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African supermarket

 

Global consolidation in food retailing. Since 1990 the relaxation
of restrictions on international trade, foreign direct investment,
and foreign exchange markets have launched rapid
consolidation in food retailing and marketing worldwide. The
emergence of majority rule in South Africa led to a suspension
of economic sanctions and unleashed a rapid expansion of South
African supermarket chains throughout the continent, where
they increasingly compete with homegrown and international
supermarket chains. In Kenya alone, more than 200 supermarkets
now account for up to 30 percent of food retailing in the
country.The rapid scaling up of procurement by these large
retail outlets radically changes marketing requirements. Large
retailers and exporters require high volumes, consistent quality
and packaging, and guarantees of food safety and timing of
delivery—qualities most smallholders cannot currently meet.

South African supermarket group Shoprite Holdings plans to open three more stores in India after the success of its first franchised store in Mumbai.
Announcing a 12 percent improvement in results for the group, chief executive officer Whitey Basson said: "The franchise superstore the group opened in Mumbai during the year is expanding its high-income customer base.
"The store is already achieving a 40 percent market penetration in its catchment area and has managed to increase its basket size by 23 percent since opening."
The three new stores in India would be part of new shopping centres being developed in India.
Analysts here agreed with projections by Shoprite that there was huge potential for the company in India, given that only about two percent of the country's billion consumers used the formal retail sector. This is expected to increase to six percent within the next two years.
Shoprite Holdings also plans to open its first store in Nigeria in December. .

 


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