Foreign Megastores and the Nigerian Economy: A Study of Shoprite

Abstract

This paper examines the phenomenon of foreign megastores in Nigeria. It offers a historical analysis of the factors responsible for their presence, emerging trends engendered by foreign megastores within the Nigerian market and the implications of such presence for the Nigerian economy. It demonstrates that foreign megastores have profoundly affected the economy and social environment within Nigeria. It adopts as a model of analysis the South African retail store, Shoprite and observes how it is progressively influencing consumer behaviour, expanding the influence of retailers and directing financial flows into Nigeria. Among other things, Shoprite offers consumers the luxury of spacious well organized parking lots, clean environments, a friendly staff and competitive prices to mention a few. Observers of the rapid expansion of Shoprite agree that its presence in Nigeria means that roadside sellers of bread, vegetables and meat would be adversely affected in a country where retailing is largely informal; it thus threatens existing market structures. It also significantly contributes to the fast rising level of health challenges in Nigeria. To this effect, the study set out to test the impact of Shoprite as a foreign megastore on Nigeria’s economy and the data obtained through interviews and from the distribution of questionnaires, and analyzed with the aid of th