Supermarket business plan in Nigeria Industry Overview:
This is a Complete Guide to Setting Up a Supermarket in Nigeria:
A supermarket business is one of the most lucrative businesses in Nigeria an enthusiastic entrepreneur can venture into.
Most businesses in Nigeria require skills in market penetration but with this business the manufacturing companies have already done all the necessary marketing and exposure you’ll need, all that is needed is to find a suitable location.
When setting up a supermarket business in Nigeria you need to be confident about the product you are purchasing and its supply, you must be sure that the product is in high demand. You need to consider branded goods from well reputable companies like Coca Cola, Unilever, Nike etc. In fact, if someone knows your supermarket he/she will even speak highly of you based on his experience buying quality products through your store or your websites.
If you want to get more customers then for your supermarket business in Nigeria then you need to focus more on volume meaning you need to sell lots of stuff fast by reducing profit margin while increasing exposure sufficient enough so people buy everything quickly.
When you have loyal customers they will always come back to you for more and more in the future.
It’s a good idea when you start selling to also create an online presence example: listing all your products on Jumia, Konga, Jiji, Facebook marketplace, Instagram etc. Or you can have your own website to increase the visibility and exposure of your supermarket business in Nigeria and remember, don’t try to be greedy because if you overprice your product people will not buy.
Make sure you have a good price for your products. If it’s a quality product and you have a friendly price then your sales will be good. Price is a core factor in the supermarket business in Nigeria cause it creates trust, It’s not just your customers that will trust you, but also your suppliers too. If they see that you are trustworthy they will want to sell more goods to you.
Remember, people like doing business with honest people because they know what they are going to get in return. You must be honest with suppliers because if not, then there is no point working with them at all so keep it fair and square.
Nigeria is a country with many grocery stores. Some are small and some are big.
Most Supermarkets in Nigeria deals in a variety of food supply, which can be raw or processed. We also have other supermarket niches such as clothing, electronics, and shoes.
The supermarket industry has been around for decades but has changed over time to meet the needs of residents. Supermarkets can be very expensive to set up due to the various equipment involved.
The company that owns the supermarket must also pay for things like electricity and water which can make it hard to keep the store running if they don’t get enough customers coming through the door every day.
Cost of Starting a Supermarket in Nigeria (Business Plan in Nigeria)
In our supermarket business plan, we examine the cost of opening a supermarket in Nigeria and what it entails.
Nigerian supermarkets are very expensive to open due to the high cost of rent, ongoing maintenance, and other factors. The average cost to open a supermarket in Nigeria can range from 1 million to as high as 20 million naira.
The main costs that must be taken into account when estimating the cost of opening a supermarket in Nigeria are land acquisition and construction costs etc.
The actual cost required to build new stores will depend on many factors including size whether they should be spacious or whether they can fit at one end of the building with some type of storage area. In order for this total investment to justify itself, you need not only have an excellent design but also adequate infrastructure such as shelves, driveways etc.
There’s needs no doubt that building three more buildings would add another multi-million naira worth of retail revenues each year even considering how much demand there is right now for grocery products in Nigeria (in terms of both consumer and government spending). With regard to logistics development alone grocery sales companies make Millions annually especially when they are around the luxurious residential area, like an estate.
Types of Products to sell in Supermarket In Nigeria
Here is a list of the top products for a supermarket business in Nigeria. The products are ranked according to the most popular and profitable.
- Foodstuff (which can range from packaged consumables to raw food)
- Tools (small and medium-sized equipment for all kinds of work)
- Skincare products
- Deodorant, perfume or body spray
- Pesticides and insecticide
- Interior design materials or fittings
- Clothes and clothing accessories (like bags, shoes, belts etc)
- Jewellery (wrists watch, rings etc)
- Mobile phones and accessories
- Computer and computer equipment
In most foreign countries supermarkets do sell a variety of goods and also offer some services but In Nigeria, we tend to niche down to a particular aspect in this industry, while doing your market research make sure you find out what sells best in that location, some locations can be food orientated while others might be clothing.
Does The Nigerian Government Offer Tax Deductions on Start-up Costs for Supermarkets?
The Nigerian government offers tax deductions on start-up costs for supermarkets. The Nigerian government has been trying to make Nigeria a more business-friendly economy by introducing tax deductions for start-ups. The deduction is available irrespective of the type of business and the amount invested in it. As a result, many entrepreneurs have started new successful businesses, which in turn has created jobs and increased economic activities in the country.
What Kind of Supermarket Business Plan in Nigeria Market Research Should you Conduct When Setting Up Your Own Supermarket Business In Nigeria?
