Sample Supermarket Business Plan in Nigeria PDF & DOC (DOWNLOAD)

EXECUTIVE SUMMARY

Nigeria has an estimated population of over 198 million individuals. This population is expected to rise to 250 million by 2050. Every business minded individual knows that a rise in population means improved income.

Read: Get your Supermarket Business Plan in Nigeria

It is not surprising to find supermarkets in almost every alley and street in major cities within the country. The only differentiating factor among these supermarkets being the size and number of commodities sold. These factors are usually dependent on the amount of capital at the disposal of the entrepreneur. Most Nigerians, especially those living in metropolitan cities, visit supermarkets for their daily needs. These supermarkets have in stock different kinds of materials ranging from food products to laundry materials and beauty care products amongst others.

Lagos undoubtedly accounts for the highest number of supermarkets in the country. This should not be surprising considering the high population of the State. Lagos State is the most populous State in Nigeria with an estimated population of almost 20 million inhabitants. According to studies carried out by Accenture, Nigeria has attracted top supermarket franchises in the world like Walmart and Shoprite. The study presents that Nigerian citizens will be spending about 13.9 trillion Naira on non-durable goods by 2020.

Supermarkets are usually run by the entrepreneur who started the venture or sometimes leased out to be run by other individuals. In Nigeria most supermarkets sell a couple of products which are out of the regular supermarket stock like medicines, electrical supplies, clothing materials, etc. Statistics show that Lagos has the highest number of supermarkets in the country. Regardless of this statistics it is evident that the population of the city far outweighs the number of supermarkets. There is still a huge chasm between the number of supermarkets and the population of the city. This shows that there is a major need for more supermarkets to set up in different parts of the metropolitan city.

Our supermarket is committed to satisfy customers by way of providing a wide scope of high quality and competitively priced products as well as excellent customer service. To achieve this we need an initial capital outlay of #7,700,000.

OVERVIEW OF THE SUPERMARKET INDUSTRY IN NIGERIA

When the name Nigeria is mentioned anywhere in the world, the thought of oil boom and petrodollars floods minds. Asides the oil present in the country, a major resource in Nigeria is the constantly growing population. Presently the country is the most populous black nation boasting of a population of 198 million individuals. This population is expected to rise to 250 million by 2050. Every business minded individual knows that a rise in population means improved income.

The last two decades has seen a rise in supermarkets stocking foreign products but certain government policies and a growing desire for locally made products has caused supermarkets to focus more on Nigerian made products. These supermarkets are beginning to procure processed foods from Nigerian companies that get their raw materials from local farmers. This simply implies that slowly but steadily the Nigerian retail industry is growing to become a major part of the country’s economy. An evidence of this is the consistent rise of stores in different parts of the country. Definitely the market is not in Lagos alone as some will think.

Several factors have contributed to the rise of retail stores, otherwise known as supermarkets in Lagos and indeed Nigeria. One of the major factors is the inflow of young people seeking work and business opportunities in big cities. These young people run to these cities in search of the mythical “greener pastures” and have no choice than to depend on these supermarkets for their daily needs.

Before pressing on it is expedient to quickly discuss what a supermarket is, how the idea came about, characteristics and a few other info in brief.

What is a supermarket?

A supermarket, according to Wikipedia, is a self-service shop which offers a wide variety of products such as food, electrical products and other household needs which are organized in aisles. Another school of thought sees a supermarket as a large scale retail institution, usually larger than a simple grocery store, which specializes in convenience and necessary goods. A supermarket is usually a departmentalized store which is separated into four departments. These departments usually include but are not restricted to the following:

Self-service grocery
Meat produce
Dairy products
Other household needs.

A brief history of supermarkets

Supermarkets originated in the United States of America just after the Great Depression which occurred in the 1930s. Originally supermarkets were established by independent merchants who dealt majorly in food produce. Most of the food produce in those days were fresh, bought from farmers and sold off almost immediately. The major characteristic which differentiated these stores from regular grocery stores was the absence of sales personnel. All they had was a receptionist who collected payment for goods purchased.

