Shoprite, Nigeria’s once-dominant retail supermarket chain, is facing its most difficult period yet. Four years after the exit of its former South African owner from the Nigerian retail market, the company appears to be struggling to remain afloat.

Daily Trust reports that Shoprite stores in Ilorin and Ibadan have shut down, while many shelves in outlets across Lagos and Abuja are virtually empty, fuelling speculation about the future of the brand in Nigeria.

Since opening its first Nigerian store in Lagos in 2005, Shoprite became a household name in the retail supermarket segment. At its peak, the brand operated over 25 stores across eight states and the Federal Capital Territory (FCT), employing more than 2,000 workers directly and supporting local suppliers, especially farmers.

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Shoprite Nigeria, originally owned by Shoprite Holdings of South Africa, transitioned from direct ownership to a franchise model after its 2020 exit from Nigeria. This shift marked a turning point in the retailer’s Nigerian operations.

Why Shoprite Is Losing Dominance

Shoprite’s decline has been driven by a combination of factors:

• Supply Chain Challenges: Persistent disruptions in stock delivery have left shelves empty for months.
• Inflationary Pressures: Rising costs of operations, including rent and energy, have eroded profits.
• Stiff Competition: Local supermarkets and online retail platforms are aggressively capturing market share.
• Exchange Rate Volatility: Heavy dependence on imported goods has made operations expensive.

These pressures have resulted in financial losses, forcing the company to shut down stores in several Nigerian cities, including Kano in early 2024.

A visit to the usually bustling Shoprite outlet at Ikeja City Mall, Lagos, revealed near-empty shelves and a subdued shopping experience. Once famous for its long queues and vibrant atmosphere, the store now shows signs of decline with empty grocery aisles, sparse frozen food sections, and depleted wine racks.

At Jabi Lake Mall in Abuja, shelves that were once stocked are now bare. Power outages and delays in supply have further worsened the experience for customers and staff alike.

Despite the gloomy outlook, Shoprite staff insist the retailer is not leaving Nigeria. According to one administrator, the new management is renegotiating terms with suppliers to restore inventory soon.

Employees across branches report months of supply delays, with no clear communication from management. While salaries are still being paid, staff fear for their jobs if the situation persists. “Our chest is beating because we can’t afford to lose our jobs,” one employee in Abuja told Daily Trust.

However, management has assured that Shoprite will restock by the end of September after completing its annual financial audit.

In Ilorin, Kwara State, Shoprite’s once-busy retail hub now bears the look of near-abandonment. Shelves stand empty, with only scattered items to fill gaps. Staff attribute the decline to a change of ownership and expect operations to stabilize soon.

In Ibadan, the company has also shut its expansive store along Ring Road, as well as its Mokola branch. Notices at the entrances inform customers of a “temporary closure due to circumstances beyond immediate control,” promising a revival soon.

Shoprite’s struggles are part of a larger trend of multinational companies exiting Nigeria due to the challenging business environment.

• GlaxoSmithKline (GSK): Ceased operations in 2023 after 51 years.
• Procter & Gamble (P&G): Shut down in December 2023, causing over 5,000 job losses.
• Bolt Food: Ended its Nigerian operations in December 2023.
• Sanofi-Aventis: Transitioned to third-party distribution in early 2024.
• Equinor: Concluded its 31-year presence in Nigeria’s oil and gas sector in December 2024.

Economists warn that unless Nigeria improves its business climate, more companies may follow suit.

Despite the current setbacks, Shoprite’s management maintains that it is working round the clock to revive operations. With ongoing negotiations with suppliers and plans to restock by September, the company hopes to reclaim its position as Nigeria’s leading supermarket chain.

However, customers remain skeptical, and the once-thriving brand must act swiftly to rebuild trust and restock shelves to compete with local and online retailers.