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The operator of Shoprite Nigeria, Retail Supermarkets Nigeria Limited (RSN), owned by Ketron Investment Limited, led by Nigerian businessman Tayo Amusan, has acknowledged that its old model of running large stores with heavy reliance on imports and high overhead costs is no longer sustainable, emphasizing that it has no plans to exit the Nigerian market.
The disclosure comes amid reports of store closures and empty shelves in major cities, reflecting the challenges the supermarket chain faces in Africa’s most populous economy. Some key outlets have already shut their doors as RSN works to stabilize operations.
RSN said the changes are part of a “reset” aimed at adapting to Nigeria’s economic realities, including currency fluctuations, rising inflation, and tight liquidity. It is now implementing a turnaround program to help strengthen its operations.
RSN shifts to local supply chains
As part of the reset RSN plans to focus on smaller, more efficient stores, rely more on local supply chains—sourcing over 80 percent of products in Nigeria—and expand private-label options for affordability. The strategy also includes improving cost management through energy optimization and other efficiency measures.
Bunmi Cynthia Adeleye, RSN’s chief strategy officer, said: “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, more culturally relevant, more affordable, and more resilient. We are coming back bigger and stronger to serve Nigerian customers better than ever before.”
RSN faces financial strain
Over four years ago, Amusan’s Ketron Investment, a subsidiary of Persianas Group, acquired RSN, taking control of Shoprite Nigeria. Signs of financial strain predated the acquisition: by June 2020, the retailer reported $125 million in assets against $140 million in liabilities.
The acquisition had been part of Persianas Group’s broader plan to expand into retail, hospitality, and real estate and it was seen as a move to bring one of Nigeria’s largest supermarket brands under local management. Yet the ongoing closures show the challenges of running large-scale retail operations in Nigeria where high costs and operational complexity remain a hurdle even for established investors.
Nigeria retail market tests Shoprite
Last year, Shoprite Nigeria closed its Wuse store in Abuja, citing “a thorough evaluation of the store’s financial situation and the current business climate” and emphasizing that the decision was made to ensure long-term stability. This week, reports confirmed the closure of outlets in Ilorin, Kwara State, and Ibadan, just under two hours from Lagos.
For Nigerian shoppers, the locked doors and empty shelves tell a clear story: operating large-format retail in the country remains a difficult undertaking. Weak consumer spending, rising costs, and stiff competition continue to test the resilience of operators like Shoprite Nigeria as they adjust to a challenging economic environment.
