From the Michael Ejekam Blog: Succeeding in Nigerian Retail

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Three Tips to Make Your Nigerian Retail Venture a Win

Michael Ejekam has experience choosing the best retail ventures throughout Africa and America. His experiences have served him, the companies he has represented, and individual investors well. This has also helped Michael Ejekam become known as a thought leader in the Nigerian retail revolution, but some of the expertise comes from watching what’s happening in other parts of the world, and knowing which business strategies help businesses succeed in unique economic environments. The retail industry in Nigeria is still strong and a good opportunity for entrepreneurs, but it’s important to include the following three things into your business plan as you start your retail company.

1. Be Prepared to Stay

“Make very sure Africa is where you want to be,” advises Christo Wiese, Chairman of Shoprite Holdings. He’s South Africa’s richest man, and weathering the conditions is easier for him, but he makes a fine point. All too often, new businesses are not prepared to accept losses with their gains. There will be times when business is slow, and smart entrepreneurs allow for this in their long-term strategies. When they come unprepared to stay, they exit the market quickly.

2. Take Advantage of Ecommerce Opportunities

The people of Nigeria love online shopping,  more so than the people of other nations. Only 60% of Kenyans use the internet for shopping, and in South Africa, the number climbs to 70%, but here in Nigeria, a massive 90% of the population shops online. Throughout the world, we are seeing a unique mixture, where businesses are providing a seamless experience from online stores to their physical locations. Managing Director at Netplusdotcom, Wole Faroun, says that the key is in incorporating point of sales (POS) systems and using them. Consumers can take advantage of being things online, but they also use systems in places like the movies, when they make use of a kiosk to purchase tickets and avoid a line. There are also companies like Amazon, that operate primarily online, but are branching out into small satellite stores, to generate more awareness for the brand and so people can experience the merchandise firsthand. “When you look at point of sale holistically, and as an e-commerce player you begin to see opportunities where you were not playing before,” explains Farun, “and if you start playing in those areas, you’ll see that there’s a win.”

3. Use Locally-Sourced Goods

Forex shortages have affected retailers quite a bit, but they haven’t affected all Nigerian retailers “A lot of retailers have been able to adapt, and some that initially pulled out have come back into the market,” says Obinna Onunkwo, a co-managing partner at Purple Capital. “Those of them that had the foresight to look for local alternatives, or local producers are doing relatively well – those that were not able to make that transition are doing badly.”

Michael Ejekam understands the retail environment in Nigeria and still believes this is a good time for people to begin a business, but also adds that much of one’s success has to do with the strategy a business creates. Although these three tips may not be a comprehensive strategy for success, it’s a good start for anyone looking to get into the game right now.

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Michael Chu’di Ejekam Blog: Impact of Retail on Youth Employment

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Through the years, Michael Chu’di Ejekam has had a hand in the development of several malls throughout Nigeria and Africa as a whole. These retail spaces aren’t just a sign of a growing economy, or even of improving lifestyles for people. For Nigeria’s unemployed young workers, they may be a sign of hope. This Michael Chu’di Ejekam blog explores the unemployment issue in Nigeria and how retail just might be a key piece in solving it.

A “Society in Danger of Destruction”

Not too long ago, the president and CEO of Dangote Group in Nigeria used that phrase to describe the difficult employment situation. Aliko Dangote spoke out about the dangers associated with unemployment in a 2015 editorial, which served as an open letter to the Buhari administration. Referring to youth unemployment (up to age 34)  as “the monster that has kept our teeming youths on the fringes of human existence,” he called for the administration to “slay” it. “Our entire society is in danger of destruction unless we pay attention to this huge segment of our young and jobless global population,” he added. Around that time, youth unemployment rested around 50%, an astounding level that no doubt contributed to countless other issues throughout the country.

Retail Could Help Break the Cycle

Naturally, as the population grows, so, too, does the unemployment rate. The good news is, retail could play key role in reducing youth unemployment throughout the country. Broll Nigeria recently held a roundtable discussion called “Retail Industry: 10 Years from Now,” and the industry experts concluded that retail could be the biggest employer of youths in the coming years. Bolaji Edu, CEO of Broll Nigeria, offered further insights into the industry. “Despite a challenging environment,” he said, “Nigeria still holds promise for investors who are willing to take a long-term approach on investments.” However, the government will play a large role in whether retail continues to expand and create jobs. “The outlook for the retail sector is largely dependent on economic reforms as well as the lifting of foreign exchange restrictions,” Edu added.

