Shoprite Confirms Commitment to Nigeria Amid Business Restructuring

 

 

Shoprite Confirms Commitment to Nigeria Amid Business Restructuring

 

 

 

Retail Supermarkets Nigeria Limited (RSNL), the operators of the Shoprite franchise in Nigeria, has dismissed reports that the supermarket chain is exiting the country.

 

In a statement, RSNL said it is implementing a “comprehensive business model reset” to adapt to the current economic climate.

 

“The previous business model, inherited after the company’s acquisition, relied heavily on large store formats, imports, and high overhead costs. This approach is no longer sustainable given exchange rate volatility, rising inflation, and liquidity constraints,” the statement explained.

 

RSNL’s Chief Strategy Officer, Bunmi Adeleye, described the changes as part of a strategic rebuilding process.

 

“This is not a collapse; it is a reset. With new investors supporting us, we are positioning Shoprite to be more local, culturally relevant, affordable, and resilient. We are committed to serving Nigerian customers better than ever before,” Adeleye said.

 

The clarification comes after reports of empty shelves in some outlets and the closure of branches in Ilorin and Ibadan. Customers at Ikeja City Mall, Lagos, also noted limited stock, particularly in groceries and wines.

 

Since its South African parent company exited Nigeria in 2021, Shoprite has faced operational challenges, including rising costs, foreign exchange issues, and stiff competition from local and online retailers.

 

RSNL assured that normal operations would resume by the end of September following its annual audit. “By the end of September, we will restock and resume full operations,” a management staff said.

 

Shoprite, which started operations in Nigeria in 2005, employs over 2,000 people directly and supports thousands more through its supply chains, including local farmers. The new business model is designed to protect these jobs while ensuring the company thrives in Nigeria’s challenging economic environment.