The Chief Executive Officer of FoodCo Nigeria, Ade Sun-Basorun, has said low purchasing power is negatively impacting the retail space.
According to him, consumers were now price sensitive and opting for low price goods.
He stated that it had now become important for retail operators to offer cost-effective consumer engagement.
In a statement, Sun-Basorun said, “We are experiencing a tough economic cycle that has contracted consumers’ purchasing power and is consequently having a direct effect on the organised retail space.
“Now, more than ever, we have a consumer class that is particularly price-sensitive, so it is up to operators to innovate around systems and processes to deliver retail services at the lowest prices possible.
“Equally as critical is the need to elevate the bar on the quality and value of products and services on offer.”
He added that, “The proliferation of fake and sub-standard products has been a long-standing concern in the consumer retail space and the modern retail segment must take the lead in ensuring that things are done properly and to approved quality standards in order to retain the attractiveness of the sector.”
According to him, modern retail needed to get closer to customers and provide an access channel for the producers developing products.
He added that while the present economic climate may be a disincentive for investments in malls and similar big-sized outlets, physical shopping experiences would remain an integral part of modern retail.
The CEO noted that modern retail relied on government for infrastructure, for efficiency in the collaboration across agencies, and for the effectiveness of taxation across agencies.
