Shoprite Nigeria, once the leading retail giant in the country, is struggling to remain afloat as several of its outlets shut down across major cities.
Newsonspot reports that investigations revealed that out of the 25 outlets once spread nationwide, many have permanently closed, while the remaining stores are operating far below capacity. Once a hub for bargain shopping and middle-class families, the shelves of several branches now stand half-empty, reflecting the harsh realities facing the company.
Shoprite entered the Nigerian market in December 2005, debuting at Adeniran Ogunsanya Shopping Mall in Lagos before expanding rapidly nationwide. For years, it became the go-to retail destination for groceries, household goods, and baked products, while also drawing tourists and middle-class shoppers.
However, a combination of economic downturns, soaring inflation, foreign exchange volatility, and heavy reliance on rented spaces has crippled its operations. The exit of Shoprite Holdings Limited in 2020 and the subsequent takeover by Ketron Investment under a franchise deal was expected to revive the brand, but four years on, fortunes have worsened.
Branches in Kano, Abuja, Ibadan, and Ilorin have shut their doors, while the flagship Ikeja City Mall outlet operates at less than half capacity. Findings show that high rental fees – running into hundreds of millions of naira annually – coupled with maintenance and utility charges have drained the company. With imported goods priced 20-40% higher than competitors’, Shoprite has lost ground to local chains like Justrite, Jendol, Bokku, and Adidde, which source most of their products locally and operate from cheaper locations.
Despite the setbacks, Shoprite Nigeria insists it is not collapsing but undergoing a “reset.” According to Chief Strategy Officer Bunmi Adeleye, the company is shifting its model to source over 80% of products locally, reduce costs, and adapt to Nigeria’s economic realities.
“Yes, it has been a tough period, but this is not a collapse; it is a reset. With new investors behind us, we are rebuilding Shoprite to be more local, culturally relevant, more affordable, and more resilient,” Adeleye assured.
