Business South Africa's Woolworths quits Nigeria - Reuters

[curator]

South African retailer ends Nigerian ambitions

• High rents, duties weighed on business
• Rich Nigerians prefer shopping in London (Adds background, details)

By Tiisetso Motsoeneng

JOHANNESBURG, Nov 6 (Reuters) - Upmarket South African retailer Woolworths pulled the plug on its Nigerian business on Wednesday, citing high rents and duties as well as the difficulties of marketing to consumers in Africa's most populous country.

Although the Cape Town-based firm focused on the costs of doing business in Africa's biggest oil producer, analysts said the more basic issue was marketing to wealthy Nigerians who are mobile and brand conscious - and Woolworths is not a big brand.

Source: Reuters
Read more:
http://www.reuters.com/article/2013/11/06/woolworths-nigeria-idUSL5N0IR3K120131106

 

[curator]

"They are not viable. A lot of people are coming in: Burberry, Tommy Hilfiger. These are up- or mid-market brands that Nigerians know," said Bismarck Rewane, head of Lagos-based consultancy Financial Derivatives.

Any lessons here for anyone else?

 

[leo]

South African retailer ends Nigerian ambitions

• High rents, duties weighed on business
• Rich Nigerians prefer shopping in London (Adds background, details)

By Tiisetso Motsoeneng

JOHANNESBURG, Nov 6 (Reuters) - Upmarket South African retailer Woolworths pulled the plug on its Nigerian business on Wednesday, citing high rents and duties as well as the difficulties of marketing to consumers in Africa's most populous country.

Although the Cape Town-based firm focused on the costs of doing business in Africa's biggest oil producer, analysts said the more basic issue was marketing to wealthy Nigerians who are mobile and brand conscious - and Woolworths is not a big brand.

Source: Reuters
Read more:
http://www.reuters.com/article/2013/11/06/woolworths-nigeria-idUSL5N0IR3K120131106

View attachment 2270

Any lessons here for anyone else?

I actually saw this coming, they are not doing well in Nigeria and also in Ghana plus the qualityof some of their clothes hmmmmmmmm