Market Entry Strategies and Performance of Foreign Retail Brands in Nigeria: An Empirical Assessment

This study empirically assesses the market entry strategies adopted by foreign retail brands entering Nigeria and their effect on entry performance outcomes, with evidence from retail executives and market performance data in Lagos and Ogun States, South West Nigeria. Nigeria presents a complex and high-potential retail market characterised by large consumer populations, rapidly expanding middle-class purchasing power, and significant operational and regulatory challenges. Foreign retail brands deploying strategies including wholly-owned subsidiaries, franchise agreements, joint ventures, and licensing face varying performance trajectories depending on strategy-context fit. Grounded in transaction cost theory and the OLI (ownership, location, internalisation) paradigm of internationalisation, the study evaluates how ownership structure, local partner quality, and market localisation intensity determine entry performance. The research employs a mixed-method design with structured questionnaires completed by 80 retail marketing and operations executives supplemented by 20 in-depth executive interviews. Performance outcomes are operationalised through revenue trajectory, brand awareness growth, and market share acquisition rate. Qualitative data are coded thematically, while quantitative data are analysed using regression and ANOVA. Preliminary findings suggest that joint ventures with strong local distribution partners generate superior early entry performance, while wholly-owned subsidiaries perform better in the long run as operational knowledge accumulates. Localisation of product assortment emerges as a critical early-stage success factor. Keywords: market entry strategy, foreign retail, Nigeria, internationalisation, retail performance