Another critical factor of noteworthy is that a visit to any foreign-owned superstores or supermarkets and glance at certain shelves like grocery, household equipment, and other consumables will clearly reveal that technically Nigeria is gradually entering another Dumping era. In many instances items produced locally are not found on shelves while foreign substitutes are conspicuously displayed. One strategic fact about retailing industry is that nations use it to promote local products, SMEs, emerging indigenous firms’ products and distinct traditional consumables. In other words, retailing industry serves as a platform for national trade policies and decisions to show case tradition and culture in terms of consumable items, households’ utensils, fashion lines and other items from SMEs, indigenous firms and micro businesses. Equally retailing outlets project traditional and national consumption patterns and behaviours and not to project nor sell foreign culture. The contemporary example is the case of British TESCO in China where the management has to offer services in Chinese ways and not British styles. British Animal Rights raised uproar about selling life chicken and other aquatic animals but the arguments that they only provided retailing services through the Chinese outlets – offering what Chinese consume; and Chinese consumers’ satisfaction is paramount to the business profitability, won the case for TESCO.
The indigenous retailers are not spared from the behaviour. Many indigenous retailers are platform to find items on Sales from the UK and USA on their shelves. On many occasions items denominated in British Pounds Sterling and US Dollars are found on the shelves and sharing space with substitutes produced by local manufacturers. This is antithetical to economic development and promotion of Made in Nigeria.
Therefore, a situation where foreign retailers will use Nigerian outlets to project, showcase and offer their national products and consumables is not a healthy development for our national market and economy. It only reveals the weakness in the retailing regulations and policies of operation for both foreign and indigenous retailers.
Secondly, there is an urgent need for a collaborative effort for the trio of Bank of Industry (BOI), Nigeria Tourism Development Corporation (NTDC) and Regulatory body for retailing (if there is any) of responsible government ministry to support viable and promising indigenous retailing firms to boost economic development and Nigerian tourism potentials. It is not farce that ‘to-do-lists’ of many tourists is to visit the TESCO, Walmart, Sainsbury, Sears, Aldi, Carrefour, Macy, Lianhua, etc. of this world because they equally stand as national symbols to their respective countries. In few years to come the slogan among the potential tourists to Nigeria is ‘A Visit to ADIDE, Prince Ebeano, or Yem-Yem Superstores’ and not ‘A Visit to Nigerian branches of Shoprite or SPAR’ which is gradually gaining popularity. It will only take concerted and collaborative efforts of government agencies in the areas financing, architectural design, tourism attraction policies, and firm and attractive retailing policies to achieve it.
Thirdly, government should as a matter of urgency come up with policies or a regulatory bodies that design modus operandifor the various operations and activities of emerging retailing sector in the country. The major critical areas that call for regulation to guide operations:
•The types and nature of retailing outlet to be promoted in the economy and the spread in order to avoid high concentration in one line. For instance while the economy is experiencing increased in the number of supermarkets and superstores there is low development in departmental stores and specialist outlet like grocery, pharmacy, etc.
•The projection of local products and restriction on imported items with local substitutes should be entrenched. Policy should be in place to regulate the behaviour. Alternatively incentives should be given to outlets that promote local products and Made in Nigeria brands.
•Training and development of Nigerians to handle managerial position in the newly-sprung up retailing outlets is imperative so that influx of foreigners to man managerial positions will be reduced. Presently, no higher institution offers courses in retailing management and this will make it difficult to produce local manpower for managerial position in the sector.
•The international practice of setting sizes, measurements and dimensions of stores should be stipulated to guide siting and volume of operations. Contemporarily, the dimensions and sizes of retailing outlet determine the location and proximity to convenience shops. The practice is strategic to save convenience stores from fierce competition they might face with big retailing outlets.
•The nascent industry needs to borrow from Indigenous decree of 1970s to formulate rules and guiding policies to set the industry on right path of entrepreneurship development among Nigerians. It is strategically imperative that certain retailing specialisations should be exclusively reserved for indigenous firms so that certain heritage can be preserved; local factors will not be adulterated; development and entrenchment of entrepreneurial spirit among Nigerians; integration factor with local industries etc. Thus, specialisations like grocery, furniture; arts and artefacts, etc. should enjoy exclusive right of indigenous retailers.
By and large, the population size of the country and other positive economic indices are the points of attraction to the international firms, and the sector provides opportunity for indigenous retailing firms to show case Nigerian products and culture. However, the success and sustainability of the evolving retailing sector in a way that would engender positive effects on larger economy is a function of government’s roles in policy making, strategic decisions, and importantly in implementation and execution of policies that put a right foundation in place for the nascent retailing sector.
Ayo Oniku
