Spar plans to open more stores in Nigeria as it bets big on Africa - CNBC Africa

Spar plans to open more stores in Nigeria as it bets big on Africa

Western Africa

by Aviwe Mtila 0

Spar’s newly appointed Managing Director says Africa and Asia are the key drivers for future growth. Photo:

With ten markets on the African continent already, Spar International says it is targeting Nigeria as a key strategic market going forward. With a presence in 40 countries worldwide, Spar’s newly appointed Managing Director says Africa and Asia are the key drivers for future growth.

The former Managing Director of Dutch retailer Spar International said it has identified the major potential for growth for the brand in Africa five years ago. With batons changed, the company's new Managing Director, Tobias Wasmuht, who was appointed in January 2016, spoke to CNBC Africa about the company’s Africa retail opportunity.

READ THE HIGHLIGHTS FROM THE CONVERSATION BELOW OR WATCH THE VIDEO:

“We’re very excited about Africa because of its huge potential. Already today 8 per cent of our global turnover, which is 33 billion Euros, 18 per cent of that comes from Africa. We have a presence in ten markets here and we’re growing strongly. We see particularly also Nigeria as a key strategic market going forward because of the sheer scale in growth in the middle classes here.”

-          Tobias Wasmuht, Spar International Managing Director.

“If I zoom into Nigeria, you have the middle class population here defined by incomes of over 7500 US dollars belonging to over 40 million people in Nigeria alone. That in its size is a huge market. In South Africa we have a population of over 50 million. In that country we have 5000+ modern trade supermarkets. Take that to Nigeria and you see how still fragmented the modern food retail segment is.”

-          Tobias Wasmuht, Spar International Managing Director.

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“Nigeria in particular we want to scale up quickly. We’ve seen great development this year so as we stand now we have nine Spar stores operating in Nigeria. That’s our footprint as we stand at the moment but we’re growing quickly. There’s another three coming online before the end of the year and we’re looking that by 2018, we want to be in a position to have 25 large scale Spar superstores up and running.”

-          Tobias Wasmuht, Spar International Managing Director.

“We see a growth potential outside of Lagos, Abuja, Port Harcourt, there are many opportunities here which we continue to seek.”

-          Tobias Wasmuht, Spar International Managing Director.

“Regarding our model, we have a multi-format strategy so we operate large format stores but we also have the opportunity in future to bring in smaller formats. That is to also cooperate, like we do in many markets, with entrepreneurial retailers to bring them into our group.”

-          Tobias Wasmuht, Spar International Managing Director.

“In terms of our partnership model, we work with licence partners internationally. We have a presence in 40 countries. The model is the same and has been for relatively five years. In Africa our largest partner is Spar South Africa group that is an entity which is listed on the Johannesburg Stock Exchange and received the licence from ourselves. Here in Nigeria we’ve partnered with the Artee group.”

-          Tobias Wasmuht, Spar International Managing Director.

“Recently, only last year we headed into Cameroon, again good demographics, good growth opportunities, so we’re consistently strong on Africa. My own personal background was I’ve been in Asia for the last ten years, in the emerging markets there. As Spar internationally, when we’re looking at developing emerging markets, Asia and Africa are the two key drivers for our future growth. We’re very confident on that and that’s where our resources will go.”

Tobias Wasmuht, Spar International Managing Director.

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