The Chief Executive Officer of FoodCo Nigeria, Ade Sun-Basorun, has stated that limited purchasing power is having a negative influence on the retail sector.
He claimed that people were now choosing low-cost products and were price-sensitive.
He said that providing affordable consumer engagement is now crucial for retail owners.
Sun-Basorun stated in a statement that we are going through a challenging economic cycle that has decreased consumer spending power and is consequently having a significant impact on the organized retail sector.
“We have a consumer class that is more price-sensitive than ever; therefore, it is on to operators to innovate around systems and procedures to provide retail services at the most affordable costs.”
“Raising the bar on the quality and value of the products and services on offer is equally important.”
In order to keep the consumer retail space attractive, he continued, “The proliferation of fake and substandard products has been a long-standing concern. The modern retail segment must take the lead in ensuring that things are done properly and to approved quality standards.”
He believes that modern retail needs to be more accessible to customers and offer a channel of communication for manufacturers creating new items.
While the current economic situation would make investments in malls and other large-scale stores less likely, he continued, physical shopping experiences would still play a crucial role in contemporary retail.
The CEO pointed out that modern retail was dependent on the government for infrastructure, effective agency coordination, and successful agency taxes.
