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Four years after Nigerian businessman Tayo Amusan’s Ketron Investment Limited, a subsidiary of Persianas Group, acquired Retail Supermarkets Nigeria Limited (RSN)—the operator of Shoprite in Nigeria—the retailer is still struggling to steady its business in Africa’s most populous economy. The challenges have now led to the closure of key outlets across major cities.
Local reports from Daily Trust confirm that Shoprite outlets in Ilorin, the capital of Kwara State, and in Ibadan, less than two hours from Lagos, have shut their doors. The Ilorin branch, once a busy destination for weekend shoppers, had been slowing for months, with thinning crowds and declining sales before the final closure.
In Ibadan, the Ring Road and Mokola outlets were locked up with notices pinned to the entrances, citing circumstances “beyond immediate control.” Management sought to reassure customers at the time, saying efforts were being made to restore operations.
Economic shifts weigh on retail giant
The closures add to the strain on Shoprite Nigeria, which has been under pressure from weak consumer spending, rising costs, and stiffer competition. In Kano, the retailer struggled against rivals inside Ado Bayero Mall, Northern Nigeria’s first large-scale shopping center, where high rent and day-to-day expenses made it harder to keep stores profitable.
Signs of trouble had surfaced even before businessman Tayo Amusan’s Ketron acquired the business. By June 2020, Shoprite Nigeria reported assets of $125 million against liabilities of $140 million leaving its balance sheet under stress. At the same time, inflation was eroding household income and shoppers were cutting back, reshaping spending habits across the country’s retail sector.
Amusan’s Shoprite deal hits more hurdles
A year before the most recent wave of shutdowns, Shoprite Nigeria had already exited its Wuse store in Abuja. The company said at the time that the decision followed “a thorough evaluation of the store’s financial situation and the current business climate,” stressing that it was taken in the interest of long-term stability.
Amusan’s Persianas Group had positioned the acquisition of Shoprite Nigeria as part of a larger plan to expand into retail, hospitality, and real estate. The deal was seen as a major move to bring one of Nigeria’s biggest supermarket names under local control.
But despite the promise, the continued closures reflect the uphill battle for operators trying to run large-scale retail businesses in Nigeria. For shoppers in cities like Ilorin and Ibadan, the empty shelves and locked doors tell the story more clearly than any balance sheet: expanding retail in Nigeria remains a difficult bet, even for seasoned investors.
