The upsurge of ultra-modern shopping malls in Nigeria in recent years has presented viable opportunities for real estate growth and development in Nigeria. In recent years, Modern shopping malls have sprung up across various cities in the country. The Palms Shopping Mall, Lekki; Ikeja City Mall, Surulere and E-center, Yaba are few of the shopping malls which have become economic hubs and tourist attractions for visitors. Outside Lagos state, Shoprite Abuja and Tinapa City Resort Calabar are some of the malls attracting high patronage.
In Lagos, the Palms Shopping Centre opened in 2006 in Lagos Nigeria and is fully leased. The $40million, 430,000- square-foot, fully air-conditioned mall is a venture between Actis, U.k. private equity investor; and Snap Blu, a company controlled by Nigerian developer Tayo Amusan.
In Abuja, Nigeria’s capital, Shoprite which was opened in June 2012 has had all its stores leased out within just a few weeks of its opening. Alausa which traditionally rings a bell as the seats of Lagos State government opened up further to another kind of business, on December 14, 2011 as an ultra-modern shopping mall, Ikeja City Mall, opened its doors to the public. With this, the hitherto serene ambience of the environment has become a beehive of shopping activities as residents on the Lagos Mainland axis are now taking advantage of its location to enjoy wonderful shopping experience. This is adding to its outlets in Lekki, Surulere and Ikeja, all in Lagos and one in Enugu.
Aside from the fact that Nigerians are evolving in their shopping experiences with greater preference for ultra-modern shopping malls amongst the middle-class earners in the society, another major attraction in the shopping malls are the convenience from facilities such as adequate parking lots, electricity and security.
The single storey structure at the palms shopping mall has off-road parking for approximately 720 vehicles. The Palms houses about 62 shops of varying sizes and designs which include electronic shops, boutiques, cosmetic shops, hairdressing salons, restaurants and gifts shops offers the exciting concept of “one-stop shopping” a concept that is just evolving in Nigeria.
Another significant advantage is that it adds to the pool of job opportunities as each store employs both direct and indirect staff. The Palms mall provides direct employment to approximately 700 Nigerians and has through supply chains created an estimated 5,000 more Jobs.
Despite its often high rent and purchase fees, shopping malls across the country are thriving and witnessing large subscriptions from organizations and business owners who see it as a good avenue to reach their customers.
In Abuja, Nigeria’s capital, Shoprite which was opened in June 2012 has had all its stores leased out within just a few weeks of its opening. Alausa which traditionally rings a bell as the seats of Lagos State government opened up further to another kind of business, on December 14, 2011 as an ultra-modern shopping mall, Ikeja City Mall, opened its doors to the public. With this, the hitherto serene ambience of the environment has become a beehive of shopping activities as residents on the Lagos Mainland axis are now taking advantage of its location to enjoy wonderful shopping experience. This is adding to its outlets in Lekki, Surulere and Ikeja, all in Lagos and one in Enugu.
Aside from the fact that Nigerians are evolving in their shopping experiences with greater preference for ultra-modern shopping malls amongst the middle-class earners in the society, another major attraction in the shopping malls are the convenience from facilities such as adequate parking lots, electricity and security.
The single storey structure at the palms shopping mall has off-road parking for approximately 720 vehicles. The Palms houses about 62 shops of varying sizes and designs which include electronic shops, boutiques, cosmetic shops, hairdressing salons, restaurants and gifts shops offers the exciting concept of “one-stop shopping” a concept that is just evolving in Nigeria.
Another significant advantage is that it adds to the pool of job opportunities as each store employs both direct and indirect staff. The Palms mall provides direct employment to approximately 700 Nigerians and has through supply chains created an estimated 5,000 more Jobs.
Despite its often high rent and purchase fees, shopping malls across the country are thriving and witnessing large subscriptions from organizations and business owners who see it as a good avenue to reach their customers.
