High street retailers are struggling to turn their fortunes around as rising inflation and slow wage growth continues to squeeze shoppers pocket in Africa’s largest economy that just exited its first recession in 25 years.
Prices of clothes, the delight of Nigerians at festive period has gone up as retailers stock pile goods in order to preserve margins during the festive period.
Market surveys carried out by BusinessDay at Ikeja, Yaba, Trade Fair Complex, Idumota, Ebute Ero, Balogun, Iyana Iba, Oyingbo and Mile 12, among others, confirmed that prices have increased.
At Yaba and Ojuelegba Markets, the survey shows that importers and retailers of fashion wares and textile materials have increased the prices of their products.
John Obi an importer of fashion wears from China and India told BusinessDay at Yaba that ‘’The prices of my goods have gone up nearly 50 percent compared to what it used to be in August and as the season draws nearer it will increase further.”
A further survey At Yaba, shows the prices of dresses for girls’ range from N6, 500 to N15, 000, depending on the brand.
Ball gowns go for as much as N14, 000, some for N10, 000, while others are as low as N8, 000 and N6, 500. There are still some that go for N3, 500.
At Ikeja, Lagos the story is no different it was discovered that prices of items, cosmetics, groundnut oil and beverages, among others, have already witnessed over 40 percent hike from just four months ago.
“I bought my goods for over 4 months in anticipation for a boom this period. Yes people are not buying but am not ready to knock down my price and run into a loss,” Victory Eseneyan a retail shop owner said.
A five litre of groundnut oil which was selling for N1, 700 – N2,500 depending on the location, is now selling for N2,900 – N3,500 while its 3.8 litre now sells for N2,000 as against former price of N1,600. A bottle of groundnut oil previously sold for N300, now goes for N350-400, just as a big keg which formerly sold for N6, 500 now stands at N11, 500.
At the aforementioned markets, a 20- litre keg of palm oil that sold for N6, 000 is now selling for N7, 500 while a bottle which was selling at N200 before, now sells at N450.
Also, a three litre keg of same product which then sold for N1000 at Ore, Benin and other points along Benin/Ore Expressway, now goes for N1400.
Analysts have blamed weak consumer spend on rising inflation and weak currency as most retailers import goods.
Nigeria’s inflation slowed for the tenth month in a row in November, easing to 15.90 percent, below the 6 and 9 percent central bank target, the National Bureau of Statistics (NBS) said in a recent report.
According to Statistics body, Food Index increased by 20.30 percent (year-on-year) in November, down marginally by 0.01 percent points from the rate recorded in October (20.31 percent).
The average annual rate of change of the Food sub-index for the twelve-month period ending in November 2017 over the previous twelve month average was 19.39 percent, 0.25 percent points from the average annual rate of change recorded in October (19.14) percent, according to the report.
“The rise in the index was caused by increases in prices of bread and cereal, milk, cheese, eggs, coffee, tea, cocoa, fish and Oil and fats,” said the report.
BALA AUGIE AND DAVID IBEMERE
