Retail Supermarkets Nigeria Limited (RSNL), operator of the Shoprite franchise in Nigeria, has confirmed that some of its temporarily closed outlets will reopen in time for the Q4 shopping rush after a restructuring of its operations.
Sources within the company told Nairametrics that the closures were linked to working capital constraints and operational setbacks, including unreliable power supply in some malls that affected fresh produce.
The company assured that the affected stores would resume operations as part of efforts to stabilize its business ahead of the peak year-end shopping season.
According to Bunmi Cynthia Adeleye, Chief Strategy Officer at RSNL, the restructuring is focused on smaller, more efficient store formats, increased local sourcing, competitive pricing, and tighter liquidity management. These measures, she added, are expected to restore stability and position Shoprite for sustainable long-term growth.
“Yes, it has been a tough period, but this is not a collapse; it is a reset. The old model did not work for Nigeria. With new investors behind us, we are rebuilding Shoprite to be more local, culturally relevant, more affordable, and more resilient. We are coming back bigger and stronger to serve Nigerian customers better than ever before,” Adeleye said.
This update follows reports over the past few months from social media users and personal shoppers visiting Shoprite stores across the country, who noted empty shelves. More recently, Shoprite outlets in Ibadan and Ilorin were reported to have closed, raising concerns among customers.
What you should know
Shoprite entered Nigeria on December 16, 2005, with the launch of its first store at The Palms Shopping Mall in Lagos. Over the years, the chain expanded steadily, growing to 25 stores across the country.
When Retail Supermarkets Nigeria Limited (RSNL) acquired Shoprite Nigeria from its former South African owners, Shoprite Holdings Limited (SHL), it inherited this nationwide footprint. SHL had attributed its decision to exit the Nigerian market to unfavourable operating conditions.
- In recent years, Shoprite Nigeria under RSNL has grappled with persistent challenges, resulting in temporary closures in some locations. Notably, in January 2024, Shoprite announced the shutdown of its Kano outlet, citing financial difficulties at the mall and the tough business climate across the country.
- Profitability remains a key hurdle in Nigeria’s retail sector, where rising costs and inflation have forced several players, including SMEs, out of the market.
Yet, other supermarket operators have continued to expand, particularly in Lagos. Chains such as Bokku Mart, Jendoll Superstores, and Prince Ebaeno Supermarket are broadening their footprint, reflecting the ongoing opportunities in Nigeria’s consumer market despite its challenges.
