World Retail Voice Blog Post
International expansion into Africa
Africa has seen an influx in international brand heavyweights. In the last two years, international brands including Zara, Top Shop and River Island have entered the local retail market.
There is a strong investment case by international brands into the continent, as they view Africa as having growth potential. As far as retail sales for higher priced goods goes, Luanda in Angola, Lagos in Nigeria and Nairobi in Kenya are becoming attractive markets for retailers. These markets may arguably unseat South Africa as a destination for international retailers looking for exposure on the continent. Once Nigeria’s retail infrastructure is entrenched, this may give international retailers more options beyond South Africa. However, despite the possible investment decline status of South Africa, there is no doubt it has a strong retail pedigree.
However, what is the impact for local independent retailers with the success of expansion strategies of international brands? How can local retailers capitalise on their existing market presence and in-depth regional knowledge and insights n flourish in this competitive environment ?