Shoprite, staff face uncertainty amid skeletal operations, empty shelves in Nigeria –Report

*Shoprite, a South African supermarket chain, is fast losing its dominance in the Nigerian ecosystem with most of its outlets virtually empty, and on the verge of shutting down, says a report

Isola Moses | ConsumerConnect

Shoprite, the popular retail company in Nigeria, is currently struggling to stay afloat four years after the exit of its former South African owner from the country’s retail business space.

Amid the growing competition in the retail supermarket segment in the country, Shoprite is fast losing its dominance in the ecosystem with most of its outlets virtually empty and on the verge of shutting down, Daily Trust report said.

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Shoprite is a subsidiary of Shoprite Holdings, which is the parent company of the Shoprite brand, a South African company with headquarters in Brackenfell, Cape Town, South Africa.

Shoprite stores, in Ilorin, Kwara State capital, and Ibadan, in Oyo State, have been shut down as of Thursday, September 18, 2025, report noted.

Checks at most of their retail outlets that are still open across Nigeria also showed virtually scanty shelves.

Historical development of Shoprite operations in Nigeria

Since 2005 when the first Shoprite store opened in Lagos, the retail chain has become a household name in the retail supermarket segment.

It expanded to eight states, including the Federal Capital Territory (FCT) with about 25 stores.

The company, made its inroad into Nigeria, has popularised the retail supermarket business, employing over 2000 directly and supporting other local businesses especially the farmers through which some of its items are sourced.

However, supply chain challenges, inflationary pressures, among others, have hit the business segment, resulting in huge financial losses, according to report.

The company, therefore, decided to focus on its South African market while transitioning from ownership to franchise business model.

The supply chain challenges are not limited to Nigeria. Already Shoprite has shut down operations in several other African countries including Kenya, Ghana, and Uganda.

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Following 16 years of operations in the West African country, the largest retail company sold its Nigerian operations to a company owned by a group of local investors a few years ago.

The company had blamed the decision to exit Nigerian operations on unfavourable market conditions.

In 2020, Pieter Engelbrecht, Chief Executive Officer (CEO) of the company, also said at the time: “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.”

However, four years after the takeover, the Shoprite stores in Nigeria are becoming virtually extinct, according to report.

Since 2024, the company has shut its Kano store for instance.

Residents have already adjusted to life without Shoprite since it left the city, following a decision to close operations in the state effective January 14, 2024 as announced in a statement by the Management.

The decision, the Management of Shoprite said, was due to its financial situation as well as the difficult business climate in the state at the time.

Report also indicated that the store struggled with rent payment to the Ado Bayero Mall, which was N66 million monthly translating into N792 million yearly minus electricity bills, cost of powering and maintaining its generator and personnel cost.

Facing rising competition in retail chain space

Shoprite also faced stiff competition from other supermarkets located along the same Zoo Road where the Ado Bayero Mall housing Shoprite was located, report stated.

A Kano-based retail outlet Nine (N9ne) and Bedmate Furniture have taken over the space left by Shoprite at the shopping mall.

Relating his experience in the industry, Umar Habu Ibrahim, Secretary National Association of Supermarkets, in Kano, once disclosed that lots of supermarkets had closed shop but the case of Shoprite was different.

Ibrahim said that rising transportation cost and Foreign Exchange (Forex) crisis were the main triggers.

He also stated: “The reason Shoprite is closing first is the exchange rate because they import wares from abroad, and second, it is not about patronage but non cordial relationship with Ado Bayero Mall.

“The mall, in my view, has no strategy and policy where the common man can invest.

“They give out rent based on square metres. We are not used to that, and you have to pay monthly,” said Ibrahim.

According to him, the underlying challenge is that the Management of the mall kept increasing the rent coupled with the exchange rate uncertainty forcing many shop owners including Shoprite to exit.

Speaking on the development, Senator Barau Jibrin, Nigerian Deputy Senate President, was said to have tried to persuade Shoprite to reconsider leaving Kano but his intervention yielded no results.

Likewise, in Lagos, the usually bustling Shoprite outlet inside the Ikeja City Mall adjacent to the Alausa Secretariat, in Lagos, has taken on an unfamiliar look also.

Once renowned for long queues at checkout counters and crowded aisles filled with shoppers, the store now presents a stark contrast, with empty shelves, scanty product displays, and only a handful of customers walking through.

A recent visit revealed near-empty sections across groceries, frozen foods, and the winery. While the frozen aisle displayed just a few packets of protein, the wine racks were largely bare, and many rows of shelves stood hollow.

The atmosphere, subdued compared to Shoprite’s trademark energy, has fuelled speculation about the retailer’s future in Nigeria.

Shoppers and industry watchers have whispered about the possibility of Shoprite exiting Nigeria, a rumour reinforced by the store’s current state.

However, officials and staff at the Ikeja Branch insist the retail giant is not folding up operations.

In a chat with the store’s administrator, identified as Oluwatosin, he explained that the development is linked to ongoing discussions between Shoprite’s new management and its suppliers.

“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 stated.

The administrator dismissed fears of expired products being circulated during the supply pause, stressing that Shoprite maintains “zero tolerance” for expired goods.

