South African retailer Pick n Pay is set to open its second outlet in Lagos on Glover road in Ikoyi. This comes amidst the retailer’s announcement that it would open 27 stores in FY22 in line with its move towards product differentiation that will see a split in  its offerings into two between premium stores  and ‘Qualisave’ stores. This is set to help the retailer realize its aim to achieve a sales growth of 10% a year (on average) between 2022 and 2026. 

In terms of its Nigeria strategy, the company had initially noted that its approach in the country remains cautious. In their FY 22 annual report, the retailer reported that their initial pilot store had a challenging start as a result of Covid-19 trading restrictions. However, the store’s sales performance had  improved with an easing of restrictions and growth in brand awareness. 

While it is still a bit too early to tell, Pick n Pay’s move to open a second store could be an indicator of the changing fortunes in Nigeria’s formal retail market that has previously been plagued by retailers exiting rather than entering the market.

This sentiment has been buoyed by the latest 11% increase in profit announcement by Ikeja City Mall from from $9.5 million in 2021 to $10.5 million in 2022 despite a pending disposal of the mall by Hyprop Investments.

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