OmniRetail expands reach with launch of 50th OmniHub Franchise in Lagos

NIGERIA – OmniRetail, a Nigerian B2B grocery buying platform, has opened its 50th OmniHub franchise outlet in Ijora, Lagos. 

This milestone marks a notable step in the platform’s expansion, providing a physical distribution outlet for products purchased via the Omnibiz app. 

The new outlet is part of OmniRetail’s tactic to enhance delivery capabilities and reduce costs in Africa’s fragmented retail market.

A key feature of OmniRetail’s business model, the OmniHub franchise network is designed to tackle the challenges of last-mile distribution, a major hurdle for online retail platforms in Africa. 

With many markets across the continent being trade-centric and geographically diverse, reaching customers efficiently can be costly and complex. The franchise model helps offset some of the capital investment risks while accelerating growth.

This strategy sets OmniRetail apart from competitors like TradeDepot, which operates exclusively online. However, the move also mirrors the approach taken by Jumia, a dominant player in the Nigerian market. Jumia has employed a network of pick-up points to streamline delivery costs and extend its reach to rural and underserved areas where direct delivery services are not feasible.

The OmniHub franchise model is essentially a network of micro cash-and-carry outlets, requiring franchisees to have sites larger than 200m². 

Startup costs for potential franchisees are as low as N5 million (US$3,000), with the potential to earn annual profits ranging from N3 million (US$1,800) to N18 million (US$10,730). 

This low-barrier-to-entry model positions OmniHub as an attractive business opportunity while simultaneously driving OmniRetail’s regional expansion.

OmniRetail’s expansion into physical outlets highlights a broader trend in the African e-commerce space, where online platforms are increasingly relying on brick-and-mortar presence to drive growth, enhance brand visibility, and simplify logistics. 

In a similar move, B2B platform Chari opened two physical stores in March 2023 as part of a plan to establish a network of 100 outlets across the region.