Shoprite in Nigeria is currently struggling to survive four years after its former South African owner exited the country’s retail business.
Once dominant in Nigeria’s supermarket space, Shoprite is fast losing its hold. Most outlets now operate with near-empty shelves, while some have completely shut down.
As of press time, the stores in Ilorin and Ibadan had closed their doors, while checks at other branches in Lagos, Abuja and elsewhere revealed scanty shelves.
Since opening its first Nigerian store in Lagos in 2005, Shoprite became a household name, expanding to at least 25 outlets across eight states and the Federal Capital Territory. A subsidiary of South Africa’s Shoprite Holdings, the company popularised the modern supermarket model in Nigeria, employing over 2,000 people directly and supporting farmers and local suppliers.
However, in recent years, inflation, supply chain disruptions, and mounting financial pressures have weakened its operations.
In response, the parent company shifted focus back to South Africa, transitioning Nigerian operations into a franchise model and selling them to a group of local investors in 2021.
Explaining the decision, then-CEO Pieter Engelbrecht said in 2020: “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.”
Since the takeover, the chain’s fortunes have worsened. In January 2024, Shoprite shut its Kano outlet at Ado Bayero Mall, citing harsh business conditions and unpaid rents reportedly as high as ₦66 million monthly (₦792 million yearly), excluding electricity, maintenance, and staffing costs.
The vacant space was quickly taken over by Nine (N9ne), a Kano-based retailer, and Bedmate Furniture.
Now, with stores in Ibadan and Ilorin gone and shelves in Lagos and Abuja nearly bare, Shoprite’s once-strong Nigerian footprint appears to be shrinking into extinction.
-Daily Trust