So, although retail may not be a magic bullet that slays the beast, it very much could be with the right governmental procedures and policies in place. This would not only impact the Nigerian youths of today, but will build for a better future for the country overall.

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Michael Chudi Ejekam Blog: Emerging Commercial Real Estate Trends

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Michael Chudi Ejekam has been active in the commercial real estate market both in Africa and in the United States. With a core focus on selecting strong real estate investments, he’s had a hand in the creation of millions of dollars in retail space. Naturally, the real estate market in Africa is different than that of the United States, and the rest of the world for that matter, but we are seeing some global trends in how entrepreneurs are making the most of their space and paving the path to success. While the deals that Michael Chudi Ejekam helps bring to fruition are a catalyst, it’s the strategies we’re seeing implemented now that are helping businesses reach new heights in our increasingly connected world.

Shared Space

Although we’re all familiar with the model of having an anchor store or two paired with other smaller venues, one of the newest trends puts multiple retailers under a single roof in a shared space. It’s akin to a traditional market, yet in a formal retail setting. Google is one of the best-known brands to do this. The company launched an immersive shop inside Currys PC World, a London department store. The goal of the Google store was to give consumers a chance to try out Google products and truly experience them before they made a purchase. The company says they plan to open more using the same model.

Pop-Up Shops

Short-term spaces are nothing new, either, but we’re seeing more of them in the formal setting as well. While traditionally reserved for holiday or seasonal goods, and perhaps even a roadside stand could be considered the same, today’s pop-up shop is highly organized. The trend may have begun as landlords who could not fill long-term spaces agreed to short-term leases, but the concept has blossomed into certain venues only offering up retail space for short periods of time. There are now even companies that specialize in connecting landlords with tenants in a peer-to-peer marketplace. While still used for seasonal goods, pop-up shops have also become an attractive option for businesses that want to improve branding efforts or increase awareness of their normally online enterprise.

Commingling Real World and Online Experiences

Many of the big-name brands, like Target and Amazon, have started creating hybrid stores. These shops have a limited amount of merchandise, giving consumers the opportunity to hold and experience a product before they buy it. This is immensely important in the tech industry, and this is where Amazon shines. Their stores are primarily billed as bookstores, but they have Kindles and other devices, as well as classes on how to use them, so consumers feel more comfortable and familiar with their products. When shoppers don’t find the book they’re looking for in the store, seamless ordering is just a click or a tap away.

As emerging markets continue to grow, these trends throughout the world will likely come into play. Retail has come a long way, and these strategies will help usher them into entrepreneurial success.

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From the Michael Ejekam Blog: 3 Simple Ways to Go Green

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Michael Ejekam was part of the team that brought Heritage Place to fruition. As Nigeria’s first green certified commercial building, it has paved the way for other buildings and raised the standards for commercial development. The building, itself, is sleek and modern, very much befitting of the busy commercial district it serves in Lagos and most people wouldn’t realize how much thought went into incorporating green features from the start. This Michael Ejekam blog will cover three of the ways Heritage Place went green, along with some insights as to why these changes are necessary for all structures going forward.

1. Recycled Water

There are two main kinds of recycled water; graywater and brown/blackwater. The latter tends to refer to water from toilets and other dirty sources, while graywater has less impurities and comes from things like washing hands. One may also think of harvested rainwater as recycling, simply because it can be gathered from areas that don’t need it and used in areas that do. Systems that recycle rainwater and graywater are becoming commonplace in commercial structures, built in from the start. The water is cleaned and then used for things like irrigation and toilets. The obvious benefit to this is that less drinkable water is needed for a building, and consumption can drop in the neighborhood of 20-30%.

2. Building Orientation

One of the easiest things for builders to take into account is the orientation of the building. This is a passive way to provide energy efficiency and keep people inside the building more comfortable. Simply by choosing the ideal shape of the building and angling it properly, the building can naturally minimize solar exposure. Heritage Place is set up this way, which reduces the load on cooling units throughout the building, so they run more efficiently and last longer, and it also keeps people inside more comfortable, with less effort. You’ll also note that the structure of Heritage Place has multiple jaunts and awnings, which helps minimize solar exposure as well.