The official also stated: “We would rather not sell at all than leave expired products on the shelves.”

Oluwatosin, however, could not provide a definite timeline for when normal operations would resume, report noted.

She only said: “I wouldn’t be able to tell you precisely because I don’t know how they are having their meeting. I’m just an employee.

“It is when they have sorted everything and they tell us the situation of things that we know what is happening.”

Beyond Management’s position, staff reactions painted a mixed picture. One staff member, visibly surprised when asked about possible closure, dismissed the rumour outright.

“That is a big lie. We are not leaving anywhere. It’s not possible.”

The company has even launched television jingles to reassure customers.

Another staff member, though initially hesitant to speak, admitted to growing frustration within the workforce.

According to him, the supply challenges have dragged on for months, leaving many employees disillusioned.

“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.

“They are just doing small, small orders of supplies for a while now and they say things will be sorted this month.”

Shoprite, which entered the Nigerian market in 2005, quickly became the country’s leading retail supermarket chain, drawing huge crowds with its wide product range and relatively affordable prices.

But in recent years, it has faced increased competition from emerging shopping malls, local supermarkets, and online platforms that are expanding aggressively across major cities.

For now, however, the situation at Ikeja paints a picture of uncertainty. While Management insists the retailer is not exiting Nigeria and promises a rebound, many customers walking through its half-empty aisles are left wondering how soon the once vibrant store can return to its former dominance.

Several scanty shelves in Abuja

A recent visit at the Shoprite store located at Jabi Lake Mall, in Abuja, revealed that many shelves which have always been stocked with items were empty, according to report.

At first, when the reporter got there, the store was closed, upon enquiries, the attendants explained that it was due to power outage.

However, after about 30 minutes, power was restored and customers were allowed in, there several empty shelves in the retain chain.

One of the staff, who spoke on the condition of anonymity, stated the situation has been like this for the last two months in 2025.

Staff face uncertainty amid empty shelves, skeletal operations

Commenting on the relatively low level of operations, the staff also noted: “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.”

Asked if there is any communication from management, he said, “The Management is not saying anything so we are just here.

“Everybody here, our chest is beating because we can’t afford to lose our jobs if they close.”

Another staff member, who also spoke to the newspaper on the condition of anonymity, said the staff are just wondering the direction of the outlet as there has been no supply in the last two months.

Asked if the staff are being paid their salaries and other entitlements, he said: “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 so they are paying but they are not just saying anything on the recent non-supply of products.”

We will restock ending September, says official

One of the Management staff, who also spoke on condition of anonymity disclosed “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 said.

The top official of Shoprite also allayed fears of Shoprite folding up.

“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,” she added.

Shoprite shut outlets in Ilorin, Ibadan

The Shoprite stores have been shut down in Ilorin, Kwara State, and Ibadan, Oyo State Capital.

In Kwara, prior to the shutdown when Daily Trust visited in Ilorin, the once-busy retail hub looked like a shadow of its former self.

Once a beehive of activities and one of the city’s go-to shopping centres grossing millions in minutes, it then bore the look of near-abandonment.

Several shelves were empty, and in the 20 minutes our correspondent spent inside the facility, no sale was recorded.

Apart from scattered empty containers, bottled water packs were used to fill many shelves, while the bakery section showed only faint signs of activity. The usually vibrant atmosphere had given way to silence, with a handful of staff moving idly or engaging in quiet discussions.

Some of the aisles were stocked with similar items spread thinly across to cover the empty spaces. Staff members approached by our correspondent declined to comment on the situation.

However, an employee who spoke on condition of anonymity, citing fear of dismissal, attributed the decline to a recent change of ownership.

“It is just the change in ownership. We are still coming up by the special grace of God and we are not leaving Ilorin.

“The scantiness of the place and dwindling patronage is expected during such a period.”

The staff also stated: “Formerly, it was owned by some people from South Africa, but it was sold about three years ago.

“The buyers wanted to resell, and it was the takeover by the new investors that created the situation we are seeing. We hope activities will soon pick up as before.”

In Ibadan, a visit to the store along Ring Road Ibadan, an expansive store, as well showed the facility was under lock and key.

Also, the branch at Mokola, in Ibadan, has equally been shut.

Though it was shut down about six days ago, many shoppers were still seen at the mall when our correspondent checked.

We are working to revive Shoprite – Management

At the entrance, there was a notice indicating the store was temporarily shut.

The notice 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. Kindly bear with us.

“Thank you for your understanding. By the Management.”

There has been no official comment from the new owner, report said.

The impending exit of Shoprite is coming amid the shutdown of some other businesses in Nigeria in the last two years, report added.

Economist: Why more companies may exit

Against the backdrop of the current business climate, Dr. Marcel Okeke, an economist, reportedly said more companies might exit Nigeria due to what he called, “unconducive” business environment.

Dr. Okeke said Shoprite originally exited and sold the franchise due to the fact that the economy is no longer competitive.

“Of course, many companies have left and many are still going to leave … because the environment is not conducive.

“Nigeria’s economy, as it is, is uncompetitive when you compare it to other economies, those economies are more business friendly,” the expert averred.

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