What the new Benin City Mall represents for Edo – By Chinwendu Obienyi

Over the years, the Shoprite franchise has grown to become a household name in many parts of Nigeria. By developing a chain of brick-and-mortar stores within malls, as well as standalone stores, in 8 major cities – Lagos, Abuja, Asaba, Enugu and Ilorin, to mention a few, the franchise, which is now Africa’s food retail category king, brings everyday household items closer to communities, in a world-class shopping environment and at lower prices.

Since opening its first store in Lagos, in December 2005, 24 more outlets have followed, a showcase of the company’s unflinching focus on growth and push for long-term impact on the Nigerian economy and people. But as with everything, change is inevitable, and for Shoprite Nigeria this came with the acquisition of Shoprite Nigeria holdings by Ketron Investment Limited, a Nigerian-owned firm. Following this move, Ketron subsequently assumed ownership of the retail brand’s entire franchise and outlets in Nigeria, leading to some of the value-adding changes we have seen in the stores recently.

Kicking off from where the previous ownership stopped, Ketron Investment Limited, which at the completion of the acquisition promised rapid growth, has announced an expansion into Edo State, with the plan to establish the first Shoprite outlet in Benin City. This follows on the heels of the announcement of the partnership between the Edo State Government and Persianas Group, a co-investor in Ketron Investment Limited, to develop and construct a mall in Benin City, the Edo State capital, after a 12-year deadlock in the realization of the Benin Mall project.

Speaking on the development, the Governor of Edo State, Godwin Obaseki, said “the project is coming after 12 years of failed attempts. Our struggle to bring Shoprite or a major mall experience to Edo State has been on for more than a decade. There have been several attempts and one of the promises I made was that before leaving office, I was going to make Edo like modern cities in the world, making Edo people experience a retail shopping mall in the state.”

Commenting on the development in a similarly enthusiastic manner, the Chairman of Persianas Group, Tayo Amusan stated; “we are excited to bring Shoprite to Edo State. We have the experience to do business in the state, as we have done JARA stores in conjunction with the Edo State Government.”

Some may wonder what the big deal about this partnership is, given that the establishment of a new business or the expansion of an existing one comes with its twists and turns, but the answer is crystal clear. If there is one thing that remains certain with this type of opportunity, it is the fact that it brings along an increase in economic activity, direct and indirect economic growth, development for the host community, jobs, amongst other things.

For instance, when Apple opened its headquarters in Cupertino, California, back in 1977, the town which was formerly just filled with ranches and vineyards quickly began a transition into a tech hub to cater to its new tech giant resident. For one, the town has had to build more housing units since then as the population of people, many of them moving to work for Apple, has increased over the years. Apple even contributed a staggering $5.85 million to an affordable housing fund, with an extra $75 million donated for the construction of better infrastructure, thus making their presence a net-positive.

This was similarly the case when Amazon took its headquarters to Seattle, from where more than 70% of their staff now work. Their entrance, which saw median income grow, brought about a rise in home values as more people moving needed housing, giving the city a major tax boost from both the increased population and the company.

Already, we have witnessed this sort of growth in the past with the development of Shoprite outlets in other states and this proposed construction in Benin doesn’t look like it would be a different case because of how this model has been successfully executed previously.

A key fact is that the establishment of Shoprite’s outlet in Benin would transform the shopping experience of Benin residents, visitors, and tourists. Currently, residents of Benin City have to visit overcrowded marketplaces and multiple stores to purchase household essentials, but after the launch of this proposed outlet, they would experience a shift from the traditional with access to lower prices and comfortable shopping all in one place – with access to an improved, top-tier in-door shopping experience, one that ranks on an equal standard as any other globally.

Needless to say, Shoprite’s planned entry would be a major game-changer, especially in reducing unemployment, particularly in Benin City. Shoprite currently employs over 2,000 people nationwide, of which 99% are Nigerian nationals. With this development, hundreds of jobs are set to be created, both directly and indirectly, giving residents access to job opportunities along with professional training that the company would provide to those it recruits, which are currently non-existent.

Given the importance of revenue generation in keeping the wheels of any state moving, it is very crucial to note the viability the presence of a Shoprite outlet brings to the proposed Benin City Mall and operators around it, in terms of the access it gives them with the footfall it will attract to this outlet. Over the years, the Shoprite brand has become an opportunity creator and revenue generator, for not just itself, but for other brands in malls where they are situated, even triggering business activity indirectly for transporters and other vendors within the vicinity of those malls. This partnership, therefore, ensures real commercial value with the inclusion of the Shoprite outlet, whose eventual launch of daily business would lay the foundation for the Benin Mall to function at full capacity, thereby positioning the mall as a key business cum tourist attraction of the state, boosting the internally generated revenue of Edo State.

The Benin Mall when fully constructed will also house the Edo State Library, a clear strategic move to preserve the old treasure. This even further highlights the importance that the Edo State Government has placed on education as the relocation of the state library within the newly developed mall will provide a more conducive environment with better facilities including internet services. This implies extra resources for people who would want to carry out research or more intensive learning.

What makes this partnership a masterstroke for Edo State is its choice of partner, Persianas Group, giving the latter’s pedigree in the retail space and its track record of transforming cities into viable business locations. Shoprite’s expansion into Benin City will position Edo as an investor-friendly state. A case in point for this is the establishment of the Abia Mall in 2019 and Shoprite’s entry into the state which drove several other business franchises such Genesis Cinemas and Kilimanjaro to set up shop in the state. With this partnership, Benin City, which already enjoys the reputation of being the fourth largest city in Nigeria is about to experience a move that sets the stage for further investment, helping it to further uphold its status, and even surpass it while contributing immensely to the development of Edo State as a whole.