3. High-Efficiency Lighting

Nowadays, we all know that the type of bulb used matters. The old incandescent bulbs are energy hogs and need constant replacement. Fluorescent lighting is a better option, but beyond this, LED lighting is the best available right now. The bulbs last seemingly forever and use very little energy, saving money on power, labor, and replacements. Heritage Place took this a step further and included presence detectors, so the lighting only operates when people are active and in a room.

These are three simple things that nearly any builder can do to help create a greener building, without having to spend huge amounts of money to make it happen. Moreover, they save on the costs of maintaining the building, which seriously adds up over time.

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From the Michael Chu’di Ejekam Blog: New Lagos Mall Opened

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Michael Chu’di Ejekam has been involved in the creation of several malls, including the Ikeja City Mall and the Jabi Lake Mall, as well as the Abuja and Accra Malls. These kinds of projects are always exciting, as they show that investors have faith in the economy and they bring jobs and growth to the area. Although Michael Chu’di Ejekam was not involved in the newest mall to open in Lagos, Nigeria, it’s still good news for local residents.

The Maryland Mall is Open

Onikepo Akande, President of Lagos Chamber of Commerce and Industry (LCCI) spoke at the inauguration celebration. “It is my sincere belief that this new mall will help to expose and grow the manufacturing and commercial potential of Lagos state and by extension, the national economy,” she said. Anchored by a Shoprite store, with many other venues for entertainment, shopping, and services, the location is expected to do quite well. Many businesses are eager to take up slots in the 7,700 square metre property, including companies like Stanbis IBTC Bank and The Place restaurant. Akande gives credit to the team behind the new development, explaining, “Indeed, retail is one of the cornerstones of trading and investment, and Purple Capital, the developers of Maryland Mall, have done extremely well to give Maryland a new lease of life through this retail investment.”

It’s a Unique Structure in a High-Volume Area

The Lagos State Ministry of Transport carried out studies of the area, highlighting traffic patterns and the best way to position things. It’s estimated that 5,000 cars will pass by every single hour, which will bring people naturally to the mall throughout the normal course of their days. Unlike most structures being built today,  the Maryland Mall is built lengthwise, rather than reaching into the air. It also boasts a few unique features, such as an underground parking lot, which is the first one in the country. Developers has also included a massive 550 square metre LED screen on the front of the building, which is the largest in all of Sub-Saharan Africa. It’s estimated that the structure cost some $25 million to construct, and took roughly three years to bring to fruition, from the early investing stage through opening day. So far, it has been well-received by local residents, who have largely been treating visits as a family outing and appreciating the nice cool air conditioning.

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From the Michael Chudi Ejekam Blog: 7 Nigerian Retail Industry Facts

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Michael Chudi Ejekam is an expert in Nigerian retail, investing, and commercial real estate. Presently, the growth of the retail revolution has slowed some, but it is still a very strong sector that is absolutely primed to take the country to the next level in the coming years. The Michael Chudi Ejekam Blog has gathered seven interesting facts about the market that sets Nigeria apart from the rest of the world. Take a look; you’re bound to see some new information.

Facts About How Nigerians Shop

  1. Nigeria is poised for growth where supermarkets are concerned. In Kenya, around 30% of the population has shifted to formal retail supermarkets and around 60% of South Africans have as well. In Nigeria, just 2% of the population makes use of supermarkets, which likely has more to do with limited options and accessibility than anything else.
  2. Nigerians with Internet access like the convenience of shopping online. In a study performed by PayPal, 90% of people used the net to shop in Nigeria, compared to 60% in Kenya and 70% in South Africa. Experts say that brick-and-mortar retailers can boost sales by commingling their options and by offering point-of-sales devices and customer-driven kiosks on-location.

Facts About Nigerian Consumers

  1. Consumers feel optimistic about their futures- more so than those in other countries. Almost three-quarters of people surveyed say their finances will be much better off in as little as two years. When consumers in other markets were asked the same question, just 66% of South Africans agreed. Only 52% of Kenyans could say the same.
  2. Consumers are both brand and budget-conscious. One of the biggest factors for consumers in the region when considering what to purchase is still the cost. A whopping 37% prioritize this over everything else. The second major factor is quality, with 31% saying they will go for a brand that they believe to be high-quality, often choosing the same option again and again because it’s trustworthy.

