Retail Mall Operations

African cities have been growing at the fastest rate in the world. The average annual rate of urban population growth in the Middle East and Africa between 2003 and 2008 was 3.2%, compared to an annual average global rate of 2.1% and 2.6% in Asia Pacific.

In 2008 the retail climate in Nigeria was buoyant, and although prospects were dimmed at the beginning of the year as global demand for oil fell, with the recovery of the oil industry the market is regaining its bounce (the most recent forecast from the IMF has put real GDP growth at 5% in 2010, after dipping to 2.9% in 2009). The blip may have caused concern, but will do little to halt the ongoing development of the retail landscape.

Chart - Strong growth trend to 2014 in Nigeria

Euromonitor International Growth calculated using value at current prices in US$ at fixed 2009 exchange rates. Urbanisation trend offers retail opportunity

Several factors are now coming together to create the ideal climate for the emergence of modern retail urbanisation, rising incomes and the increasing sophistication of the retail offer itself. Growing urbanisation gives retail developments the opportunity to access larger clusters of consumers and the percentage is set to rise to 55% by 2014. A combination of revenue from the country's natural resources, increased foreign direct investment and improved economic management by the government has driven average growth of Nigeria's GDP of 6.5% over 2004-2008 according to the World Bank, resulting in the emergence of a middle- class. The market is forecast to be worth over US$27 billion by 2014.

In order to target this new, more sophisticated and higher-income consumer, Retail Development &Investment Co. Ltd will be investing in the development of eleven (11) retail hypermarket and a chain of convenience stores over the next 5 years in Nigeria alone and then gradually expanding into the Africa region. Our retailing concept will be adapted uniquely to suit local consumer tastes by stocking items, particularly groceries that appeal to locals. In aligning with international retail best practices, we are currently working with renowned retail consultants in order to assist with store organization, planning, retail performance management, category management, retail best practices and strategy.

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