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BUSINESS DAY
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C002D5556
Thursday 26 July 2018
Spending Trends
Petrol price across Nigeria fell 22.4 percent in first half 2018 BUNMI BAILEY
T
he average price of Premium Motor Price (PMS) referred to as Petrol fell by 22.4 percent to N148.2 between January and June across states in Nigeria BusinessDay analysis of National Bureau of Statistics (NBS) data released Tuesday indicates. BusinessDay analysis showed that the average price of petrol paid by consumers from January to June has been on a decline. Industry players in the oil industry attribute the decline to the abundance of supply by the Nigerian National Petroleum Corporation (NNPC) who has been doing the bulk of importation of petroleum
products following oil marketers withdrawal over a control price for the product implemented by the Petroleum Products Marketing Company (PPMC). Johnson Chukwu, CEO, Cowry Asset Management Limited said, “PPMC has significantly increased the volume of supply of petrol in the market beyond the demand that prices have been stabilized. They have really done so much to meet the demand of petrol and also ensure that their products are in different localities and even in the up countries locations where they are no coastal supplies.” In January, the average price of petrol was N190.9, in February it was N172.5, in March it was N163.4, in April it was N151.4, in May it fell to N150.2 and in June it was at N148.2 per litre.
PPMC was set up as a subsidiary and strategic business unit of the Nigerian National Petroleum Corporation (NNPC). PPMC
is run in conformity with the management culture of total quality in pursuant to the directive of the parent corporation the Nigerian
National Petroleum Corporation (NNPC). PPMC is the dominant supplier of refined petroleum products to the exist-
the Bright Future project, an initiative which offers work placements to freed slaves. Alibaba invests in AsiaThe global giant has partnered with Japan’s Kyushu Railway and will sell their tour packages and rail tickets through its travel site ‘Fliggy’. The online behemoth is also increasing its investments in tech startups, with facial recognition developer Megvii being the latest benefactor. Meanwhile, Alibaba’s Ele.me is shelling out a hefty EUR 112 per month over summer to lift its market share. Deal sealed Carrefour Indonesia has signed an agreement with the country’s mosque body to open 300 mini supermarkets in the mosque districts of cities
such as Jakarta, Bandung and Depok. Applying pressure in US & South America Amazon is leading the charge and quietly rallying like-minded companies to lobby President Trump and dissuade him from exiting trade agreements and introducing more tariffs which could hurt their businesses. Meanwhile, the tech titan is planning to open a 600,000 square foot robotics-based fulfilment centre in Washington. Walmart acquires The retail giant has purchased Costa Rican stores Perimercados, Super Compro and Saretto. Regulatory approval is still pending, but once approved, more than 1300 employees of the acquired stores
will join the Walmart group. Double the delicious Doughnut major JAB-backed Krispy Kreme is acquiring a majority stake in Insomnia Cookies, a move that allows the chain to diversify and offer more than its famed glazed doughnut treats. Responsible Food Carrefour Brazil has unveiled a new EUR 320,000 ‘social gastronomy project’ designed to develop zero-waste recipes and productions lines. The multi-national retailer will also introduce a new product line to reflect the work achieved through the project. Wine and welfare in Europe Aldi has beaten out the Big Four supermarkets for its excellence in wine retailing and has been named ‘Supermarket of the Year’
ing domestic and growing export markets within West African sub-region. Ayodele Oni, an energy partner at Bloomfield Law Practice said that so far there have been no problems with the supply of petrol in that period. “Between January and now, oil prices have gone up so it cannot be because of crude oil prices. So I think, it is the local market forces of demand and supply. Supply has been quiet good compared to demand. And also a lot of people now use alternative energy like solar. It recalled that in January this year, the Nigerian National Petroleum Corporation (NNPC) said it had deployed more of its depots and other throughput facilities to enforce the N133.28 per litre ex-depot price of petrol to marketers directly.
Global retail update
F
astfood major Chickfil-A is shaking up the meal-kit arena with its entry into the highly competitive market. Amazon is once again the target of Donald Trump’s wrath, with the president’s twitter rage causing the retail giant’s shares to dive. For now, speculation is mounting that Tesco is to open 60 discount stores under the name ‘Jack’s’ in an attempt to solidify its position as market leader. Also, Amazon is working behind the scenes to align companies and push back against the American government’s tariff agenda. Aldi has teamed up with animal welfare groups and is also celebrating a retail wine award. Meanwhile, Alibaba and Tencent are collaboratively seeking a stake in the world’s largest advertising company, WPP. Below are the recent updates from the world of retail. Newest competitor in America Chick-fil-A has become the first major US fast food chain to enter the mealkit market and looks to take Blue Apron and Hello Fresh head on. The food giant is trialling the new service in 150 Atlanta stores and will offer five different chicken-based take home kits. Politics and pursuit Amazon’s shares plummeted 2.4% following tweets from the American President condemning the company and calling the Bezos-owned Washington Post an ‘expensive lobbyist’ for the e-commerce provider. Meanwhile,
the race is heating up between Amazon and Apple to see who will cross the USD 1 trillion finish line first. Innovation station McDonald’s and Starbucks have paired up to launch the ‘NextGen’ cup project which will see industry experts and innovators collaborate to end cup wastage. The entire global industry will have access to the technology if the project is successful. More money Nike is set to increase the salaries of 7000 employees and review the company’s bonus structure. Although the pay increase will apply to all both genders, the shift comes after Nike was embroiled in its own #metoo movement, and an internal review revealed action needed to be taken to address pay parity and corporate culture. Competition heats up in Europe Rumours are rife that Tesco is close to unveiling ‘Jack’s’, a new discount store chain that could open in the coming months, as the supermarket major tries to regain some of the market it has lost to discount dominators Aldi and Lidl. New direction France’s largest food retailer, Leclerc is diversifying its offerings and plans to start selling electricity to French consumers later in the year. The French retailer will be the second major retail outlet to enter the power game, following Casino’s move in 2017. Fresh start John Lewis has become the latest retailer to pledge its support to victims of modern slavery by joining
by The International Wine Challenge Merchant Awards. The German discounter is also making headlines for its alliances with two major German animal welfare groups Neuland and Fairfarm and will extend its own-label free range selection. No horsing around Marks & Spencer is releasing a podcast series centred around the 2013 horsemeat crisis and the impact it had on supply chains. Meanwhile, the British retailer has teamed up with Octopus Energy to launch a new ‘green’ strategy through its M&S Energy brand. Spending big in Asia▪ China’s tech majors Alibaba and Tencent are reportedly in discussions to buy a minority share in advertising giant WPP’s Chinese operations. Meanwhile, Alibaba has contributed significantly to the latest round of fundraising by China’s Suning Sports, which saw the group raise USD 600 million overall. New opening Anticipation and social media hype have surrounded the opening of the Victoria’s Secret Hong Kong flagship store. It’s not the lingerie giant’s first foray in the Chinese city, but they have extended their range significantly to cater to the growing market. Tapping into potential ▪ Fashion brand Farfetch has acquired tech company CuriosityChina as part of a move to grow its Chinese presence and target customers through digital communication channels such as WeChat.
Compiled by Chinwe Agbeze