With the rising inflation in the country, Nigerians have resorted to making sure that they work hard in order to feed properly. However, due to low employment rate, people have decided to own their own business.
Supermarket business is not just one of the most booming businesses but also one of the most rampant and popular in the country.
Is it your dream to own a supermarket?
Have you ever wanted to start one, but having doubts about what it would cost you?
Then this article is for you.
A Supermarket is a place where both essentials and non- essential goods are sold. These goods are displayed on shelves, a particular characteristic that differentiates a supermarket from other grocery shops.
A supermarket can either be a Mini or Big supermarket. Whatever one you choose to own depends on your budget.
In this article, we will be discussing separately what it cost to own both a mini and a big supermarket.
Basic Things Needed in a Supermarket
- Cash machine
- Tag machines
- CCTV (Security cameras)
- Shopping carts and bags
- Television(Not mandatory)
- Display chairs
These are the basic things needed in every supermarket. However, if you intend to own a mini supermarket, then you might not necessarily need a security camera, therefore a mini supermarket is much smaller than a big one and is usually referred to as a provision store. Their main item are groceries.
Owning a mini supermarket is way cheaper as you need a small space, fewer shelves compared to a big supermarket.
Let’ s take a look at what it cost to own a mini supermarket
Cost of Owning a Mini Supermarket in Nigeria
Opening a mini supermarket can be a very lucrative business especially if it’ s situated in a good location and far from competitors. A mini supermarket is only slightly different from a big supermarket in terms of space and items.
Usually, customers troop to a mini supermarket to buy items that are not found in an open market.
In Nigeria, you need about 500k to start a mini supermarket business, however this cost depends on your location.
Let’s breakdown the cost;
- Space – 120,000 per annum
- Small generator- 70,000
- Goods – 150,000
- Shelves – 50,000
- Mini Fridge – 40,000
- Staff salary- 30,000
- Miscellaneous – 30,000
Things to Note
The location of your supermarket matters a lot. Do not site a supermarket where there are about two or three other supermarkets. And if you end up doing this, it is important that you diversify that is, you sell what others are not selling, this will help a lot with d growth of the business.
Perhaps, your budget will be enough for a bigger supermarket and you will like to own a store much bigger than a regular supermarket, then let’s take a look at how much it would cost:
Cost of Owning a Big Supermarket in Nigeria
Owning a big supermarket will cost much more compared to a mini supermarket. In Nigeria, to own a big supermarket will cost you about 700k to 1M.
Here’s what you are gonna be needing this for:
- Space – 250,000
- Generator – 150,000
- Goods – 300,000
- Freezer – 150,000
- Staff payment – 50,000
- Miscellaneous – 100,000
Note: Prices are susceptible to change as the rise or fall of dollar to naira exchange rate is likely to affect the economy and therefore, influence how things are being sold in the market.
Things to Consider Before Starting a Supermarket in Nigeria
The site where a supermarket is located is really important. You do not want to open a store where there are lots of competitors as this could affect your sales.
2. Products to sell
The products you sell matters a lot. If your supermarket is in a place where other supermarkets are sited, then ensure that you sell unique products, that is, something different from others.
Examples of products usually sold in a supermarket
- Tissue paper
- Soft drinks
Your budget goes a long way in determining the size of supermarket you can open. A big supermarket requires much more money, hence if you cannot afford it, then it’s best you stick to a mini supermarket.
4. Store size
Just like was discussed above. Your store size is determined by your budget. Big spaces are known to be very expensive, hence choose your space according to your budget.
It is usually advised by the government that business owners register their business. Therefore, make sure to register your business with the Corporate Affairs Commission (CAC).
Owning a supermarket in Nigeria is not as hard as it looks. You can always start small. Some people start with a small shop usually referred to as a “kiosk” by nigerians, hence your budget is of essence.
You can source your budget from places such as:
- Bank loans
- Personal savings
Do not let that dream die, carry out some extensive research or inquire from someone already in the business.
Supermarket business is very lucrative business and one is sure to make lots of money if properly managed.