globe retail outlook data

 

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Retail By City

LagosNigeria

City not ranked

City Overview

The Nigerian retail sector has distinguished itself as a top tier segment over the past few years. Growing disposable income, increasing urbanisation and a rising population helped to fuel the demand for retail and for retail space pre-economic crisis of 2015/2016. However, activity has slowed in this market albeit at a less dramatic pace relative to Abuja and other core markets.  One of the demand drivers pre-recession was seemingly rapid expansion of the Nigerian middle class, which are predominantly young professionals in urban areas, mainly in Lagos. The recession highlighted the inadequacy of this new demographic to withstand external shocks to the economy.  Mass migration from other cities, however, highlights a potential recovery and growth of retail in the medium to long term, conditional on certain factors.

The Palms in Lekki, Lagos, which opened its doors in 2005, was one of the first formal malls in the country with a strong balance of local and international brands. The mall is located in proximity to the high-income residential population in Lagos. Another successful formal mall in Lagos is Ikeja City Mall, which is the largest mall in Lagos and located in the densely populated Ikeja.

Since 2011, over 50,000m² of additional retail space has been delivered to the market with the opening of the likes of Festival Mall, Circle Mall, Maryland Mall and Novare Lekki Mall. Whilst this has reemphasized Lagos’s status as the prime retail hub in Nigeria, this oversupply coupled with the wider market challenges has affected the performance of these malls following their opening. However, it is important to note that despite the challenges facing the market in the immediate term, many players in the retail sector, including developers and retailer, still keep Lagos in view over the long term as a market with potential for growth and good investment returns in light of a more favourable macroeconomic environment.

Things to do

See

Work

Heritage Place, Alliance Place, The Wings, BAT Rising Sun


Rest

Lekki Conservation Centre, Eleko Beach, Ilashe


And be seen

Eat

South, Orchid House, The Harvest, Arabesque


Drink

Maison Farenhiet Hotel, Backyard, RSVP, The Boat club


Be Merry

Bottles on Wednesday Nights, Taco Tuesdays - La Padrino


Other Cities in Nigeria

Contact Us

Bolaji Edu
6th Floor, ED Building, 47 Marina, Lagos
+234 1 270 1890 | bedu@broll.com.ng