Digitization will reduce retail industry costs, expert says


FoodCo Nigeria Managing Director, Ade Sun-Basorun, said the use of digital technology will help improve efficiency and reduce operational costs in the retail sector.

A statement from the organization quoted Sun-Basorun as saying digitalization was key to bridging the gap between the supply of modern retail businesses and the demand for services among the rapidly growing country’s young, urban and sophisticated population.

He said: “The global retail industry has been transformed by digitalization and is expected to continue to evolve in the years to come. For example, WalMart, the world’s largest retailer, is dramatically expanding its physical operations to embrace digitalization, and Amazon, the world’s most valuable retailer, is already a digital native. Here in Nigeria, Jumia, the retailer with the highest gross merchandise value, is also a fully digital player. So we can see that digitalization has a vital role to play in the future of retail, both in Nigeria and around the world.

“While we are excited about the potential of technology to facilitate the inclusion of underserved communities and meet the needs of GenZ who are active consumers of digital technology, the reality is that building a sustainable digital infrastructure requires ‘huge investments, whether in developing and operating an effective social media-based sales platform, successfully managing a customer service framework across a variety of digital platforms or, as in the case of the omi- FoodCo channel, seamlessly integrate the various touchpoints with physical stores.”

He added that a 2019 Omnisend study showed that integrating technology into marketing campaigns led to 90% higher customer retention rates and 250% higher engagement and purchase rates.

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