The retail chain Shoprite, which once thrived in the country, is struggling for survival due to the challenging economy. This raises the question of whether the decline is a result of the South African parent company’s exit or the subsequent transfer of ownership.
Previously, the retail chain was one of the market leaders in Nigeria. However, it is now clearly struggling, with several outlets experiencing dwindling customer traffic, empty shelves, and frequent operational disruptions due to power issues. Some are virtually empty and appear to be on the verge of closure.
Evidence suggests the retail chain has closed several outlets in Ibadan, Ilorin, Apapa (under lock and key for the past 3 weeks), and other operating stores have notably shrunken shelves
Shoprite, Africa’s largest food retailer, entered the Nigerian market in December 2005, opening its first store in The Palms Shopping Centre in Lagos. The company expanded its operations across Nigeria, at one point controlling nearly 22% of the formal retail space. By 2020, Shoprite had 25 stores in 11 cities and sourced over 80% of its products locally, employing thousands of Nigerians.
Sooth News, however, would highlight a few challenges that the chain store faced in Nigeria, namely, Supply chain disruptions, Difficulty repatriating funds out of the country, Currency fluctuations and naira devaluation, increased competition from both local and international retailers, and Xenophobic attacks on Shoprite stores in 2019, which led to a decline in customer count and sales, and Impact of the COVID-19 pandemic and associated lockdown regulations. These challenges led to declining sales and significant financial losses for Shoprite Holdings in Nigeria.
In August 2020, Shoprite announced its intention to sell its Nigerian operations. In May 2021, Retail Supermarkets Nigeria Limited (RSNL), the Nigerian subsidiary of Shoprite, was acquired by Ketron Investment Limited, a company owned by a group of local investors led by Persianas Investment Limited. This acquisition received the approval of the Nigerian Federal Competition and consumer protection commission. Under the terms of the acquisition, Ketron Investment Limited gained 100% ownership of Shoprite in Nigeria and would continue operating the existing outlets under a franchise agreement. The agreement also includes a five-year administration and technical support deal from the Shoprite Group in South Africa. Ketron plans to expand Shoprite’s footprint in Nigeria and prioritize Nigerian-made products.
Despite the change in ownership, some sources suggest that Shoprite’s stores in Nigeria continue to face challenges, with reports of empty shelves and reduced customer traffic in 2025. Several stores, including those in Ibadan, Ilorin, Kano, Lagos, and Abuja, have either shut down or are seriously struggling.
However, due to challenges like currency fluctuations, increased competition from smaller companies, and difficulties in adapting to the market’s shift towards digital, Shoprite Holdings sold its Nigerian operations to Persian Investment Limited in 2021. The brand, however, remains in Nigeria through a franchise agreement, with Retail Supermarkets Nigeria Limited
After 16 years of operation in Nigeria, the largest retail company sold its Nigerian operations to a company owned by a group of local investors.
The company blamed the decision to exit Nigerian operations on unfavourable market conditions.
In 2020, the then Chief Executive Officer, Pieter Engelbrecht, said, “We are at the approval stage in terms of the sale of our Nigeria supermarket operation.
“From here, our capital allocated to the region remains at a minimum, and we continue to manage costs as best as we can. ”However, four years after the takeover, the Shoprite stores in Nigeria are becoming virtually extinct. As far back as 2024, the company closed down its Kano store.
Residents have already adjusted to life without Shoprite since it left the city following a decision to close its operation in the state effective January 14, 2024, as announced in a statement by its management. The decision, the management said, was due to its financial situation as well as the difficult business climate in the state at the time.
It was also gathered that the store struggled with rent payment to the Ado Bayero Mall, which was over N65 million monthly, translating into N792 million yearly, minus electricity bills, cost of powering and maintaining its generator, and personnel cost.
Shoprite also faced stiff competition from other supermarkets located along the same Zoo Road where the Ado Bayero Mall, housing Shoprite, was located.
A Kano based retail outlet, Nine (N9ne), and Bedmate Furniture have taken over the space left by Shoprite at the shopping mall.
Report has it that the Deputy Senate President, Senator Barau Jibrin had tried to persuade Shoprite to reconsider leaving Kano, but his intervention yielded no results.
In Lagos, the usually bustling Shoprite outlet inside the Ikeja City Mall in Lagos has taken on an unfamiliar look.
Recently, Sooth News was at the Wuse Branch, and the situation was not looking too good. When our correspondent visited the outlet along 4, Otunba Ayodele Soyode Lane, (Formerly Park Lane) Apapa, GRA, Lagos, the outlet was totally in darkness, the inner entrance to the Main Shop was locked, the atmosphere signified may be something was wrong somewhere. Sooth News even asked the security on duty, and they said the management is ‘’renovating.’’
Once renowned for long queues at checkout counters and crowded aisles filled with shoppers, the store now presents a stark contrast, with empty shelves, scanty product displays, and only a handful of customers walking through.
The report had it that theShoprite store located at Jabi Lake Mall in Abuja revealed that many shelves, which have always been stocked with items, were empty. It was also reported that Shoprite stores have been shut down in Ilorin, the Kwara State Capital, and Ibadan, the Oyo State Capital. There is a notice stating,
“Dear esteemed customers, the store is temporarily closed today due to some circumstances beyond immediate control. The able management is working around the clock to ensure that operations pick up very soon. Kindly bear with us. Thank you for your understanding. By the Management.” But there no formal notice placed on the closure of Shoprite Apapa; it has been shut down for the past 3 weeks. Although before the closure, the mall offered skeletal services.
Sooth News would pose the following questions: What could really be the issue? What would happen to hundreds of Nigerians who earn their daily income through the Shop? Won’t there be solutions?
