Ebele Enunwa is the Founder and Chief Executive Officer of Sundry Foods Ltd and Sundry Markets Ltd, providing employment to thousands of Nigerians and generating millions of dollars in revenue, every year. And by the sheer efforts of people like him, the retail and food space has been reshaped from the early 2000s, when foreign brands held sway in the Nigerian market. In this interview with PAUL OGBUOKIRI, he expresses the vision of seeing

What is this story about taking a 70% pay cut to become an entrepreneur?

On moving to Port Harcourt as a regional manager with Stanbic IBTC, I found the city to be lacking in sufficient fast food options. There was just one major brand – Mr Biggs, and other smaller brands. And with my experiences, it did not seem to me that these brands could satisfy customer needs in the city. I moved to Port Harcourt as a banker and at the time, there was only Mr Biggs and another smaller brand Kingfisher operating in the fast food business. Particularly on festive days, there were always long queues. There was a Valentine’s Day I went there, and the queue went all the way from the counter, out of the door up to Rumuola roundabout.

It was clear to me that the people in the city were not being offered the best service, but beyond that, the existing businesses did not have sufficient capacity to meet the needs of Port Harcourt. So, we thought we needed to get into the space so that we can provide a better product, better service and give customers options. I was a banker who was already some- where up the ladder, I was well paid and leaving the job to go start a business was equivalent to taking a 70 per cent pay cut in my monthly salary, but I was not deterred, so I went ahead. Sundry Foods Limited was incorporated in 2003 and opened its doors for business in September 2004.

I raised capital through equity and debt and was able to develop a chain of retail food service outlets including Kilimanjaro, Nibbles Bread, Pizza Jungle, Kili grills, and SFS – an industrial and events catering service provider. The business has over 100 out- lets and employs thousands of staff across these outlets.

What are the biggest challenges for modern retail chains to reach meaningful scale in Nigeria?

The biggest challenge to reaching scale is a lack of quality retail space due to limited investment by property developers. We have had to build our own retail spaces to address the lack of supply, rendering it difficult to scale since it entails operating beyond one’s core competency. Manpower issues are also a constraint because of the challenge of identifying experienced labour to work in modern stores. This means that we have to develop our own manpower as well, and at a pace that comports with our growth trajectory. A third hurdle to reaching scale is the local supply chain, the growth of which is limited because of infrastructure issues, including the import regime, the naira’s devaluation and foreign currency shortages, making it difficult for manufacturers and importers to secure raw materials and merchandise.

To what extent has an understanding of the local market catalysed the growth of local retail players?

Understanding the nuances of the local market is critical. Retail is an inherently localised business, as proven by the dominance of indigenous brands such as Walmart in the US and Tesco in the UK. Local retailers outperform foreign retailers at a ratio of 90 to 10, with traditional retailers such as open-air markets accounting for 95 per cent of the sec- tor. This dominance is informed by an acute knowledge of their customer base, including an awareness of any changes in consump- tion patterns, as well as an understanding of how to navigate the complexities of the country’s fragmented retail value chain. Access to capital and technology constitute the competitive advantage of foreign retailers, given their proximity to international markets. However, excess capital carries with it significant business risks. The best approach for foreign investors looking to break into the Nigerian retail market is to partner with a local player that already has a proven track record of success.

In what ways can modern retailers induce growth by targeting customers beyond tier- one cities?

Nigeria represents a substantial market given its landmass and population, which is spread across 36 states. Focusing on customers in Lagos and Abuja is reductive since both cities account for less than 10 per cent of the country’s population and 10 per cent of its GDP, leaving 90 per cent of the potential retail market underserved. Lagos in particular is limited as an attractive market due to the high level of saturation. Meanwhile, there are major industries in several cities across the country that have residents with significant spending power and requiring retail services who have largely been over- looked. The potential for growth exists far beyond the traditional demand centres.

How would you assess the impact of e- commerce on the country’s retail sector?

Commerce has expanded the physical reach of traditional brick-and-mortar stores without the associated costs, especially if they have a well-designed e-commerce platform. E-commerce has affected specific retail categories, such as travel and electronic consumer goods, due to superior efficiency and convenience. While e-commerce may be conducive for customers in need of particular fast-moving consumer goods, its overall impact on grocery retail has been negligible, partly due to the difficulty of replicating the physical experience, as the emotive and tactile experience of physical retail often translates to elevated sales. Nevertheless, digitisation has been critical to retail for decades. Harnessing the power of data is likely to be the foundation of the next frontier in retail transformation.

This requires an understanding of how to capture, interpret and use data responsibly to create a unique consumer experience. We have seen the use of data evolve from facilitating basic enterprise functions, such as tracking sales and inventory, to boosting predictive capabilities to meet the demands of customers.

Can we talk about the Marketsquare and the vision behind it?

Yes. It was started in 2015 with the registration of Sundry Markets Limited. This was to be the umbrella brand to pursue a new vision of redefining the shopping experience for Nigerians. From our times of growing up, we have always had to go to the markets to buy any- thing we need and these markets are often not in the best of hygienic conditions, neither was there any guarantee on quality. Sundry Markets Limited is the vehicle for us to redefine this experience for Nigerians so that they can shop for groceries and home supplies in a clean marketplace where quality is guaranteed. From a single store in 2015, Marketsquare started providing a wide variety of prepared and packed food, fresh bakes, fresh produce, groceries, wines & spirits, toiletries, baby products and small domestic appliances, to serve the daily needs of individuals, house- holds and corporate organisations.

Marketsquare offers a fulfilling shopping experience providing a wide variety of products and a delightful selection of sensations with everything within reach. The tagline – find more, pay less – is a promise of our unwavering desire to get the best quality products to the customer at the lowest prices we can find.

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