Facts About the Market

  1. Nigeria is ranked one of the top countries in Africa for consumer demand potential. The country trailed close behind South Africa and Mauritius, topping Morocco by one slot and Kenya by 12.
  2. The market lacks brand diversity. One of the biggest needs uncovered by research is that very few brands are available and the majority of Nigerians are willing to try new products if they’re high-quality and have a good reputation.
  3. Retail and wholesale make up a large portion of the GDP. The market presently accounts for 16.4% of the GDP and with urbanization and the population growing, is expected to continue to be a solid investment opportunity.

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From the Michael Ejekam Blog: 10 Fastest-Growing African Retailers

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Being involved in commercial real estate and retail investments, Michael Ejekam is constantly watching the market to see which companies are performing well. While knowing which ones are profitable and are at the top help in knowing where to invest, watching companies as they climb the ladder is essential. This can give you keen insights into which strategies work, as well as what products consumers are demanding. The Michael Ejekam Blog has gathered information on ten of the fastest-growing companies in Africa’s retail sector, with statistics from Deloitte.

1. Choppies Enterprises Ltd

Headquartered in Botswana, Choppies is the fastest-growing retail company in Africa and also ranks 12 in terms of sales. Their sales jumped up 24.4% during the reporting period.

2. Zambeef Products Plc

Aptly named, Zambeef hails from Zambia and fell just behind Choppies in terms of growth during the same reporting period. An increase of 23% in sales brought the company to 20 on the total revenue list.

3. Mr. Price Group Ltd

The South African clothing and accessories retailer, Mr. Price, gained 15% in sales over the course of the year. This landed them in seventh place in terms of sales.

4. The Foschini Group Ltd

Another South African purveyor of apparel, The Foschini Group, took fourth on the fastest-growing list, with revenue climbing 13.3%, but topped Mr. Price in terms of revenue by one slot.

5. Woolworths

Internationally-known Woolworths took fifth place in both growth and total sales. The clothing company is headquartered in South Africa and grew by 12.7% during the reporting period.

6. Société Magasin Général SA

The only Tunisian company to make the list was Société Magasin Général SA, a general merchandise venue, showing steady gains of 11.3% and earning the 16th slot in terms of sales.

7. The SPAR Group Ltd

Though the SPAR Group of South Africa holds the fourth spot in terms of total sales, it only came in seventh place for growth. However, a comfortable 10.7% increase for such a large company is commendable.

8. Shoprite Holdings Ltd.

Another large South African company, Shoprite, came in eighth place for growth, showing a 10.5% increase. However, it beat out all other companies for sales.

9. Massmart Holdings Ltd

Massmart, headquartered in South Africa, fell just behind Shoprite on both lists; coming in number nine for growth at 9.8% and taking the second spot for sales.

10. Furnmart Ltd

The only home furnishings retailer to make the top ten is Frunmart, with 8.9% growth. The South African company comes in 23rd for overall sales.

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Michael Chu’di Ejekam Presentation At Broll Convention

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Michael Chu’di Ejekam delivered a presentation on the Broll event titled “Retail Industry: 10 Years from Now”. Michael’s presentation focuses on Nigeria’s retail development and is aptly named “The next generation of malls in Nigeria – the same? or Adapt?”. Check this slideshare for more information.

Download Michael Chu’di Ejekam Presentation HERE

Michael Chudi Ejekam Blog Presents: 5 Largest Retailers in Africa

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As a thought leader in Africa’s retail revolution, Michael Chudi Ejekam constantly has eyes on how businesses throughout the region are doing. This enables him to keep a pulse on the industry and assess opportunities for growth, as well as offer advice to companies he consults, so that they may avoid the same pitfalls other enterprises have made. Like Michael Chudi Ejekam, Deloitte Global also offers insights into global matters for investors, and the group has recently published their findings for the top retailers in Africa. Here’s a look at their top five, as well as some background information on each.

1. Shoprite

Michael Ejekam’s opinions on Shoprite Holdings Ltd have been covered by the media repeatedly. The powerhouse brand topped the charts by bringing in $9.9 billion during the last reporting period.

