One of Nigeria’s long standing conglomerated listed on the Nigerian Stock Exchange (NSE), Chellararns Plc, has signed a joint ‘ business partnership with Woolworths of South Africa to establish Woolworths Retail Stores Nigeria Limited.

Both firms would be injecting N 700 million into the Nigerian economy through the Nigerian economy through the new company that will begin with three stores in December. The three stores would be located in Palms Shopping ‘Mall, Victoria, Ikeja City Mall, Lagos and Polo Park Shopping Mall. Enugu respectively.

Woolworth is a South Africa with large chains of retail stores and has 350 stores and turnover of $4. billion.

On the other hand, Chellarams, which was established in Nigeria in 1923. is a diversified organization with operations in wholesales  & distribution, manufacturing. engineering, tourism, quick-service restaurants and power generation.

The joint venture was consummated last week with the signing of the memorandum of understanding in Lagos.

Speaking about the deal. the Woolworths Divisional Executive, International, Mr. John Fraser and Group Managing Director of Chellarams Mr. Suresh Chellarams, expressed confidence in-the joint venture.

“Our joint venture means we can deliver to customers the best retail offering 1 tailored to local market needs. Our partners bring knowledge of local trading conditions and we bring the quality, value, innovation and fashion our South Africa customer know and appreciate. It is the best of both worlds, Fraser said.

He added that the company was confident of its investment in Nigeria and were very pleased with the growth prospects of the Nigerian market.

The country  has a large population with significant and growing middle-and-upper income groups. We have found the right partner in Chellarams to grow the Woolworth brand in Nigeria.” he stated.

According to him. joint ventures with local partners, such as Chellarams were the new business model for Woolworths expansion  plans in other African countries “We have moved away from the franchise model we had in some African countries. It is not only a better profit model for Woolworths, but it is also better for customers,” Fraser said.