Nigeria’s retail industry, historically anchored by open-air markets, has experienced a significant transformation since the early 2000s with the gradual emergence of modern retail formats. This shift has been driven by accelerating urbanisation, a burgeoning middle class, and the strategic entry of international brands such as Shoprite and SPAR, which have collectively laid the groundwork for a formal supermarket and hypermarket industry.
Despite the resilience of traditional retail, modern supermarkets and hypermarkets now command an increasing share of consumer expenditure, generating estimated revenues of ₦388.5 billion and ₦95.4 billion respectively in 2024. Nonetheless, this growth conceals persistent structural challenges. Macroeconomic headwinds – including currency depreciation, inflationary pressures, and declining real incomes – have dampened consumer purchasing power, compelling operators to reassess their operational models, pricing strategies, and sourcing channels. The industry remains predominantly urban-centric, with major chains concentrated in Nigeria’s primary commercial centres. Intense competition, alongside a proliferation of low-cost open-air alternatives and highly price-sensitive consumers, has compressed margins and heightened the necessity for strategic differentiation. Indigenous entrants, notably Bokku, compete aggressively on scale, affordability, and geographic proximity. Conversely, premium operators such as Dunes, QMB, and Grand Square target affluent niches through curated assortments and enhanced in-store experiences.
Structural inefficiencies, including unreliable logistics, layered taxation, and elevated port handling charges, compound operational challenges. Heavy reliance on imports exacerbates vulnerability to foreign exchange fluctuations, while customs delays and regulatory obstacles disrupt inventory flows and increase costs. In response, many retailers are pursuing backward integration and expanding local sourcing, particularly for fresh produce and fast-moving consumer goods, to mitigate volatility and enhance cost-efficiency. Digital innovation is reshaping the competitive landscape, with e-commerce and hybrid retail models enabling expanded reach beyond physical stores. Partnerships with logistics platforms and the adoption of omnichannel strategies, supported by rising internet penetration and consumer demand for convenience, indicate that digital channels will be central to future market growth.
This report provides information on the supermarket and hypermarket segments in Nigeria, including:
The following audience has been taken into consideration in preparing this report:
