Iogobenz:
Market square is gyrating to replace them when they go
Great news.
The craze for FDI on this particular thread I expected a lot of intellect is alarming.
Is it not these same FDIs people that are putting pressure on the naira now because they are trying to repatriate their funds to home countries?
Now imagine if Nigeria could replace these FDIs with indigenous companies by say 50%.
Don't you know overtime naira will strengthen marginally for sheer lack of dollar demand by these FDIs?
I expected more honestly...
Nigeria is not a country that can't do without FDI in an ordinary retail business.
Make them commot abeg,can't wait for sundry foods to become a fortune 500 company.
Shoprite is leaving,shoprite is leaving...make I begin cry abi wetin?

No serious developing country will go anywhere without FDI.
It's hot money that we need to be careful of, and maybe that's what you mean

einsteine:


I can't remember the amount but apparently it seemed it ran for a month. Also, cashiers share POS at ShopRite. That may make their reconciliation process difficult.

Either way, the major cause of their exit is the uncertainty of the Nigerian economy. When investors bring in FDI, they get a Certificate of Capital Importation and the funds are exchanged at official rate. They do this under the guarantee that profits would also be repatriated at official rate. The CBN has largely reneged on this guarantee.

ShopRite does not own most of their stores and their would be butterfly effects as some of the malls deal with lower occupancy rate. The absence of ShopRite in some of the malls would lead to reduced foot traffic and loss of revenue for other stores in the mall (at least in the short term).

Agreed, CBN has largely reneged on this.
Also agreed, the italicised is the so-called "anchor" tenant concept.

Iogobenz:
Market square is gyrating to replace them when they go
Great news.
The craze for FDI on this particular thread I expected a lot of intellect is alarming.
Is it not these same FDIs people that are putting pressure on the naira now because they are trying to repatriate their funds to home countries?
Now imagine if Nigeria could replace these FDIs with indigenous companies by say 50%.
Don't you know overtime naira will strengthen marginally for sheer lack of dollar demand by these FDIs?
I expected more honestly...
Nigeria is not a country that can't do without FDI in an ordinary retail business.
Make them commot abeg,can't wait for sundry foods to become a fortune 500 company.
Shoprite is leaving,shoprite is leaving...make I begin cry abi wetin?

Sundry Foods will never become a Fortune 500 company. Nobody is asking you to cry. I am going to assume you are running a business on the scale of ShopRite. What are you doing differently in your billion naira business that you think ShopRite has failed at?

I really don't get the craze for economic nationalism. I want best quality at best price. Whether that is produced by Sundry Foods a Nigerian company, AJ East a Peruvian company or CCH, a Greek company does not matter to me. They all employ Nigerians and profits (which is what these people repatriate) are also repatriated by Nigerian businesses. Are you aware that Dangote is opening a Family Office in New York, dedicating a significant proportion of his wealth (made from Nigeria) to foreign portfolio investments?

You talk about FDI putting pressure on the Naira. How are the foreign reserves built? When FDI comes into Nigeria, the funds go to the CBN and they are credited Naira at official rates, that's the only reason they still go back to the CBN when it's time to send back profits. The Chinese and Lebanese Traders in Nigeria change their funds at black market rates and are also perfectly willing to put pressure on the Naira by buying at black market rates when it's time to send money back to their countries.

Cyberknight:


No serious developing country will go anywhere without FDI.
It's hot money that we need to be careful of, and maybe that's what you mean

No,I meant what I said.
We don't need FDIs to come and be selling tissues and tooth paste to us,we can do that.
I would be crazy to condemn FDIs channelled to the right direction of need in this our peculiar economic environment.
I wouldn't want GE,JB,Chagoury,ABB,Diageo,LVMH,Ricard group etc... and co to leave.
But chewing gum FDIs can pack and go
E still dey remain some and they must go still.
Nigeria capacity for retail is increasing,competition is getting stiff and the naira is falling so they can't keep up with stiff competition from indeginous retailers because they have to exchange their earned naira for fx while they no longer make much naira profit due to neck stiff price wars,they now opt to leave and spray propaganda garbage stories as reason for their leave.
We don't care,pack and go!

The reason for the great support for economic nationalism is because Nigerian companies are not doing very well abroad. The day will come when Nigeria starts having companies generating serious revenues abroad and then maybe some Nigerians would understand the challenges faced by foreign investors in Nigeria (particularly those who try to at least do the right thing).

There are legal issues with some of the Nigerian shareholders of the business in Nigeria.

ShopRite is only trying to avoid, the cost of $10 million imposed on the core Investor of the company.

I guess AIC is one of the investors that brought them to Nigeria..

I learnt Broll properties is also a major shareholder and the landlord of some of the properties used by ShopRite

$4.7 Billion is not enough for a company the size of Shoprite to pack out of the country especially since there'd be a payment plan in place.

emmanuelewumi:
There are legal issues with some of the Nigerian shareholders of the business in Nigeria.

ShopRite is only trying to avoid, the cost of $10 million imposed on the core Investor of the company.

einsteine:


Sundry Foods will never become a Fortune 500 company. Nobody is asking you to cry. I am going to assume you are running a business on the scale of ShopRite. What are you doing differently in your billion naira business that you think ShopRite has failed at?

I really don't get the craze for economic nationalism. I want best quality at best price. Whether that is produced by Sundry Foods a Nigerian company, AJ East a Peruvian company or CCH, a Greek company does not matter to me. They all employ Nigerians and profits (which is what these people repatriate) are also repatriated by Nigerian businesses. Are you aware that Dangote is opening a Family Office in New York, dedicating a significant proportion of his wealth (made from Nigeria) to foreign portfolio investments?

You talk about FDI putting pressure on the Naira. How are the foreign reserves built? When FDI comes into Nigeria, the funds go to the CBN and they are credited Naira at official rates, that's the only reason they still go back to the CBN when it's time to send back profits. The Chinese and Lebanese Traders in Nigeria change their funds at black market rates and are also perfectly willing to put pressure on the Naira by buying at black market rates when it's time to send money back to their countries.

You want the best product at the best prices is you being a consumer.That is what consumers do.
Have you thought about the economic impact of having people sell tissues and toilet paper to you and then have to repatriate those profits?
So if I invest $25m as an FDI through CBN and I stay in Nigeria for 20years and repatriate an equivalent of $200m over that timeframe to my country,would you say Nigeria gained from this deal?
Is that not stupidity?
Yes consumers will be happy and feeling irate but what happens to your national wealth?
That is $200m earned from crude oil being wasted on a bullshit retail company being sent back to oyibo land for $25m investment in the name of profit repatriation and then later you will come and complain that Nigeria don't have light.
Where do you want them to get the fx to use to buy the power generating assets from when all of their reserves have almost been depleted by fx repatriation?
Another threat is this nonsense AB-Inbev that came the other day and are already overtaking Nigerian brands.
Make una continue,na all of us dey this shithole.
Dollar go soon reach 5000 with this consumer ideologies,just wait...

Theflint1:
$4.7 Billion is not enough for a company the size of Shoprite to pack out of the country especially since there'd be a payment plan in place.

Many factors responsible are many, they pay rents in dollars to Broll Properties Nigeria. The business will stay. They will sell their shares to the highest bidder and the business will be rebranded.

Iogobenz:
You want the best product at the best prices is you being a consumer.That is what consumers do.
Have you thought about the economic impact of having people sell tissues and toilet paper to you and then have to repatriate those profits?
So if I invest $25m as an FDI through CBN and I stay in Nigeria for 20years and repatriate an equivalent of $400m over that timeframe to my country,would you say Nigeria gained from this deal?
Is that not stupidity?
Yes consumers will be happy and feeling irate but what happens to your national wealth?
That is $400m earned from crude oil being wasted on a bullshit retail company being sent back to oyibo land for $25m investment in the name of profit repatriation and then later you will come and complain that Nigeria don't have light.
Where do you want them to get the fx to use to buy the power generating assets from when all of their reserves have almost been depleted by fx repatriation?
Another threat is this nonsense AB-Inbev that came the other day and are already overtaking Nigerian brands.
Make una continue,na all of us dey this shithole.
Dollar go soon reach 5000 with this consumer ideologies,just wait...

Nobody (other than Nigerian policy) stops Nigerian brands from not doing the same. Foreign goods are cheaper and at better quality than Nigerian products. It has become almost stupid to produce in Nigeria as it is more straightforward to import and trade, after all there are Forex subsidies for that. It is not the fault of FDI. Walmart is the third biggest retailer in Brazil. There is nothing wrong in foreign investors investing in retail. Without the PE Firms that pumped in billions of dollars, Nigeria lacked organized retail spaces.

einsteine:


Nobody (other than Nigerian policy) stops Nigerian brands from not doing the same. Foreign goods are cheaper and at better quality than Nigerian products. It has become almost stupid to produce in Nigeria as it is more straightforward to import and trade, after all there are Forex subsidies for that. It is not the fault of FDI. Walmart is the third biggest retailer in Brazil. There is nothing wrong in foreign investors investing in retail. Without the PE Firms that pumped in billions of dollars, Nigeria lacked organized retail spaces.

How are Nigerian brands not doing same?
Why do you think they are leaving?Don't tell me you bought thesame sales girl story
You should checkout How good NEXT,SUNDRY,EBEANO and co are doing when it comes to pricing.
Peter Obi is one of the cheapest shop I know in Nigeria for groceries.
Now remember these FDI retailers can't sell as cheap as theur indigenous counterparts cos they have a lot of dollar expenses and profits to be paid in dollars.
Now competition has gotten stiff and they are running away.
So how is that not local brands doing the same?
Why are they running?

How many monikers does this guy have? Everyday a new attack

Iogobenz:
You want the best product at the best prices is you being a consumer.That is what consumers do.
Have you thought about the economic impact of having people sell tissues and toilet paper to you and then have to repatriate those profits?
So if I invest $25m as an FDI through CBN and I stay in Nigeria for 20years and repatriate an equivalent of $200m over that timeframe to my country,would you say Nigeria gained from this deal?
Is that not stupidity?
Yes consumers will be happy and feeling irate but what happens to your national wealth?
That is $200m earned from crude oil being wasted on a bullshit retail company being sent back to oyibo land for $25m investment in the name of profit repatriation and then later you will come and complain that Nigeria don't have light.
Where do you want them to get the fx to use to buy the power generating assets from when all of their reserves have almost been depleted by fx repatriation?
Another threat is this nonsense AB-Inbev that came the other day and are already overtaking Nigerian brands.
Make una continue,na all of us dey this shithole.
Dollar go soon reach 5000 with this consumer ideologies,just wait...

The easiest thing is to analyse in Hind-sight........... Please understand at the point of entry, this guys took very hugh risk which our local investors were afraid to take......... Why did any local retailer not morph into the LEVENTIS of old............. Now after our locals have now seen how to swim in the rivers of Shark you now want to chase the Tutor Away..................... Imagine trying to set up a new Bar at a new location, after about three years The Bar starts Booming and You are raking in hugh Cash then the landlord now comes that he now wants to use the property personally, you are evicted then immediately the landlord reopens the Bar in same Location...............Same thing is happening to MTN, DSTV...............................

maishai:
The easiest thing is to analyse in Hind-sight........... Please understand at the point of entry, this guys took very hugh risk which our local investors were afraid to take......... Why did any local retailer not morph into the LEVENTIS of old............. Now after our locals have now seen how to swim in the rivers of Shark you now want to chase the Tutor Away..................... Imagine trying to set up a new Bar at a new location, after about three years The Bar starts Booming and You are raking in hugh Cash then the landlord now comes that he now wants to use the property personally, you are evicted then immediately the landlord reopens the Bar in same Location...............Same thing is happening to MTN, DSTV...............................

