Alerzo seeks to transform the informal retail sector – TechEconomy Nigeria
The leading business-to-business (B2B) e-commerce platform, Alerzo, has called for the transformation of informal retail sector operations in the country.
The e-commerce platform argues that serving informal retailers, especially those in underserved areas, and helping them use technology will better position them to run profitable businesses.
Alerzo Group CEO Adewale Opaleye pointed out that informal employment, according to International Labor Organization (ILO) statistics, accounts for more than 80% of total employment in some Sub-Saharan African economies, while that informal production accounts for more than 50% of the region’s official gross domestic product (GDP).
He also noted that apart from the informal sector which accounts for 50% of the country’s GDP, the Nigerian food and grocery retail market had total revenues of $45.7 billion in 2020, which represents a compound annual growth rate of 5.8% between 2016 and 2020.
Regarding the importance of informal retailers to manufacturers, distributors and consumers, Opaleye said that prioritizing the sector and addressing the challenges associated with it will boost the Nigerian economy.
The Alerzo boss, who reiterated the tech company’s mission to leverage technology to transform the informal retail sector in Nigeria, highlighted the particularity of some of the services that Alerzo provides to informal retailers on its platform.“On our Alerzoshop retail app, we offer a huge assortment to our customers and we offer free shipping in the 13 cities where we currently operate. We are changing the landscape for them (retailers) through on-time delivery.
”For two years, we have been delivering free of charge to informal retailers. With our delivery services, retailers save time, energy and resources that they would otherwise have spent on restocking. These benefits have enabled 85% of our retailers to reduce their replenishment trips to zero from two to four times per week,” Opaleye said.
Moreover, thanks to its Alerzopay PoS terminals, informal merchants benefit from an additional source of income in addition to the ease of doing business and the profits they obtain as subscribers on the e-commerce platform. .
An informal Calabar retailer, Ruth Okon, who said she finds it easy to order goods and have them delivered by Alerzo, said: “Alerzo’s presence has helped a lot. They deliver my goods quickly to my store. When I order goods for my grocery store, they receive the goods without wasting time. I am very happy as I find it convenient to get goods from Alerzo.
In Kano, 26-year-old Shuaib, who has been involved in his family business since he was 11, said maximizing support from Alerzo has helped him easily access products as he plans to move on. open a second point of sale.
Likewise, Aliyu shared how knowing Alerzo saves her the stress of visiting the open market to restock.