How To Start A Successful Supermarket In Nigeria

successful supermarket

Today’s world is filled with people that are eager to unleash their potentials. Today we see sets of individuals that wants the best in life. You can do better with what you are reading now,…‘The Supermarket Business in Nigeria ‘

A supermarket is a self-service shop offering a wide variety of food and household products, organized into aisles. It is larger and has a wider selection than earlier grocery stores , but is smaller and more limited in the range of merchandise than a hypermarket or
big-box market .

STEPS INVOLVED IN STARTING A SUPERMARKET BUSINESS IN NIGERIA

1. CIRCULATION

Circulation is created by arranging product so the supermarket can control the traffic flow of the consumer. Along with this path, there will be high-draw, high-impulse items that will influence the consumer to purchase which he or she did not intend. Service areas such as restrooms are placed in a location which draws the consumer past certain products to create extra buys.

Necessity items such as bread and milk are found at the rear of the store to increase the start of circulation. Cashiers’ desks are placed in a position to promote circulation. The entrance will be on the right-hand side because research has shown that consumers who travel in a counter-clockwise direction spend more.

2. COORDINATION

Coordination is the organized arrangement of product that promotes sales. Products such as fast-selling and slow-selling lines are placed in strategic positions in aid of the overall sales plan. Managers sometimes place different items in fast-selling places to increase turnover or to promote a new line.

3. CONSUMER’S CONVENIENCE

The layout of a supermarket is designed to create a high degree of convenience to the consumer to make the shopping experience pleasant and increase customer spending. This is done through the character of merchandising and product placement. There are many different ideas and theories in relation to layout and how product layout can influence the purchases made. One theory suggests that certain products are placed together or near one another that are of a similar or complementary nature to increase the average customer spend.

This strategy is used to create cross-category sales similarity. In other words, the toothpaste is next to or adjacent the toothbrushes and the tea and coffee are down the same aisle as the sweet biscuits. These products complement one another and placing them near is one-way marketers try to increase purchases. For vertical placement, cheap generic brands tend to be on the lowest shelves, products appealing to children are placed at the mid-thigh level, and the most profitable brands are placed at eye level.

4.THE USE OF COLOR PSYCHOLOGY, AND THE LOCATIONS OF THE FOOD

Even fast food restaurants use colors to draw in customers to get a chain returning consumers. “A mainstay at fast-food restaurants, yellow evokes energy and increases appetite, perhaps explaining why your stomach may start to growl when you pass those golden arches.” These stores use the colors yellow or red to make the consumers feel happy, hungry and evokes energy. Most restaurants and super markets use these colors on their entire logos such as, Food 4 Less, Ralph’s, Habit Burger Grill, or McDonalds. Supermarket’s place all the junk food in the front to make you want to buy all that food. Their goal is to make you fill up your cart more than you have expected it to be.

Throughout the years shopping carts have been made larger so that customers fill up their carts with more food. The layout of the supermarket also allows the customer to buy more groceries. Supermarkets put out their “tasty food” in the front to make you hungry and to make you want more and become addicted to it by making it affordable.

Consumer psychologists suggest that most buyers tend to enter the store and shop to their right first. Some supermarkets, therefore, choose to place the entrance to the left-hand side as the consumer will likely turn right upon entry, and this allows the consumer to do a full anticlockwise circle around the store before returning to the checkouts. This suggests that supermarket marketers should use this theory to their advantage by placing their temporary displays of products on the right-hand side to entice you to make an unplanned purchase. Furthermore, aisle ends are extremely popular with product manufacturers, who pay top dollar to have their products located there.

These aisle ends are used to lure customers into making a snap purchase and to also entice them to shop down the aisle. The most obvious place supermarket layout influences consumers are at the checkout. Small displays of chocolates, magazines, and drinks are located at each checkout to tempt shoppers while they wait to be served.

Things to Consider Before Setting Up a Supermarket in Nigeria
In order to be successful in this business, the following has to be taken into consideration while drawing out a viable business plan.

1. LOCATION

In setting up a business of this nature, the importance of location cannot be over emphasized. In fact apart from finance, it can be regarded as the single most important factor that will determine the success or failure of the business.

This is because the mini supermarket business will hardly have the available funds to afford an elaborate advertisement campaign hence it has to be located where it will be exposed to potential customers.

Again, almost everyone will love to do their shopping in a place that is easily accessible. No one will want to shop in a place where arriving or departing will be a hassle.

In summary, the best place to locate a mini super market in Nigeria is along a busy road or junction where your shop will be exposed to a high stream of consumers.

2. GOODS TO CONCENTRATE ON

Although most super markets normally stock a wide range of items, it is advisable to slightly tailor your stock to appeal to the locality where your mini supermarket is located.

For instance, if you are located in a student environment it would pay more to invest in a bit more of stationary like books, pencils, pens, cardboard paper, markers etc., fast selling and easy to cook items like noodles and pasta, maybe a bit more of personal grooming items like deodorants, body sprays, hair products and medium to low end perfumes.

In such environment, it is better to focus on fast moving consumer goods because most students are relatively low income earners hence they tend to buy only what they need, and in small quantities

3. SHOP SIZE AND LAYOUT

The size of the shop basically determines the layout that will be adopted.
Being a small or medium scale business, you do not want to get a shop that is bigger than your need as this will cost you more than necessary in rent.

Also you do not want one that is too small else the shop will look disorganized and unappealing to customers.

The first step to picking the right size is to have a very clear picture of what is to be displayed and the scale of the shop.

All items on display should be logically arranged in such a way that it is easy for customers to easily locate their desired items. A simple clue is to place like items in the same areas.

4. BUSINESS REGISTRATION

It is important to make provision for the adequate registration of your business with all the local authorities as well as the Corporate Affairs Commission (CAC).

Also ensure that all the applicable taxes and levies are settled.
The reason for this is simply because it would be quite unhealthy for your business to be closed down for even a day not to talk of a permanent closure.

Besides, running an unregistered business is seen as engaging in illegal activities.

5. SOURCING OF STOCK

Have a clear plan on how you will secure a steady flow of stock at an affordable rate, to ensure that your mini supermarket never runs out of items and also secure a good profit margin.

Bulk buying of products is a good way of securing goods at good prices.
Efforts should also be made to purchase directly from the manufacturers who usually give discounts and to eliminate the added middle man cost.

Most popular online stores buys their products directly from Aliexpress in China and get it shipped to their supermarkets here in Nigeria. They make serious gains from each items since they are buying very cheap from there.

6. CONSTANT POWER SUPPLY

Power is a very important component in the setting up of any mini supermarket because some of the items to be sold such as meat and fruits need to be preserved in
freezers , and other items such as drinks also need to be kept cool.
Apart from that, it is important for the supermarket to be kept at a temperature that is convenient and hospitable for customers.
The erratic nature of public power supply means that there will be need to purchase a generating set.

When going for a generator , there is need to engage a professional to find out the expected electrical load in the supermarket.
This will help the owner to select the right capacity of generator to purchase because the price of generator increases with the capacity.

7. CAPITAL

All the above factors depend solely on available capital. Anyone intending to setup a supermarket business must consider the capital involved and also have a plan to source for it . Below is a breakdown of possible start up requirements for a mini supermarket.
As a potential supermarket owner.

You should carry out a small study on the major commodities that are consumed in the area.

So that they can accurately target the intended market.
Having read everything necessary to start a supermarket in Nigeria.
It is time to take action to implement the ideas.

Say no to procrastination and just start it. This is something you can do on your own. But, if you need a consultant to guide you, don’t hesitate to contact us…

Thanks for reading.

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