How digitization can drive the growth of corner shops in emerging economies

Corner shops across Africa have long been regarded as vital sources of employment and essential pillars of the economy. Despite their significant contribution, the $900 billion industry is often overshadowed, with informal retailing accounting for 67% of total retail across key markets such as Kenya, Nigeria, and South Africa. In a recent interview on CNBC Africa, Efayomi Carr, Principal at Flourish Ventures, shed light on the pivotal role of digitization in driving the growth and sustainability of corner shops in emerging economies. Carr's insights highlighted the untapped potential of leveraging digital tools to enhance financial capabilities and propel these local stores into a thriving future. The conversation delved into the innovative strategies that can empower corner shops to thrive amid a competitive landscape, where big-box retailers and online giants are gaining momentum. By embracing digital solutions in buying, managing, selling, and finance, corner shops stand to boost their top-line sales by 60 to 100%. The market dynamics are evolving rapidly, presenting challenges and opportunities for local stores to differentiate themselves and cater to changing consumer preferences. Customer service, trust, and proximity emerged as the cornerstones of the enduring appeal of corner shops, attracting loyal patrons who value the personalized touch and convenience they offer. Despite the market saturation and growing competition, corner shops have a unique advantage in their close-knit relationships with customers, enabling them to extend credit, tailor offerings, and adapt swiftly to meet evolving needs. The resilience of corner shops during challenging times, such as the COVID-19 pandemic, underscored their significance as essential community hubs that consumers rely on for daily needs. The transformative potential of digital technologies in revolutionizing corner shops is evident in success stories like Maxub, a B2B commerce app that streamlines operations, enhances inventory management, and provides financial services to store owners. With a focus on simplifying processes and supporting profitability, Maxub has garnered positive feedback from users who laud its time-saving features, revenue-boosting capabilities, and cost-reduction benefits. As corner shops embrace digital tools to navigate the changing retail landscape, there is a growing optimism about their ability to thrive and evolve in tandem with technological advancements. The convergence of traditional retail with digital innovation is reshaping the narrative around corner shops, positioning them as trusted community pillars poised for sustainable growth in emerging economies.