TALKING

From Lagos to Nairobi , Cairo to Casablanca , the numerous trade outlets remain the biggest segment in most markets across the continent . As a result of structural and infrastructure challenges such as absence of modern malls , transportation bottlenecks , currency fluctuations and unreliable electricity supply , traditional retailers remain an integral part of the retail landscape .

South Africa remains an exception , with a large and developed modern retail sector that contributes more than 65 % of the country ’ s consumer goods sales .

According to market intelligence and advisory centre , 6Wresearch , the African retail and wholesale market size is expected to see significant growth between 2022 and 2028 . Boston Consulting Group , BCG states that African consumers on average continue to buy more than 70 % of their food , beverages and personal care products from the continent ’ s more than 2.5 million small , independent shops .

However , this move is not just a reaction to events like the pandemic ; it reflects a broader trend in consumer behaviour as people enjoy the speed and convenience of online shopping .

Success in the retail environment hinges on retailers ’ ability to blend short-term responsiveness with a visionary outlook , ensuring that while continuing to meet today ’ s needs , they also keep adapting to the digital trends shaping the future of retail .

Henry Myburgh , Strategic Key Account Manager , Vertiv Africa

It can be seen that digitalisation of traditional markets across Africa suggests strong business and growth opportunities . And , despite its popularity and resilience , traditional retail in Africa faces many challenges , including the expansion of modern retail , the rise of e-commerce , and changes in consumer behaviour . In response to such challenges , a growing portion of traditional shops are slowly adopting digital retail services .

According to BCG , in Kenya the proportion of retailers offering remote ordering rose from 27 % in early 2019 to 39 % in late 2021 . As the informal retail sector adopts more technological solutions , technology can play a crucial role in digitalising traditional retailers with innovative solutions to resolve bottlenecks and accelerate transformation .

African retail in flux

The foundation of the retail sector is shifting as consumers continue to embrace digital platforms . The impact of the pandemic significantly speeded up this process , pushing retailers to adapt to online models to meet consumer demands far more quickly than had been previously planned .

The ongoing evaluation of IT infrastructure takes place in a landscape characterised by intricacies and challenges . Across Africa , retailers face unique complications , in that they are required to deal with issues such as erratic power supplies and IT infrastructure levels that are often less developed than in other parts of the globe .

The achievement of consistency across diverse channels is central to the success of businesses in the sector . The line between online and offline experiences continues to blur , necessitating a seamless transition between virtual and physical interactions with brands .

In addition , the optimisation of systems , streamlined logistics and maintaining consistent stock levels all emerge as integral components of a positive and consistent customer experience .

In-country regulations

Compliance with local and international environmental regulations further amplifies the intricacies of retail processes . Retailers must navigate a complex landscape of rules and standards while striving to build an efficient and resilient infrastructure .

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