Shoprite Northern exposure
News from up north is that Shoprite is opening its first wholly-owned DC in Nigeria, a 4,700m2 facility, most of which will be used by Freshmark, the Big Red One’s fruit and vegetable procurement, buying and distribution arm, and the rest of which will be for dry goods. Located in Lagos, the DC boasts all the mod cons, including a banana-ripening room, and allows suppliers, including small farmers, to deliver directly to the business for easy distribution, and for Shoprite to add value by doing some of its own packaging. A little further South, and to the right, Shoprite is expanding its operations in Zambia, opening its 35th store in that mineral-rich democracy. The new store, its 11th in Lusaka, is located in the Novare Great North Mall, adding another 142 jobs to the 4,200-strong workforce in the country, and another shot in the arm for local suppliers, who provide the business with 78% of its merchandise in-country.
Comment: Shoprite’s advance into Africa is textbook stuff – it hasn’t been easy, but they are nailing it. The Ti analyst team are tracking corporate FMCG retail growth in Africa closely – contact the Ti team to see how they’re stacking up.