Supermarket Business Plan

Nigeria being the most populous black nation with a population of over 190 Million individuals, this population is expected to rise to 250 Million by 2050. Every business minded individual knows that a rise in population means improved income.

This increase can also be seen in the supermarket line of business as we can find supermarkets in almost every neighbourhood in big cities all over the country with the only differentiating factor among these supermarkets being the size, number of commodities sold, quality of services etc. A large number of these factors are dependent on the scale of the supermarket which in turn boils down to the capital at the disposal of the entrepreneur. Many individuals living in the city depend on supermarkets for most of their daily needs as these supermarkets have in stock many products ranging from cooking ingredients to skin care products amongst others.

Lagos accounts for the highest number of supermarkets in Nigeria and also the highest patronage. This is not surprising considering the high population of the state as it boasts of the highest population in the country with an estimated population of almost 20 million inhabitants and also has the highest inflow of people and products on a daily basis. These figures has caught the attention of big supermarket franchise all over the world as we can see top supermarkets like Shoprite having stores all over Lagos and other states in the country. Study shows that Nigerians will be spending about N13.9 trillion on non-durable goods in 2020.

Usually, supermarkets are run by entrepreneurs who start the venture and sometimes these ventures are leased out to be run by other competent individuals. In a bid to stay afloat of the industry and attract more customers some supermarkets have proceeded to selling non-conventional supermarket stock like electrical appliances, medicine, clothes and clothing materials, etc. Statistics shows that Lagos has the highest number of supermarkets in the country. Regardless of this statistics, it is evident that the population of the city far outweighs the number of supermarkets. There is still a huge gap between the number of supermarkets and the population of the city. This shows that there is a major need for more supermarkets to set up in different parts of the metropolitan city.

Table of Contents

i.    Overview5

1.0 Executive Summary5

1.1 Benefits6

1.2 Objectives6

1.3 Vision7

1.4 Mission7

1.5 Keys to Success7

1.6 OPPORTUNITY7

1.7 KEYS DRIVERS8

1.8 Guiding Principles8

2.0 Company Summary8

2.1 Company Ownership9

2.2 Location and facilities9

2.3 The Value Proposition10

2.4 Start-Up Summary10

Table: Start-up Funding11

3.0 Product Description11

3.1 Future Product12

4.0 Market Analysis12

4.0.1 Market Summary12

4.0.2 Market Trend13

4.0.3 Marketing Plan13

4.1 Target Market14

4.2 Industry Analysis14

4.3 Classes of Retail Outlets in Nigeria15

4.4 Challenges Facing the Retail Industry17

4.5 SWOT Analysis18

4.5.1 Strengths18

4.5.2 Weakness18

4.5.3 Opportunities18

4.5.4 Threats18

4.6 External Environmental Analysis18

4.7 Competition and Buying Patterns19

4.8 Marketing Strategy19

4.9 Publicity and Advertising Strategy19

4.10 Sales Forecast21

5.0 Strategy and Implementation Summary22

5.1 Competitive Edge22

6.0 Management Summary23

6.1 Organizational Structure23

6.2 Management Team23

6.3 Personnel Plan26

7.0 Financial Plan27

7.1 Breakeven Analysis27

7.2 Projected Profit and Loss27

7.3 Projected Cash Flow29

7.4 Projected Balance Sheet31