2. Massmart

The Wal-Mart subsidiary, Massmart Holdings Ltd, has been in the news lately because it isn’t quite hitting the mark in terms of expected growth, but company officials aren’t worried at all. According to Bloomberg, Chairman Christo Wiese told an audience at the Consumer Goods Forum’s global summit  that businesses need to plan to stay for the long haul before setting up shop in Africa for this reason. CEO Doug McMillon also remains optimistic about the region. “South Africa is a terrific market and it gives you something to work with but our aspirations are for the sub-Saharan African region,” he said. The company hit $7.5 billion during the last reporting period and took second place.

3. Pick n Pay

During the same reporting period, Pick n Pay Stores Ltd reached $6.3 billion. The company recently announced that its profits were up a full 26%, and that it plans to expand. Their revamped strategy for growth includes expansion into Nigeria and opening 175 stores in various formats. The heart of it will be in Nigeria, with 51% of operations being held within the country.

4. The SPAR Group

Eyes have been on the SPAR Group Ltd, as the company has recently been working on expansion outside of Africa. However, Chief Executive Officer Graham O’Connor reassured Bloomberg in an interview, “The Southern African region is still our primary focus — we are seeing good returns in Botswana, Zambia, and Mozambique.” The company brought in $5.2 billion and came in fourth place during Deloitte’s research. At the time of the Bloomberg interview, another 5% increase in sales was noted.

5. Woolworths

Recently named “South Africa’s Most Reputable Retailer” and reporting strong gains globally. Woolworths Holdings Ltd easily made its way into the top five. With earnings of $3.8 billion, the company beat out the next in line by more than $2 billion. CEO Ian Moir gives credit to clothing sales in South Africa, which recently jumped up 11.7%.

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Michael Chudi Ejekam Educates Public About Retail Trend Via New YouTube Channel

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Expert retail developer and popular speaker, Michael Chudi Ejekam, releases new YouTube channel to share valuable insights and trends regarding retail development in Nigeria and beyond. Ejekam plans to share videos highlighting various retail establishments. To learn more visit: http://michaelchudiejekamrealestate.com/

New York, NY, United States – June 9, 2016 /PressCable/ —

Michael Chudi Ejekam, expert retail developer, shares his insights on market trends. Now investors or business owners wishing to build retail shopping malls or roll out grocery chains, have access to a new YouTube channel geared to educating about how to navigate the Nigeria market.

To Learn More Visit: http://michaelejekamblog.com/

Challenges in securing land, equity and debt financing challenges, high construction costs and dearth of real estate experience have hampered real estate development in Nigeria, Africa’s largest economy. Michael Chudi Ejekam, real estate expert, aims to help commercial businesses or potential investors navigate the inconsistencies and confusion regarding real estate developments in and around Nigeria.

“There are sizable challenges to overcome but in many ways Nigeria represents the perfect storm for real estate investment; huge population, rapid urbanization and a growing middle-class,” said Michael Chudi Ejekam, former Director of Real Estate at Actis, a London-based $7.5B private equity firm.

Ejekam aims to share expert insights into the rapid development and expansion in Nigeria to include full cycle retail investment and development: site origination, equity investment, planning approvals, development management, tenant leasing, asset management and exits. Visit the new site now:

About Michael Chudi Ejekam:

Michael Chudi Ejekam is a renowned leader in the “retail revolution”. He is a widely quoted retail thought leader, with strong local business and government relationships. Michael Chudi Ejekam served as Director Real Estate for W Africa for Actis, a $7.5B private equity firm- most active retail developer in Sub Saharan Africa (ex SA) for 7+ years. Ejekam originated $700+m in retail projects. Projects include $100m Ikeja City Mall Lagos, $120m Jabi Lake Mall Abuja and Accra Mall. Other projects include Heritage Place, Nigeria’s first green certified commercial building. Originated three upcoming Nigeria malls ranging from $150-185M each totaling over 40,000m2 each, which would be largest in the region. Additional information about Michael Chudi Ejekam can be found here: http://michaelchudiejekamrealestate.com/

For more information about us, please visit https://michaelchudiejekamretail.com/

©2017 Michael Chu'di Ejekam Retail

Michael Chu'di Ejekam

Michael Chu'di Ejekam is a Commercial Real Estate Developer born in Nigeria. He is a graduate of "The Wharton School of the University of Pennsylvania", a private Ivy League university business school located in Philadelphia.
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