Yusuf Adelakin, the Manager of Ritz Nigeria Limited which has its outlet at Adeniran Ogunsanya Shopping Mall, Surulere says despite the high rent charged at the mall, it offers a pool of potential customers which cannot be gotten elsewhere. “The rent is high but the customers are much too”. Families come here to shop alot, people bring their colleagues, friends, children and because of the serene environment, they have a good shopping experience and that is good for us”.
Ikeja City Mall, Alausa which opened only last year is also completely subscribed. Bola Animashaun, a marketing executive at the mall’s management office noted that people has already started indicating interest in renting or buying stores before construction work was completed. According to him, there are currently no empty stores in the mall. Owners of shops in the complex also confirmed that business has been good. Nike Ishaya, a graduate of English from the University of Lagos, owns a shop in the mall, where she trades in ladies shoes and bags. For her, business within the complex has been quite encouraging especially during the time operations began there “Due to the rate at which people visit the mall, we have had more successes within this short period of operation. We have made double the sales my mother makes in her Alade Market shop,” she explained.
Ikeja City Mall, Alausa which opened only last year is also completely subscribed. Bola Animashaun, a marketing executive at the mall’s management office noted that people has already started indicating interest in renting or buying stores before construction work was completed. According to him, there are currently no empty stores in the mall. Owners of shops in the complex also confirmed that business has been good. Nike Ishaya, a graduate of English from the University of Lagos, owns a shop in the mall, where she trades in ladies shoes and bags. For her, business within the complex has been quite encouraging especially during the time operations began there “Due to the rate at which people visit the mall, we have had more successes within this short period of operation. We have made double the sales my mother makes in her Alade Market shop,” she explained.
Cinemas also present another attractive feature of these shooping malls as those who have such facilities boast of high patronage especially from the youths and children. The Palms Shopping Mall, Silverbird Galleria and E-Centre are major hubs especially at weekends and holidays for youths and children who take time out to watch their favourite movies on big screens.
Customers also find that they have access to genuine goods at such shopping malls as retailers are often the manufacturers themselves or direct distributors. New malls to open lured by the country’s growing population, increasing purchasing power of the elite and limitless investment opportunities, foreign and local investors are falling over themselves to set up new ultra-modern shopping malls. Malls are springing up everywhere in places like Abuja, Port Harcourt, Lagos, Enugu, Kano and Kaduna.
South Africa’s Shoprite Holdings Limited is said to be the most aggressive of the international retailers operating in Nigeria. According to sources, the company plans to open as many as 700 outlets in across the country. Nigerians are also eagerly anticipating the entrance of three global retail giants; Wal-mart of the United States of America, Carrefour of France and Tesco of the United Kingdom.
South Africa’s Shoprite Holdings Limited is said to be the most aggressive of the international retailers operating in Nigeria. According to sources, the company plans to open as many as 700 outlets in across the country. Nigerians are also eagerly anticipating the entrance of three global retail giants; Wal-mart of the United States of America, Carrefour of France and Tesco of the United Kingdom.
Upcoming mall projects include; The Polo Park Mall in Enugu State, a planned shopping center in Ilorin, Kwara State and Spar International among others. Future and growth within modern Nigeria with a population of over 160 million and growing, Nigeria offers an excellent opportunity for investors to cash in to the growth expected to occur in the next decade or two. The success of the few ultra-modern shopping malls is testimony to this.
Many state governments have actively started developing their states by creating a friendly environment for investment. The Nigerian economy is growing, and this is leading to a demand for quality housing, office space and other related estate infrastructure. The development of the Nigerian retail market is contributing to improve local employment and training; it is also increasing tax collection of state government authorities who are starting to realize the importance of formalizing retail and shopping activities; it is generating additional demand for agricultural products; and it is showing local and foreign investors that Nigeria offers great business opportunities that with time and maturity should materialize in attractive returns.
There is still a huge gap in demand and supply and the market is open to developers to fill the gap
There is still a huge gap in demand and supply and the market is open to developers to fill the gap
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