Xmas #Shopping: #Nigerian Traders, Consumers Groan, Blame Cash Crunch
In place of the usual excitement and buzz associated with Christmas shopping, a gloomy cloud hovered over markets and major stores in Nigeria in the countdown to Christmas, Brand-Health checks revealed.
“Things are generally low-keyed in Abuja,” an Abuja-based working mother, Mrs Nkechi Ilochi, told Brand-Health.
In Lagos, visits to major markets and superstores during the first and second week of December to gauge the pattern of consumer spending in anticipation of the yuletide and the New Year showed a slowdown compared to the previous year.
Businesses bemoaned low human traffic and low patronage while consumers complained of cash squeeze and high cost of wares. For instance, a bag of parboiled rice rose from N8, 300 to N10,500 and N12,000.
The Nigerian economy has been going through labour pains in recent months with inflation and unemployment hitting an all-time high in 11 months. According to the National Bureau of Statistics, inflation has gone up to 9.4% from 8.0 percent in December 2014. About 10,000 jobs were lost in the banking sector alone since 2014 even as massive sack has swept through telecom industry and other sectors of the economy. Many employees in both private and public service are also being owed arrears of unpaid salaries.
Industry analysts say the contraction pains which were triggered by drop in Naira value which followed the drop in oil prices at the international market were heightened by the introduction of the Treasury Single Account (TSA) and suspension of government spending by the President Mohammed Buhari’s administration as part of its anti-corruption policy.
What’s selling, what is not
Although, the lull in sales affected different categories of products , those in the durable product segment like cars and electronics were worse-hit. Clothes/fashion wares and beauty products, though also impacted were not so badly affected. Consumables; food stuffs, food products, beverages and personal care products enjoyed high sales as they are essentials that many consumers cannot do without.
“The traffic into the store is low and we have less big spenders, this year. Everybody is conscious of his pocket. Everybody is complaining that times are hard,” lamented William Nwalibe, the Store Manager, Levi, a foreign clothing brand situated at the Ikeja Mall.
At Party Perfect, a brand that stocks Christmas decorations also located at the Ikeja Mall, a few consumers were observed strolling in and out, some without making purchases.
“The sales have not as much as previous years. The turnout is not as much as it used to be,” volunteered Lilian Uzoma, a sales representative of the decoration company that also stock gift items. Uzoma blamed the low patronage on increase in prices of wares “because of dollar and the economy.”
#Shoprite wore less than a regular look with minimal presence of shoppers. It was not clear whether the low level of activities in the grocery superstore was as a result of the economy or the store was yet to recover from the effect of a temporary shutdown by the State Government over safety issues.
At the popular Balogun, Mandilas and Idumota Markets all situated on Lagos Island, December 2, 2015 seemed like every other day. The vibrancy and crowd surge in the countdown to festivities were missing. Business owners beckoned on passers-by with the desperation of a thirsty child in their bid to win sales. One consumer who would not want to be identified capture the atmosphere thus: “Everywhere is dry. People are not shopping because there is no money. I could only but a few things with the little money I came with,” she revealed.
Marilyn Odofin, a businesswoman and supplier of weave-ons and hair attachments to wholesalers, while lamenting a lackluster Christmas Season, also blamed the Dollar-Naira rate and fuel scarcity for the slow pace of business.
“It is because of the dollar rate and fuel scarcity. I could not stock because wholesalers who I supply to are not selling as they used to. Now, we go to them with our samples begging them to buy unlike before when they come to us with their orders. They also complain that retailers are not selling.”
Electronics superstores are also waiting with bated breath tinged with optimism for consumers that may never come. At LG Shop on Ijaiye Road Ogba, the usual bustle and blare of music during Christmas festivities was missing. The shop was still under lock and key at 9.05 am when Brand-Health visited on December 1, 2015. A security man on duty said that the Store Manager who lives in Apapa area of Lagos was yet to resume work.
At the Cash’n’ Carry Electronic Store on Marina, Lagos, Brand-Health observed very sparse traffic. The Store Manager, simply identified as Mr Bajat, an Indian, complained that though patrons were coming, “but they are not coming like before because of (economic) crisis.”
Mr Patrick Onuora, a consumer. has not shopped for Christmas. He told Brand-Health that he has not done Christmas shopping but would do so once he gets money.
“I have not done my Christmas shopping because there is no money,’ volunteered Mr Patrick Onuora, a media executive. When he gets the money he is expecting, Onuora said that he would adopt a belt-tightening approach in his spending by reducing his purchases to essentials in view of the uncertainty in the economy in the coming year.
“I am going to adjust my spending budget to only important things. Foodstuff is untouchable but (spending on)drinks and gifts will be dropped to the barest,” Onuora suggested.
Other consumers like Mrs Daphne Uduneje and Mr Stanley Okpokpo have learnt the trick of shopping before Christmas. “ I don’t do Christmas shopping. I do my regular shopping monthly. Even for children’s clothes earlier than waiting for Christmas,” said Mrs Uduneje who said that buying things ahead of Christmas help to save cost.
Most business owners were hopeful that sales would improve as Christmas draws closer. “Maybe by the middle of the month,” Lilian willed.
Big brands which play in the food and beverage sub-sector had to resort to ‘special offer’ of their products in micro-packs in the countdown to Christmas. For instance, Nestle put on offer a micro-pack of its cereal brand, Golden Morn(50g) for N50 as against N80 before Christmas while Frisland Wampico, offers its flagship brand, Peak Milk, in N50 sachet in a new campaign it tagged, ‘Wazobia.
Did things improve ? Yes, just few days before Christmas, the pendulum swung in favour of optimistic traders like Lilian who run businesses like Christmas decorations and essentials like food items. The traffic logjam created by last-minute shoppers and motorists almost overwhelmed traffic warders and officials of Lagos State Traffic Management Agency(LASTMA)
Despite the last-minute rush, most businesses and shoppers agree this is the bleakest Christmas since the return to democracy in 1999.