Retail Supermarkets Nigeria Limited (RSNL), operators of the Shoprite franchise in the country, has dismissed reports suggesting that it is shutting down operations in Nigeria.
In a statement, the company explained that what is happening is a “comprehensive business model reset” designed to help Shoprite adapt to Nigeria’s economic realities, not an exit.
“The former business model, inherited after the company’s acquisition, heavily relied on large store formats, imports, and high overheads. This model is no longer viable in the face of Nigeria’s current economic climate, which includes exchange rate volatility, rising inflation, and constrained liquidity,” the statement said.
RSNL’s Chief Strategy Officer, Bunmi Adeleye, stressed that the Shoprite Nigeria business reset is aimed at rebuilding the brand for long-term growth.
“Yes, it has been a tough period, but this is not a collapse; it is a reset,” she explained. “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.”
The clarification follows concerns raised by customers after reports of empty shelves and the closure of branches in Ilorin and Ibadan. Shoppers at the Ikeja City Mall in Lagos also observed limited stock in key sections, including groceries and wines.
Since its South African parent company exited Nigeria in 2021, Shoprite has grappled with rising operational costs, foreign exchange challenges, and stiff competition from local and online retailers.
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However, RSNL assured customers that normal operations would resume by the end of September after its annual audit. “By God’s grace at the end of September we will restock,” a management staff member said, dismissing speculation of a shutdown.
Shoprite, which entered the Nigerian market in 2005, currently employs more than 2,000 workers directly and supports thousands more through its supply chains, particularly farmers. The Shoprite Nigeria business reset is expected to safeguard these jobs while positioning the retailer for resilience in the country’s challenging economic climate.