies that one could consider "African" or "Local". We have highlighted some notable examples of exclusions in the appendix which are a result of this methodology.

To be included on the list, a company must derive the majority of its revenue from retailing, and retailing activity should form its core business. Private equity and other investment firms are not considered as retail entities in this report – only the individual operating companies. Note that Angola and Ethiopia do not have stock exchanges and therefore retail companies based in these countries were not included.

Retail trade comprises establishments that are engaged in the sale of merchandise, generally in small quantities to the general public, and the rendering of services incidental to the sale of merchandise (e.g. delivery, installation, maintenance, repair, alterations). The revenue derived from such service activities is included in the African powers calculation of retail revenue.

Food service companies and restaurants are not included in this list, as they are generally considered to be part of the leisure and hospitality sector of the economy. Further to this, motor vehicle dealers are excluded along with retailers that derive the majority of their retail revenue from the sale of motor fuel, as they are considered to be primarily petrol stations.

The study is intended to provide a reflection of market dynamics, the African players and their impact on the African retailing industry over a period of time. As a result of these factors, growth rates for individual companies may not correspond with other published results.

Data collection and methodology

Each of the top 25 companies were analysed on key parameters such as financials, core and ancillary retail sectors, geographic presence, store formats and store footprint. The key financials collated were group revenue, retail revenue, net profit margins and return on assets. Group revenue reflects the consolidated net revenue of a retailer's parent company, whether or not that company itself is primarily a retailer. The retail revenue figures in this report reflect only the retail portion of the company's consolidated net revenue. As a result, they may reflect adjustments to reported revenue figures in order to exclude non-retail operations. The retail revenue figures are converted to US$ based on the average exchange rates of the corresponding period, according to a standardised fiscal year definition.

Data referred to as fiscal 2013 will include full-year data for companies whose fiscal years ended between 1 July 2013 and 30 June 2014. Y-o-y retail revenue growth, CAGR retail revenue, net profit margins and return on assets were calculated based on company-reported currency figures. The broad categories of retail sectors and store formats considered are given in the Appendix at the end of this report.

For eCommerce companies, retail revenue includes only direct business to consumer (B2C) sales where the company is the seller on record. It excludes the sales of third-party sellers as well as third-party seller fees and commissions.

Retail revenue includes the following components:

  • Food service sales if sold as a merchandise offering inside retail stores or if the restaurants are located within the company's stores
  • Franchise or licence fees, royalties and commissions related to retail activity
  • Membership fees
  • Sales of services related to the company's retail activities, such as alterations, repairs, maintenance and installations
  • Wholesale sales to affiliate or member stores, including franchise stores
  • Other miscellaneous revenue, unless it relates to a specific non-retail business segment

Financial information used for each company in a given year is based on the company financial reports. Where a company may have restated prior-year results to reflect a change in its operations or as a result of an accounting change, such restatements are not reflected in this data.

To read this Report in full, please click here.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

In association with
Related Topics
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions