The Development of Retail Chains and Shopping Malls

The shift from informal trade to structured modern retail is accelerating in Lagos with the expansion of regional chains and neighborhood convenience store networks.

Supermarket Chains and Regional Malls

Lagos's modern retail market is dominated by chains such as Shoprite (now operated under license by Persianas Group following the South African group's exit), Spar Nigeria, Justrite, and Ebeano Supermarket, which are opening stores at an increasing pace in regional malls such as Ikeja City Mall, The Palms Lekki, and Novare Mall. These malls combine an anchor hypermarket, international fast food, and a cinema, a format that has proven very popular with the urban middle class seeking air-conditioned, secure spaces for weekend shopping. Commercial land in these areas remains scarce and expensive, which is also driving the development of more compact neighborhood convenience store formats in dense residential areas.

Convergence with E-Commerce and Last-Mile Logistics

Physical retail now has to contend with the rise of e-commerce driven by platforms like Jumia and Konga, pushing more retailers to adopt an omnichannel model combining a physical store with home delivery. This shift is creating growing demand for last-mile logistics solutions suited to Lagos traffic (motorcycle delivery, in-store pickup points), an investment segment adjacent to traditional retail but growing strongly in its own right. Investors focused on commercial real estate now need to build this logistics dimension into mall design from the outset, with dedicated space for storage and online order preparation.

A Fast-Growing E-Commerce Market

Nigeria's e-commerce market generated around $2.92 billion in revenue in 2025, with an estimated annual growth rate of 15-20%, and sector projections anticipate a market exceeding $16 billion by 2030. Jumia remains the clear market leader with around 40% market share and $819 million in revenue generated on its Nigerian platform in 2025, well ahead of Konga, which ranks third behind Ubuy. This momentum confirms the potential of the Nigerian market for online retail players, but also the need for physical retailers to quickly build out a digital offering to avoid losing market share to these platforms.

Shopping Behavior Dominated by Mobile

Smartphones account for 82% of online orders in Nigeria today, confirming a strongly mobile-first shopping pattern that sets the Nigerian market apart from many Western markets still centered on desktop. The add-to-cart rate sits between 9% and 9.5%, but cart abandonment remains very high, around 90-91%, a figure reflecting both persistent online payment friction and Nigerian consumers' caution toward digital purchases. For retail investors, this data underscores the importance of a smooth, secure payment experience, as well as cash-on-delivery options, which remain widely favored by Lagos consumers.