HUBMART

AFRICA HUBMART

Riding the retail wave through a fresh, customer-focussed approachÂ

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Nigeria’s

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he trading of goods has been the backbone of commerce throughout the development of human civilization.

From ancient markets and bazaars through to out of town shopping centres and ecommerce, the retail trade has evolved enormously as time has elapsed.

In Nigeria, this is no different. “The retail industry in Nigeria is historically, and arguably, the oldest alongside agriculture, both of which have existed for centuries though evolving with

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Retail is on the rise in Africa’s most populated country, with Lagos-based Hubmart broadening its horizons thanks to a fresh, customer-centric offering Writer: Tom Wadlow | Project Manager: Josh Hyland

the times,” explains Anthony Atuche, Acting CEO of Lagos-based retail chain Hubmart.

“Nigeria was the major hub for the exchange and distribution of goods in West Africa, first among the empires

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and then between the colonials as far back as the 15th century because of its seaports and inland waterways which made it conducive for trade.”

What many would see as modern retail, however, is a relatively new construct.

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“There was a brief stint in the 80s with the emergence of iconic departmental stores like Kingsway, UTC and Leventis which diminished due to the unfavourable economic clime of that era, but it is flourishing again this decade with the introduction of more retail brands annually,” Atuche continues.

“This is evident in the growth in the market size nowadays which has almost doubled, reaching a rate of 3.5 percent from two percent a couple of years ago.

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Hubmart prides itself on a convenient, affordable and personable offering at its stores in Lagos

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“This growth signals opportunities as retailers are becoming more creative in their offerings, and customers are enjoying the best of both worlds in terms of competitive pricing of the open markets and a wide range of products and categories choices.”

Enter Hubmart

Hubmart signifies this new era of retail in Nigeria.

Operating three stores in Lagos, the 100 percent Nigerian-invested company is set to open a fourth in May 2019 in Omele, on the mainland of the city.

Spanning 1,250 square metres, the new site will be a timely addition to what is a very densely populated residential area, and is proof that the company’s multi-format concept has been a hit with consumers so far.

Boasting a wide selection of fresh produce that is competitively priced, Atuche points to the company’s subbrands as a key differentiator in what is an exciting, vibrant retail market.

Hubmart employs more than 500 people across its stores

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“Hubmart shouts out our fresh offers which emphasises the total customer experience,” he says.

“Our HubDeli and bakery stand out with alluring and addictive recipes.

This is combined with high quality and fresh proteins from our butchery department, along with our grocery and non-grocery offers, all of which are simply unrivalled. Our consistency in all we do is a virtue by itself.”

Hubmart’s sub-brands will soon include HubCafe, designed to celebrate Africa’s coffee heritage, while HubCare caters to customers’ health and beauty needs.

Atuche’s ambitions are bold, the company striving to one day become the leading retailer in Nigeria.

“We have over 500 employees who strive to create the ultimate shopping experience through quality customer service and a conducive shopping atmosphere which emphasises value at the best price,” he says.

FrieslandCampina WAMCO is excited to drive customer satisfaction with Hubmart.

Nigeria’s fast-moving consumer goods (FMCG) industry is a highly competitive sector with several brands jostling to earn the share of mind and heart of the target audience.

The entrance of the modern trade business (hyper stores) has heightened the rate of change, and the need to constantly meet the everyday needs of customers and consumers.

Working in this environment is no easy task.

It requires close management of business relationships and the ability to constantly adapt. This is what makes FrieslandCampina WAMCO Nigeria’s business relations with Hubmart Nigeria very significant.

Nigeria is the largest economy in Africa with a population of over 180 million people, making it a country of endless possibilities.

The country’s foremost dairy company and market leader is FrieslandCampina WAMCO, an affiliate of the Royal FrieslandCampina in The Netherlands, which has been providing branded high-quality dairy products throughout Nigeria and West Africa.

At the heart of its operations in Nigeria is the passion to make quality dairy nutrition accessible to Nigerians. This is strongly rooted in the company’s mission - nourishing Nigerian with quality dairy nutrition and overall strategy for product delivery.

