SHOPRITE’S CRISIS WORSENS AS STORES SHUT IN IBADAN, ILORIN; LAGOS, ABUJA SHELVES RUN DRY
Read Time:3 Minute, 45 Second
By: Sefiu Ajape
The once-dominant South African supermarket chain, Shoprite, is rapidly fading from Nigeria’s retail market.
Four years after its former South African owners exited, the brand is struggling to survive amid stiff competition and mounting challenges.
According to reports, Shoprite outlets in Ilorin and Ibadan have shut down, while stores in Lagos and Abuja operate with half-empty shelves, a stark contrast to their once-bustling reputation.
Shoprite in Nigeria
Since the first outlet opened in Lagos in 2005, Shoprite became a household name, expanding into eight states and the FCT, with no fewer than 25 stores.
The company, a subsidiary of Shoprite Holdings in South Africa, boosted Nigeria’s retail sector, employed over 2,000 directly, and supported local businesses, especially farmers.
But inflation, supply chain challenges, and other economic pressures resulted in huge financial losses. Shoprite later sold its Nigerian operations to local investors, citing “unfavourable market conditions.”
In 2020, the then CEO, 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.”
Four years after the takeover, however, Shoprite’s presence in Nigeria is shrinking.
Shut Stores, Rising Concerns
In Kano, Shoprite closed its outlet at Ado Bayero Mall in January 2024 after struggling to meet rent obligations of N66 million monthly.
A Kano-based retail operator, Umar Habu Ibrahim, explained: “The reason Shoprite is closing first is the exchange rate because they import wares from abroad and secondly it is not about patronage but non cordial relationship with Ado Bayero Mall.”
At the Ikeja City Mall in Lagos, once known for bustling queues, the store now operates with near-empty shelves, subdued atmosphere, and fewer customers.
An administrator at the outlet, Oluwatosin, attributed the situation to ongoing supplier negotiations under new management: “Actually, there is a new management, so they are trying to have a kind of meeting with all the stakeholders, the suppliers and vendors so that they can renegotiate their prices. Hopefully when that is completed, then they will start stocking the store again.”
She stressed that Shoprite maintains “zero tolerance” for expired products, adding: “We would rather not sell at all than leave expired products on the shelves.”
Staff reactions, however, show uncertainty. One worker insisted, “That is a big lie. We are not leaving anywhere. It’s not possible.”
Another admitted frustration: “This has been going on for about three to four months now. They keep telling us that everything is going to be alright this month.”
In Abuja, a visit to the Jabi Lake Mall outlet revealed empty shelves. A staff member said: “This is what has been happening in the last two months. We have been ordering and there is no supply and we don’t know what is happening. All of us staff here are worried, we don’t know what’s happening and we don’t know what they are planning.”
Another confirmed: “We are paid regularly because the management knows if they don’t pay, staff will pack the items in the store and go with them.”
“We Will Restock” – Management
One management staff explained the delay: “The company just finished auditing its annual financial results and wanted to certify the state of things first before continuing with supply. So by God’s grace at the end of September we will restock.”
She added, “Shoprite is not a one man supermarket and it can’t just close like that, it’s just our Financials that was delaying so now we are done and we will restock by September.”
In Ibadan and Ilorin, the stores remain closed. A notice in Ibadan read: “Dear esteemed customers, the store is temporarily closed today due to some circumstances beyond immediate control. The able management is working round the clock to ensure that operations pick up very soon.”
A Growing List of Exits
Shoprite’s struggles mirror a broader trend of multinational exits from Nigeria. In recent years, GSK, P&G, Bolt Food, Sanofi-Aventis, and Equinor have either closed or scaled back operations due to harsh economic conditions.
Economist Dr. Marcel Okeke warned: “Of course many companies have left and many are still going to leave you understand because the environment is not conducive, Nigeria’s economy as it is uncompetitive when you compare it to other economies, those economies are more business friendly.”
Happy
0 %
Sad
0 %
Excited
0 %
Sleepy
0 %
Angry
0 %
Surprise
100 %
0
0