In this section, we will discuss the importance of market research in your Supermarket business plan in Nigeria while setting up your own supermarket business in Nigeria.
Market research is a process of understanding the market and consumers.
It is important because it helps you to know what products people want and how they want them to be packaged. It also helps you to know how much people are willing to pay for these products. Market research can also help you understand consumer behaviour, which can be very helpful when deciding where to place your supermarket.
What kinds/products do Nigerian customers buy?
Above we talked about different products to stock your grocery business in Nigeria with.
But generally, there are four main types of products grocery stores in Nigeria purchase, they include
- Ready-to-eat food (shopping),
- Provision (Milo, Milk, Omo)
- Ice packs & energy drinks etc.
- Equipment (Toys, Brooms, Mop etc).
How to Market Your Supermarket Business in Nigeria Successfully
Marketing is a necessary part of any business. For supermarkets, the market is a little different. They have to not only advertise their products but also the grocery shopping experience.
Supermarkets have to make sure that they are providing an experience that is worth it for the customers. They need to offer quality food, affordable prices and convenience in order to attract more customers and keep them coming back.
A supermarket in Nigeria’s marketing strategy should focus on these two things:
- What they want their customer base to be,
- The Experience they want their customers to have when they step into the store.
- Feeling they will have once they leave the store
If people are buying products from you then there must be a reason for that. Be sure to do proper research on what other companies are doing in your marketplace so that you can learn how to do things better than them.
You should also study how they advertise their business too because most of them won’t tell you how they do things so it is up to you to find out how they do it. If you study your competitor’s business then you can learn from them and make your business better than theirs! I have learned a lot about my competitors by simply watching what they are doing and learning from them. By doing this I have been able to improve my business skills a lot to do it better than them.
Also, you need to know how much your competitors are charging for their products and if possible then try to find out how much their advertising costs too. If you are not sure of what it costs to advertise then ask other people who have done this before. Some people don’t want to share this information with you but if they won’t tell you then just ask someone else.
Table of content of Your Supermarket business plan in Nigeria:
Business structure and systems are built upon basic and organized and planned business.
In the supermarket business to counter competition, hostile external economic factors and customer needs, a successful venture should have laid down goals and objectives which lead them towards an effective, efficient and profitable route in a long run.
The importance of getting a supermarket business plan or for any type of business cannot be overemphasized.
Before you start to get a business plan from us you need to have a better understanding of the actual cost for the type of supermarket you’re about to start.
This is what your Supermarket business plan in Nigeria should contain:
- Executive Summary
- Description of Problem and Solution
2.3 Value Proposition
2.4 Business Objectives
2.5 Critical Success Factor
2.6 Current Status of Business
2.7 Legal Requirement
2.8 Contribution to Local and National Economy
2.9 Contribution to SDG
- SWOT Analysis
- Market Analysis
- Competitive Analysis & Risk Analysis
- Marketing Plan
6.1 Description of Product (S) or Service (S)
6.2 Potential challenges in the business industry
6.3 The Opportunity
6.4 Target Market
6.5 Marketing and Sale Strategy
- Production Plan/Operational Plan
7.1 Description of the Location/Factory
7.2 Raw Materials/consumables
7.3 Production Equipment/Capital Expenses
7.4 Equipment/Depreciation Table
7.5 Pricing strategy
7.6 Record/Stock Control Process
7.7 Pre-operating Activities and Expenses
8.0 Organization Structure and Responsibilities
8.1 Salary Schedule
9.0 Financial Plan
9.1 Start-Up Capital Estimation (Expansion Capital Estimation)
9.2 Loan Details
9.3 Business Risk and Mitigating Factor
9.4 Financial Projections
9.5 Sales Forecast And Sales Assumption
9.6 Income Statement (P&L) Account
Please note that a bad business plan can ruin your business reputation and also cause loss in investment, so be very diligent while buying a business plan.
Be rest assured we provide great value for your money by making sure our business plans pass through rigorous steps before they are sold or given to a customer we make sure to provide you with accurate analysis and data set that directs your business decisions the right way.
Supermarket business plan in Nigeria Conclusion:
Setting up your own successful supermarket is not an easy task. But if you are willing to put in the work needed, you will be able to reap all of the benefits that come with it
The supermarket industry in Nigeria is booming and it is the second-largest employer in Nigeria. It has also been a key contributor to the growth of the Nigerian economy. The future of the supermarket industry in Nigeria is looking very bright as a result of its continued growth and success
The first thing in business aside all I’ve said is acquiring a business plan which sets a futuristic success plan and guidelines in achieving desired goals and objectives you have for your supermarket business.
You can get a supermarket business plan in Nigeria from us at NaijaCEO