Also Read: How to Start a Supermarket Successfully (Plus Business Plan)

The products were arranged in shelves separated by aisles to allow for customers to walk through and pick up their desired products. Most supermarkets were equipped with baskets or trolleys to be used by the customer for ease of movement of the products from the shelves to the receptionist’s desk. Once the customers are done with picking the commodities from the shelves, they proceed to the payment point where the receptionist weighs the goods or views the price tag attached. This singular reason gave supermarkets the reputation of self-service stores since the customers serve themselves and make payment when they are done.

Several supermarket models have been developed from this initial model and they have grown the retail store industry to be one of the most lucrative in the world.

Characteristics of supermarkets

They are usually located in major shopping centers in busy parts of a city. These shopping centers are usually equipped with large parking spaces. This is not to say that smaller supermarkets are do not exist especially in small cities. As stated earlier the size of the supermarket is usually dependent on the capital outlay of the entrepreneur.
Supermarkets do not offer any credit, rather they run on a cash and carry basis.
There are usually no selling counters or selling attendants to assist customers. Customers have to serve themselves till they need to pay.
Supermarkets are usually stocked with a wide variety of products both food and non-food inclined. The most popular commodities stocked by supermarkets are canned foods, meat and dairy products, bakery items, vegetables and other household necessities.
They are usually large. They might not start that way but with consistency and proper management measures, they grow to become a very useful channel of distribution for manufacturers.
Since no sales attendants are not employed, the supermarkets usually have a low sales overhead.
Products are usually stored on racks or shelves for easy access by customers. The shelves are arranged in aisles for easy traffic within the store.
It is among the leading retail methods in Nigeria today.
Contrary to what most people think, purchasing commodities in supermarkets is quite cheaper than what is obtainable outside.

Advantages of supermarkets

There are several advantages of supermarkets both to the entrepreneur and the customers. Enumerated below are a few of the most observable advantages:

There is usually a large turnover due to the number of products that they have in store.
They usually have low overheads, majorly sales overheads. Overheads are usually the expenditure that cannot be traced or easily identified. This advantage is based on the principle of operation which eliminates the sales persons.
Prices are usually low for the customers but the supermarkets enjoy huge profits due to rapid turnover.
Supermarkets are always situated in very accessible areas. This makes it easy for customers to make purchases with ease.
Entrepreneurs enjoy economies of large scale operation.
The buyer has freedom to decide what products to buy without fear of coercion or interference from sale persons.

Disadvantages of supermarkets

Just as there are several advantages of supermarkets, there are also quite a few disadvantages. These apply to both the buyer and the seller.

Supermarkets usually require large premises and huge capital for optimal operation.
Customers may not enjoy demonstration of the use of certain products by sales persons. Such products are usually not stocked by supermarkets.

Factors to consider in starting a supermarket

There are several factors that the entrepreneur needs to consider before setting up a supermarket. A few of the key factors will be discussed briefly below:

Location. The location is where the supermarket will be sited. It is no news that the location of a business will determine to a large extent the success of any business. A supermarket will need to be sited in a place with above average human traffic. The more people can see the supermarket, the better the chances of making sales. The supermarket should also be set in an accessible area. More accessibility means more sales and thus more profit.
A warehouse. It is important to get a small warehouse where goods can be stored before they are placed on the shelves for purchase. This is necessary to ensure that the store does not go out of stock.
Shelves. This is one of the major characteristics of supermarkets. The shelves are important for ease of access buy customers. The goods are displayed on the shelves and the shelves are labeled accordingly. It is always important to label the shelves so the customers know where to find what and how much each product costs.
Getting your products. Seek out reliable suppliers for each product. The products must be gotten at the best prices in the market and the supplier must provide them when needed. The major products sold in Nigerian supermarkets are:

Groceries
Toiletries
Wear accessories such as sunglasses and watches
Notebooks and stationary
Clothing
Food stuff (fresh)
Food stuff (frozen)
Household items
Electronics and appliances
Kitchen supplies
Baby care
Fashion and beauty products
Simple tools such as scissors
Clothing

This business plan is incomplete. To get the complete sample supermarket business plan in Nigeria PDF today, pay N10, 000:

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After payment, send your full name, email address and title (i.e. supermarket business plan in Nigeria pdf and doc.) to 07033378184. Your business plan will be sent to you 15 minutes after payment.

Sample Supermarket Business Plan in Nigeria PDF & DOC (DOWNLOAD)

Read: Get your Supermarket Business Plan in Nigeria

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