Retail Supermarkets Nigeria Limited (RSNL), operators of the Shoprite franchise in Nigeria, has denied claims that it is shutting down operations in the country.In a statement, the company explained that it is undergoing a “comprehensive business model reset” to adapt to Nigeria’s economic realities. It noted that the old model, which relied heavily on large store formats, imports, and high overheads, had become unsustainable due to exchange rate volatility, inflation, and limited liquidity.
RSNL said 80 per cent of its products are now sourced locally, with the restructuring aimed at stabilising operations and positioning Shoprite for long-term growth.Chief Strategy Officer, Bunmi Adeleye, described the reset as a rebuilding phase. “Yes, it has been a tough period, but this is not a collapse; it is a reset. 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,” she said.
The clarification followed reports of empty shelves in some outlets and the closure of branches in Ilorin and Ibadan. At the Ikeja City Mall in Lagos, customers were met with scanty displays, fuelling speculation about a shutdown.Shoprite has faced difficulties since its South African parent company exited Nigeria in 2021 and sold its operations to local investors. Rising costs, forex challenges, and competition from local and online supermarkets have added to the pressure.
RSNL assured that operations would return to normal by the end of September after its annual financial audit. “By God’s grace at the end of September we will restock,” a management staff stated.Since launching in Nigeria in 2005, Shoprite has directly employed over 2,000 people and supported thousands more through its supply chain, especially farmers. The company emphasised that its new strategy would protect these jobs and sustain its role in the local economy despite the tough business environment.
Source: https://guardian.ng/
