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Wholesale Retail Food industry Senegal

The Wholesale and Retail of Food Industry in Senegal 2017

Nina Shand | Senegal | 07 November 2017

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Report Coverage

The report on the Wholesale and Retail of Food in Senegal examines current conditions and developments as well as factors that influence the success of the sector. Profiles are provided for the three major retailers in the country. Included is major French grocery chain, the Casino Group, which is well established and has dominated the sector for some time. Mercure International Group is the franchise holder for the chain in Senegal and currently owns eight large supermarkets. However, its dominance is under threat from Citydia and Auchan who have both, over the past year, opened new stores in Dakar. In a recent development, CityDia standalone supermarkets were acquired by competitor, Auchan but the popular forecourt City Express outlets were not part of the deal.

Introduction

This report focuses on the wholesale and retail of food in Senegal. Strong demographic growth and rapid urbanisation in recent years have transformed the food economy from subsistence farming to one where 45% of its population now lives in cities and buys its food in markets. The country depends on food imports for between 60% and 70% of its food needs, supporting the trend for growing interest from European grocery retailers. Although the majority of food is still purchased through traditional markets, there is an increasing demand for the convenience and variety offered by formal retail and supermarkets.

Strengths

• In the formal sector there are local and international wholesalers and retailers.
• There is increasing investment in food retail and in formal retail space.

Weaknesses

• Difficulty sourcing food locally and imported food is expensive.
• Efficiencies are hampered by poor infrastructure for processing, storage and distribution of food.
• For the formal sector, more than 80% of food is still sold through informal channels.
• Lack of formal retail space.
• The high level of food imports makes the industry vulnerable to international exchange rate volatility.

Opportunities

• Expansion by retailers interested in doing business with Senegal’s neighbours.
• Increased supply of produce for wholesalers and retailers from local suppliers as a result of increased agricultural potential.
• Mobile technology innovation for online shopping.
• Senegal is regarded as one of the most stable countries in Africa and is the second-fastest growing economy in West Africa.

Threats

• Economic downturn.
• International exchange rate volatility.
• Security issues from fundamentalist terror groups active in the region.

Outlook

With a stable macroeconomic climate, inflation expected to remain at approximately 1% and anticipated GDP growth rates of between 7% and 8%, the food retail market in Senegal is likely to be one of the more competitive in Africa. Rapid urbanisation and a growing middle class are likely to result in increased spending on food with some analysts predicting that consumer grocery spending in Senegal will increase at 25% per year in the next few years. Estimates are that the number of urban consumers in Senegal will triple between now and 2050, bringing a market of 13 million people to food retailers and distributors. Although growth in the food wholesale and retail sector will result, the country remains vulnerable to international exchange rate volatility which could impact negatively on the retail industry given its high level of exposure to imported inputs.

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The Wholesale and Retail of Food Industry in Senegal
The Wholesale and Retail of Food Industry in Senegal 2017

Full Report

R 1 900.00(ZAR) estimated $105.19 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 73.63 (USD)*

Table of Contents

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PAGE
1. INTRODUCTION 1
2. COUNTRY INFORMATION 1
2.1. Geographic Position 3
3. DESCRIPTION OF THE INDUSTRY 4
3.1. Industry Value Chain 5
4. SIZE OF THE INDUSTRY 6
5. STATE OF THE INDUSTRY 7
5.1. Local 7
5.1.1. Corporate Actions 9
5.1.2. Regulations 9
5.1.3. Enterprise Development and Social Economic Development 13
5.2. Continental 13
5.3. International 16
6. INFLUENCING FACTORS 18
6.1. Government Initiatives 18
6.2. Economic Environment 19
6.3. Input costs 20
6.4. Roads and Infrastructure 20
6.5. Technology, Research and Development (R&D) and Innovation 21
6.6. Labour 22
7. COMPETITION 24
7.1. Barriers to Entry 24
8. SWOT ANALYSIS 25
9. OUTLOOK 25
10. INDUSTRY ASSOCIATIONS 26
11. REFERENCES 27
11.1. Publications 27
11.2. Websites 28
COMPANY PROFILES 30
DIAGONAL SA 30
MERCURE INTERNATIONAL 32
SENEGAL ATAC SUPERMARKETS - SA 34