The grocery retail sector continues to feel the consequences of the economic crisis in Gabon, despite recovery signs reported by the IMF. Data from the main retailers and manufacturers shows a decrease of almost 9% in sales with non-food preventing worse results.
The IMF has just concluded its second review of Gabon’s performance in the context of its financial assistance programme. The economy has shown signs of increased stability and economic growth is expected to reach 2% in 2018 – an increase of 1.5% since last year. The second review has stressed, however, that the traditional sectors of the Gabonese economy, namely the commercial sector, were still very weak and that recession is only being avoided by the mineral extraction, agricultural and timber sectors.
Data from the main players in the grocery retail in Gabon (Ceca-Gadis, Gabon Meca, Nestlé Gabon, Bernabé Gabon, Bati-Plus, Business Center, Mbolo, San, Sipagel) shows, in fact, that the sector is still in recession. During the first three months of 2017, the combined sales of the nine leading grocery retailers, manufacturers and importers into Gabon totalled FCFA88 billion ($156.9 million). A year-on-year comparison shows that sales have dropped 8.8% in March 2018, to FCFA80.3 billion ($143.2 million).
The leading players explain the decline in sales with a contraction of demand in the market that has been worsening since 2014. Ceca Gaids, for example – the leading grocery retailer in Gabon, according to the Trendtype Leading Modern Grocery Retailers Dashboard -, has had mixed results in the past few years. The group has stated that the decline in the average value of a basket of goods has pulled results down. The group’s revenues decreased by 7% in 2014 and stagnated in 2015, 2016 and 2017, at FCFA224billion ($399 million). Moreover, its store network decreased by 5%, especially in Port-Gentil, the second largest city in the country.
Despite the recent performance, retailers are confident the economic growth will pick up soon. Additionally, investments in store modernisation and expansion have resumed – especially as Gabon prepares for the announced arrival of retail giants Carrefour and Auchan.