For over 60 years, the company has deliberately positioned itself as a provider

of branded high quality dairy nutrition throughout Nigeria and West Africa. With a clear strategy of providing affordable nutrition through a range of low unit portion packs (LUPP) of its premium brands – Peak and Three Crowns evaporated and powdered milk – consumers can access quality and affordable dairy nutrition. This strategy is efficiently applied via the company’s extensive distribution network pan Nigeria.

Hubmart Nigeria is one of FrieslandCampina WAMCO’s Key Business Partners in the Modern Trade Channel. For the company, Hubmart is a strong chain store and operates a unique model that supports our company strategy to serve the 24-seven consumer and customer.

Hubmart understands the growing shopper need for convenience, hence by having food courts within each store outlet, it is able to creatively drive affinity with consumers and also ensure high store traffic and stock rotation which we support with the deployment of Brand Ambassadors, who drive conversion at the point of purchase in their outlets.

The company is opening new locations with the same standard and quality customer service and with our joint business planning approach, we see a lot of sustainable business initiatives and opportunities doing business with Hubmart. So indeed, FrieslandCampina WAMCO is excited to continue driving customer satisfaction with Hubmart, even in years to come.

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Indeed, Hubmart operates under the motto ‘happy to help…always’.

“This is our guiding principle and biggest differentiator in the market,” Atuche adds. “Through every decision to every action, from top management to the sales representatives on the shop floor, we strive for the total customer experience.

“This is only achievable through regular and consistent customer insight collation and analysis. Data accrued from the process has helped us stay on top of our game – we are different to and ahead of the rest.”

Such an approach is in response to the ever-changing lifestyles of Nigerian consumers, who are leading increasingly busy lives and demand simplicity, speed and value for money when it comes to their shopping activities.

CORPORATE CITIZEN As well as looking after its customers, Hubmart firmly believes in giving back to the local communities where it is based.

To this end, the company will be engaging in numerous corporate social responsibility activities covering health, education, community empowerment and poverty eradication.

Further, Hubmart is also determined to ensure all of its products are ethically sourced and handled in accordance with the highest quality and safety practices.

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Retail is one of the drivers of the economy in the country and the growing demand for more convenient and consistent shopping experiences with more variety puts modern, organised retail in the focus of investors”

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Hubmart operates various sub-brands such as HubDeli, HubCare and HubCafe

Retail – Nigeria’s next big industry?

The changing dynamics of Nigerian retail in response to consumer demand is also opening up enormous potential for further growth.

The sector already accounts for 16 percent of the country’s entire GDP, with research by McKinsey forecasting a $40 billion opportunity for food and consumer goods by 2020.

Another, perhaps more illuminating demonstration of this uplift can be seen in terms of floor coverage.

In 2005, Nigeria had just two shopping malls (the Palms Lekki Mall in Lagos and Ceddi Plaza in Abuja) and 30,000 square metres of retail space.

In 2017, retail space was measured at 326,958 square metres, representing a tenfold growth in just 12 years. The country is also home to several more shopping malls in cities such as Port

Harcourt, Ilorin, Owerri, and Onitsha.

Many factors are contributing to this, not least Nigeria’s growing middle class, which currently makes up around 24 percent of the nation’s population.

This rise in spending power, coupled with ongoing urbanisation, points towards a retail market on the up.

And the opportunity for this growth to accelerate is clear for all to see.

Despite the rapid escalation of retail space, Nigeria is still some way behind other markets like South Africa, which is still the continent’s most developed retail economy.

Atuche is thus an ardent optimist for the future of both Hubmart and the country’s retail sector.

He concludes: “Nigeria, as the biggest economy in Africa, is bursting with opportunities in industry, trade and commerce.

“Retail is one of the drivers of the economy in the country and the growing demand for more convenient and consistent shopping experiences with more variety puts modern, organised retail in the focus of investors (both local and foreign).

“This rising demand is evident in the increase in investments in the retail industry, resulting in the astronomical rise in the opening of retail stores in major cities around the country. This cake is growing rapidly.”

Hubmart Tel: +234 1 802 824 4137 info@hubmart.com www.hubmart.com

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35 Adeola Odeku Street Victoria Island Lagos Nigeria Tel: +234 1 802 824 4137 info@hubmart.com www.hubmart.com

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