Purpose of the research: This study investigated the impact of formal shopping centre development on informal and small businesses in Lagos, Nigeria. Methodology: Semi-structured interviews with the business owners as well as shoppers were conducted. The population size included 15 informal and 15 small business equally distributed between five different shopping areas including the areas around the two major shopping centres in Lagos. Interviews were also done with a hundred shoppers around these two centres. The collected data were analysed using content analysis method.

Findings: Most of the informal and small businesses are struggling to survive. Different strategies have, however, been developed for competing against the giant retailers in the shopping malls. The different types of goods sold in shopping centres and in informal traders were characterised and the reasons for the support of these respective businesses were identified. Practical implications and Conclusions: While the development of shopping centres may be of benefit to the community it serves, the valuable role of informal trading in developing countries should not be ignored.