A new Shopping mall has berthed in the Apapa area of Lagos which is changing the face of retail in Nigeria’s premier port city. Before now residents and workers in Apapa which is home to an estimated 522,384 people, according to data from the state government website had been without a world class retail outlet to serve their shopping and relaxing needs.
This has however changed because shoppers in Apapa and its environs are having their shopping experiences enhanced as Apapa Shopping Mall, designed and developed by Top Services Limited, and located on park lane; Apapa Lagos has opened with 41 retail sales outlets with 37 shops committed.
The mall is currently playing host to top brands from both within and outside the shores of the country. Chairman of Top services Ltd, the company that developed the mall Chief Tokunbo Omisore told BusinessDay that the mall is available to different classes of clients ranging from local shops to top brands, with some dedicated space as cinema halls for cinema lovers within the community to enjoy the very best of movies.
Business Day’s visit to the mall shows that, some brands such as Shoprite, Filmhouse, Cash & Carry, MRP (formerly Mr Price), Pep store, Samsung, Lifemate furniture, Bheerhugz, Kobis Restaurant, Main Street Bank, Montaigne, Etisalat, Airtel etc had already secured some space in the mall.
With a huge consumer market, growing economy and increasingly urbanised population base, Nigeria represents one of the biggest opportunities for the retail sector in Africa. Currently, more than 80m of Nigeria’s 170m citizens live in or close to urban areas, a figure that is set to rise in coming years as the economy moves away from its traditional rural base.
According to a report released in July by research firm McKinsey Global Institute,Nigeria’s consumption could increase to $1.4trn a year by 2030, from its present level of $388bn a year, an average annual increase of 8 percent.
This shift to the cities, and the rise of a broader middle class, represents a vast pool of customers for retailers that is part of what Apapa mall is trying to achieve with its recent opening in one of Lagos’ major urban core.
The vision for bringing the Mall to Apapa is to provide a one stop shopping Centre where residents within Apapa and its environs can do or carry out all their shopping activities.
The mall has a Shoprite retail supermarket selling virtually all brands of food, beverage & household items, Bheerhugz lounge bar and the Filmhouse providing relaxation & entertainment.
The mall has a beauty salon such as Evoke to add to the looks of both men and Women just to mention but a few.
With the one stop shopping experience creating the ambience and conducive atmosphere, the lifestyle or culture of the shoppers would be impacted upon positively.
The mall has a car park that is capable of containing about 420 cars at a time customers are assured of their safety and that of their properties, Omisore explained.
The Apapa Mall is already recording a huge success as shoppers troop in daily en mass to have access to the ambiance and wide variety of available shops.
This rise in consumption is being driven by higher income levels, with the McKinsey report forecasting 35m Nigerian households to be earning more than $7500 a year by 2030, greatly expanding the middle-income bracket.
This increased affluence is expected to result in 7.1 percent annual growth in sales of food and non-food consumer goods. The rise of non-food goods such as personal care products will record an even sharper rate of growth, with sales rising by 10.6 percent a year through to 2030, compared to 6.8 percent for food.
Apapa as a community in the past boasted of shopping, entertainment and relaxation centres scattered around Apapa which are almost no more in existence. With the coming of the Apapa Mall, the activities Apapa was known for are now being revived.
This is particularly important for retailers still looking to set up shop at the mall.
Another report prepared by international management consultancy A T Kearney earlier this year tipped Nigeria, as offering the best retail investment opportunities in Africa.
Kearney’s African Retail Development Index ranked Nigeria second overall for retail potential, saying it had rapidly evolving retail dynamics and demographics, with many other global retailers planning to set up shop.
“There is no time to spare entering these markets before these first movers gain an advantage as they establish their brands early and secure loyal customer bases,” said the report.
Nigeria, also offer some of the best opportunities for retailers looking to invest in Africa, Rand Merchant Bank said in September. Apapa’s commercial and residential mix of people ensures that there is a high level of disposable income and business opportunity for those retailers who have a presence at the mall.
Malls to Nigerians are much more than a shopping experience these days, so outside the normal shopping experience, the Apapa Mall provides the shoppers opportunity to catch fun and being entertained.
The Mall also allows shoppers to get medical attention in shops like Healthplus & Medplus.
“In the future, it may serve as an Amusement Centre for kids who come with their parents for shopping as well as an excursion Centre for students who may want to visit the mall as a group,” Omisore told BusinessDay.
Apapa Mall and Nigeria’s changing shopping patterns As in most African markets, at present around 70 percent of all Nigerian retail sales are conducted at small shops or informal outlets, however this will likely shift increasingly in favour of larger retailers in the years to come.
McKinsey estimates the rate of sales expansion by modern format stores at 28 percent a year, a rate of growth that will gain pace as urbanisation increases Nigeria had attracted more than N205.4bn ($1.26bn) worth of investments into the retail sector in 2012 and 2013, the minister of industry, trade and investment, Olusegun Aganga, said at the end of last year.
This is a reflection of growing demand for formal shopping options, with further floor space due to come on-line by the end of 2014, both in the form of stand-alone outlets and shopping malls such as the Apapa Mall.
Approximately N2.4b was spent in bringing Apapa Malls innovative and affordable architectural development to reality.
Emeka Anichebe a shopper who was interviewed at the Mall by BusinessDay gave thumbs up to the developers and those responsible for bringing the Mall to Apapa.
“I work in Apapa from Monday to Friday although I reside in FESTAC. This Mall has greatly eased my ability to shop in a quality environment as i normally come here after work to pick up items at Shoprite and other stores for my home,” Anichebe said.
There are currently over 35 retail quality sales outlets in the mall including, Shoprite, Filmhouse, Lifemate Furniture, Cash N Carry, MRP (formerly Mr Price), Pep Store, Bheerhugz Café, Kobis Restaurant, Montaigne Place, Etisalat, Airtel, Daviva, Healthplus, Casabella, Essenza and Samsung.
Other quality retailers include, Diva House of Accessories, Medplus, Ruff N Tumble, Bussen, Evoke, Sabichi, Audacious, Accessories 2 Die 4, Suntan, Time Keepers, US Polo, Party Perfect, Cardshop, Image N Soul, Solat Telecoms, Spectranet, Sleeves, and Twice As Nice. Also present is the ATM powered by Mainstreet Bank.
Other potential International and Local brands are welcome in the Mall if at all there is any vacant shop Omisore told BusinessDay.
PATRICK ATUANYA