Well,no mercy in Capitalism.
They would do thesame to us too like they've been doing for ages.
Ordinary to give mehn visa na problem before na to give us opportunity to deplete and crash their currencies and economy with foolish business.
They've debunked the rumour sha but I really wish it was true

Iogobenz:
Well,no mercy in Capitalism.
They would do thesame to us too like they've been doing for ages.

Then Pray for Good Leaders...............Pray Nigeria Never relinquishes to service its loan Debt to China..................Then We will both understand some fundamentals of Capitalism

maishai:
Then Pray for Good Leaders...............Pray Nigeria Never relinquishes to service its loan Debt to China..................Then We will both understand some fundamentals of Capitalism

Well I don't pray and I'm not a nationalist.
If they seize public assets like NNPC for instance,I will be more than happy so that the naira can crash more for private reasons.
I'm more of a capitalist than a nationalist.
I support fellow indigenous businesses so that my people can be employed which will have ripple effects that will benefit my selfish and capitalist interests.
Not like I am patriotic or anything,no! far from it.

Shoprite cannot leave Nigeria now, they have built a strong market influence in Nigeria, but they need some overhaul. I am a bit pleased that Nigerians are beginning to embrace local products, though at a very slow pace. FG should set up a more aggressive campaign for Nigerians to patronise local products, that seem to be the only way out of our economical woes.

States/regions should compete on setting up local factories and industries, we know there are challenges, but we all must play our role.

Our local market is so big that we don't necessarily need FDI, some FDI could be more of a burden than asset to their host countries.

Few years ago, FG wanted to issue a license to foreign flights to operate local in Nigeria, just imagine how devastating that would had been to our economy and indigenous flights today, thank God for Air peace management and other local airlines who stood their ground against the idea to issue license to foreign flights. At the moment, local flights in Nigeria is now one of the best in Africa, some states are even getting ready to launch their own airlines.

Cyberknight:


A known trick - how did the accountants or control people miss it to the extent that she took 553 million? Cashiers' POS receipts are supposed to be checked after every shift/day (I have a friend who runs a couple of mid-size supermarkets), so obviously if this was truly a method used to defraud a company to a reasonable extent, it was a whole chain of staff involved and not one salesgirl.

Agreed on the optics of their exit from Nigeria - it doesn't look too good from outside, irrespective of whether locals take up the slack or not.

Didn't you read the part where he said it's now an organize crime? Those who are supposed to detect it are also involved in the theft. They all share the loot.

I closed down my business branch in Benin, Imagine staffs, manager, security and truck driver coming together to steal/divert goods in transit. Nigeria is a jungle!

Today, he does have a point about our worship of FDI, a situation where foreigners are able to singlehandedly determine the direction of our policy is dangerous. God forbid this period met us still totally dependent of Thailand for rice, the effects would have been very bad.

Reine22:
How many monikers does this guy have? Everyday a new attack

ahiboilandgas:
i actually saw some staff stealing in shoprite ...a cashier friend (syndicate) walk in make some purchase several small items to make the list long ,then add some expensive items then go to cashier who scan only cheap items then he out.....

There should be a stock count/ audit weekly to prevent heavy looses. Thereafter, set a trap.

CsRockefeller:


There should be a stock count/ audit weekly to prevent heavy looses. Thereafter, set a trap.

in sale we use the ghost shopper

ahiboilandgas:
in sale we use the ghost shopper

Cool. Just like in banking.

Which one be ghost shopper again?

ahiboilandgas:
in sale we use the ghost shopper

CGTN just carried the news that they are really leaving. Interesting days ahead.
How come no one is including the effect of COVID as part of the reasons they may have, as the last straw that broke the camel's back.

