ANALYSIS OF SHOPPING MALLS IN NIGERIA AND SECURITY ISSUES

Malls were formally seen as the exclusive preserve of the rich, but in the last few years, the
construction of The Palms, Apapa Mall, Citi Mall and Ikeja Mall all in Lagos State, with other similar
outfits springing up all over the country, the mentality has changed.
The economic down turn of the 90s beginning with the fallout of the Structural Adjustment
Programme (SAP) which reduced drastically the patronage of the middle class alongside their
foreign counterparts of the shopping malls. This impacted negatively on the fortunes of the malls,
resulting to the forceful closure of most of them.
Apart from the reduction of the middle class in the 90s and the departure of foreigners as a result
of the down turn of the country’s economy, the influx of fake and substandard products into the
country also sent many shopping mall operators out of the country as the prices of quality wares
sold at the malls could not compete with the price of substandard products sold in the open
markets which were in high demand.
Some foreign investors who heeded the Federal Government’s calls in the early 2000s to invest in
the country also delved into retail business with international retail stores including the very popular
South African owned Shoprite which is fast spreading to all the major cities in the country.
Thus, since the beginning of the late 2000s, there has been an upswing in the number of big
supermarkets and shopping malls across the country owing to the success of Shoprite.
The recent rise in the number of shopping malls across the country is attributed to the growing
numbers of the middle class and the economic reforms of the democratic government since 2000.
With many Nigerians experiencing economic prosperity across the sectors, there has been a high
patronage of shopping malls across the country to meet their changing tastes. Thus, with a
growing middle class, rising economic prosperity and changing demographics, retail malls are daily
springing up in major cities across the country.
People patronize Shoprite and some other shopping malls because of the quality of the products
they offer. In addition, the ambience surrounding the malls, the functional air conditioners and the
arrays of products in the malls are difficult to resist, as compared to the dirty nature of many local
open markets. The human traffic that patronizes these shopping malls now attracts other related
business and lead to strategic partnership with international brands.
As regards payment, alternative channels (i.e. Point of Sales (POS), Credit and Debit cards, Pay
Attitude, Mobile Money etc.) exists, therefore, the lack of cash does not prevent one from buying
from the shopping malls as against the local markets that deal mainly on cash.
Despite the good sides of the shopping mall, the negative side is the issue of security threat, as
shopping malls have become prime targets for terrorists’ attacks, as was witnessed in Kenya and
some countries in the past. However, security in Lagos has been relatively satisfactory and we
expect this to continue to improve.
It is also thought that shopping malls pose a major threat to jobs in the retail sector of the economy
as the traditional outlets or stores cannot stand the competitive strength of the big shopping malls,
especially in the cities.
Traditional retail outlets within three or four kilometers radius of these shopping malls stand the
risks of closing shops because of the competitiveness issues. Any small retail store close to shopping
malls will struggle to survive, as many people will prefer to go to the bigger shopping malls.”
However, on the flip side, shopping malls provide jobs for a large number of people thereby
reducing the rate of unemployment in the Country.
 SWOT and PEST Analysis
SWOT and PEST analysis of shopping mall named Gbagada Shopping Mall which is to be located
along Gbagada Express Way (beside UPS), Gbagada, Lagos.

SWOT ANALISIS:
An analysis of Strengths, Weaknesses, Opportunities and Threats in the internal environment of the
organization is known as SWOT analysis. These factors are under control of the organization.

S (Strengths) W (Weaknesses) O (Opportunities) T (Threats)

1 Good infrastructure Lack of support Faster market Changes in

from government growth than before government
policies

2 Easily accessible/ Good location Funding paucity Strategic partnership New competitors
with international
brands

3 High growth via increased Lack of advanced Possible concessions Changing market
rental space (expansion is very technology from Government taste
possible)

4 Ample parking space Security -

5 All sorts of marketable products - - -

and services will be available

6 Proper management - - -

7 Income generating potential is - - -

very high for all parties
(i.e.property owners and Shop
owners)

Strengths:
This mall will have a good infrastructure and in a very accessible location which will attract many
customers. There will be 24 hours A.C and electricity inside the mall, well managed environment
and all sorts of goods are available inside the same roof.

Weaknesses:
To run the organization smoothly there should be need for support from the government e.g.
traffic management, provision of social amenities.
Opportunities:
It provides lots of opportunities because of its strategic location. It is close to 4 tertiary institutions,
namely: University of Lagos in Akoka, Yabatech in Yaba and Lagos State University in Anthony.
It is in the midst of populated middle class environment i.e. Ilupeju, Gbagada Phase 1 and Phase 2,
Palmgrove, Yaba, Akoka, Anthony Village, Maryland, Ifako-Gbagada, Somolu, Bariga, Iyana Oworo,
Oshodi, Isolo etc.
The locations will afford people returning from work via 3rd mainland bridge enroute Ikeja to stop
by and do their shopping before heading home, especially on Fridays. The location is likely to
record off-peak periods between 7am to 3pm Monday to Fridays, and peak period of 4pm to 12am
weekdays and all through the weekends.

Threats:
Changes in government policies e.g. fluctuation in the tax rate.
New competitors.
Security: as shopping malls have become prime targets for terrorists’ attacks, as was witnessed in
Kenya and some countries in the past. However, there are Police posts in Palmgrove, Anthony,
Gbagada (Charly boy) which are within close proximity to the proposed site of the mall.
In addition, we shall employ the services of private security outfits to be on guard round the clock
within and around the mall.
PEST ANALISIS:
An analysis of Political, Economical, Socio-cultural and Technological factors in the external
environment of the organization is known as PEST analysis. These factors are not under control of
the organization.

S/N P (Political) E (Economical) S (Socio-cultural) T (Technological)

1 Political ideologies Economic condition Obeys and fulfil Fails to access the
social and cultural newest technology
norms and value

2 Government term Economic system - Sufficient level of

and change technology

3 Wars and conflicts Price fluctuation - Good internet

infrastructure

4 Environmental issues Globalization - -

Political:
The political ideologies as democracy, socialism, communism, Maoism, etc. also affect this
organization. As we know that every political parties whenever they are in a government tries to
implement their ideologies which directly affect the environment. This factor affects the whole
economy and not just the organization.

Economical:
Economical factor is one of the external factors of the environment. It includes different factors like
GDP, national income, per capita income, export and import, purchasing capacity, inflation rate,
etc. These factors give shape and form to the development of the economic system of the country.
Due to the increasing impact of globalization and liberalization, the Nigerian economy might shift
towards an open market economy. This may result in price fluctuation in the mall.

Socio-cultural:
The organization/ mall is a social unit as it is established within the society by the people, for the
people of the society. We ensure we obey and fulfill social and cultural norms and value. We will
manage proper product quality according to the ever changing life standard of the people and also
following and maintaining religion and ethnical value.
Technological:
The field of technology is very dynamic as there is a continuous up-gradation in the existing
product due to various innovations and renovation. The mall will upgrade on existing technologies,
including various machineries and equipment, computer technologies, etc. In order to add its
strength by producing extra beneficial product and services in terms of quality, uses, etc.

Prepared by
Olumide Holloway
For: i2X Media Company Limited