Are Multinational Retailers Targeting Africa To Ease Consumption In Africa?

According to the world clothing and shoe net, investors are targeting the African continent.

Although some local retailers in Africa are experiencing financial pressures such as liabilities, investors' interests remain undiminished.

Now the largest retailer in East Africa, it has just sold 25% of its shares to an anonymous international investor.

The investor will inject $75 million into repayment of some short-term liabilities.

The family business also hired Andrew Dixon, a retired manager of Tesco, as chief marketing officer.

It shows that Nakumatt will emulate the business objectives of Tesco, which may reflect the mysterious ambition of investors to revive Nakumatt.

Shoprite, the largest retailer in Africa, is expected to be bought by furniture group Steinhoff.

Steinhoff was founded in Germany in the 60s of last century, and then bought Gommagomma, a local furniture chain store in South Africa in 1998, to move its headquarters to Cape Town.

The company positioned itself as "IKEA in Africa".

Last December 24th, major shareholders of Shoprite and Steinhoff announced the creation of an enterprise called Retail Africa.

Shoprite will take over Steinhoff's retail business in Africa, and Steinhoff will get a lot of Shoprite shares.

The exact date of the merger is yet to be determined, but it is certain that the acquisition will bring Steinhoff into wider Africa.

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Choppies of Botswana bought 75% of Ukwala, a family retail business in Kenya.

WAL-MART, the global retail giant, bought the biggest retailer in South Africa in 2011 for $2 billion 400 million, and marched into the vast African market.

Yes, in addition to several outstanding highlights, the overall macroeconomic dimension of Africa has indeed slowed down.

The number of middle class consumers in Africa has also increased slowly.

But the absolute number of middle class is increasing. This is a great opportunity.

Data from the African Development Bank show that the number of middle class in sub Saharan Africa has increased to about 350 million, with the largest number of middle class in South Africa, Kenya, Garner and Angola.

In supermarkets in Kenya, the average consumption has increased by 67% to $20 over the past 5 years.

McKinsey, an enterprise management consultancy, expects that the consumption of African households will grow by an average of 3.8% over the period from 2016 to 2025, eventually reaching $2 trillion and 100 billion.

By 2025, the annual household consumption in Africa will reach 2 trillion and 100 billion dollars.

Between 2015 and 2025, household consumption in Africa will grow at an annual rate of 3.8%.

The urbanization process of the African continent will drive economic growth.

The United Nations estimates that between 2015 and 2045, 24 million Africans will enter the city every year.

African supermarket chains, represented by Shoprite in South Africa and Nakumatt in Kenya, are very light on the global retail stage nowadays, but the consumer market they serve attracts the investors who plan to extend their line.

Taking into account the growth potential of African consumer groups, it is reasonable to invest in African supermarkets.

In Africa's big powers Nigeria and Kenya, the informal economy such as the street market still occupies 90% of the retail trade. It can be safely said that the growth of African supermarkets is very large.

A September 2016 report by McKinsey said the supermarket is a local business.

Because market opportunities expand.

There are a few African companies whose revenue growth and profit margins exceed their global counterparts.

From 2015 to 2025, the total household consumption in Africa will grow by about 45%, and the time is right for entering the supermarket industry in Africa.

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