Donbrig:
Shoprite cannot leave Nigeria now, they have built a strong market influence in Nigeria, but they need some overhaul. I am a bit pleased that Nigerians are beginning to embrace local products, though at a very slow pace. FG should set up a more aggressive campaign for Nigerians to patronise local products, that seem to be the only way out of our economical woes.

States/regions should compete on setting up local factories and industries, we know there are challenges, but we all must play our role.

Our local market is so big that we don't necessarily need FDI, some FDI could be more of a burden than asset to their host countries.

Few years ago, FG wanted to issue a license to foreign flights to operate local in Nigeria, just imagine how devastating that would had been to our economy and indigenous flights today, thank God for Air peace management and other local airlines who stood their ground against the idea to issue license to foreign flights. At the moment, local flights in Nigeria is now one of the best in Africa, some states are even getting ready to launch their own airlines.

ojesymsym:
CGTN just carried the news that they are really leaving. Interesting days ahead.
How come no one is including the effect of COVID as part of the reasons they may have, as the last straw that broke the camel's back.

Because Covid is temporary and will end someday and the retail industry will bounce back.
So why would any sane retailer sell off his business because of a temporar problem?
Even clubs and lifestyle inclined businesses that has been shut completely for over 5 months aren't folding up due to covid,so why would retail that was only affected by a negligible percentile fold due to covid?
Now you see why no one talked about the "effects of covid".

Okay Sir.

Iogobenz:
Because Covid is temporary and will end someday and the retail industry will bounce back.
So why would any sane retailer sell off his business because of a temporar problem?
Even clubs and lifestyle inclined businesses that has been shut completely for over 5 months aren't folding up due to covid,so why would retail that was only affected by a negligible percentile fold due to covid?
Now you see why no one talked about the "effects of covid".

If you think ShopRite is leaving because of theft, I have dollars to sell to you at 800.

My girlfriend works with Coldstone and they arrest staff daily for theft related issues, but this business has continually turned in profits back to back, and equally promote the few good staffs accordingly.

I'm not saying theft is not an issue, but if Walmart can grow to over 400 stores in Brazil, I don't see why ShopRite will leave over an unfounded 550million bull crap.

Many of their outlets made losses last year,
The economy is unstable......
Government policies are harsh.
Shoprites exit is to prevent foreseeable losses.....

It's not about campaigning to Nigerians to patronize local products, you cannot be telling me to believe in God when you believe in Amadioha, they have to lead by example by using Inosson cars instead of Mercedez Benz or Toyota, they have to patronize Nigerian hospitals instead of going to abroad for treatments, just imagine the number of Nigerians that will go for Innoson car if Buhari starts to use it as his official car today!

Donbrig:
Shoprite cannot leave Nigeria now, they have built a strong market influence in Nigeria, but they need some overhaul. I am a bit pleased that Nigerians are beginning to embrace local products, though at a very slow pace. FG should set up a more aggressive campaign for Nigerians to patronise local products, that seem to be the only way out of our economical woes.

States/regions should compete on setting up local factories and industries, we know there are challenges, but we all must play our role.

Our local market is so big that we don't necessarily need FDI, some FDI could be more of a burden than asset to their host countries.

Few years ago, FG wanted to issue a license to foreign flights to operate local in Nigeria, just imagine how devastating that would had been to our economy and indigenous flights today, thank God for Air peace management and other local airlines who stood their ground against the idea to issue license to foreign flights. At the moment, local flights in Nigeria is now one of the best in Africa, some states are even getting ready to launch their own airlines.

To whom brain is given, sense is expected..must everyone be a noisemaker to show they are regular...you guys should go open a thread for your gibberish and leave our TB thread alone...

ositadima1:


You come here to talk rubbish. I have been on this thread for years now, ur moniker is not even a regular.