Shoprite Struggles to Survive in Nigeria, Shuts Down More Stores Amid Supply Crisis and Market Pressure
By Kamal Yalwa | September 18, 2025 Four years after its South African parent company divested from Nigeria, popular retail giant Shoprite is now fighting for survival in the country’s increasingly competitive and challenging retail market. Once the undisputed leader in Nigeria’s supermarket space, Shoprite is now a shadow of its former self — with several stores shut down, shelves sitting empty, and growing fears of a complete exit despite reassurances from the current management. Multiple Store Closures, Dwindling Presence As of September 2025, Shoprite outlets in Ilorin and Ibadan have been shut down, joining earlier closures such as the Kano store, which ceased operations in early 2024. At the once-bustling Ikeja City Mall in Lagos, the supermarket now tells a different story: deserted aisles, empty grocery racks, and visibly reduced customer traffic. A similar situation is unfolding at Jabi Lake Mall in Abuja, where many shelves sit bare and staff express growing uncertainty about the future. “We’ve had no supplies for over two months,” one staff member told Daily Trust. “Management isn’t saying anything concrete, and we’re worried about our jobs.” From Market Leader to Market Struggler Shoprite entered Nigeria in 2005 with massive success, rapidly expanding to over 25 stores across key cities, including Lagos, Abuja, Port Harcourt, and Ibadan. The brand redefined modern retailing in Nigeria and became a household name. However, following years of economic volatility, inflation, forex instability, and high operational costs, Shoprite Holdings of South Africa sold off its Nigerian operations to a group of local investors in 2021. Since then, the retail chain has continued to struggle under the new ownership. “After the South African exit, the new investors faced stiff competition and financial pressures,” said an industry analyst. “Coupled with high rent and utilities, it’s become nearly impossible to sustain operations at previous scale.” For instance, Shoprite’s former store in Kano reportedly struggled with N66 million in monthly rent, plus electricity and generator costs — leading to a decision to shut down despite government appeals. Management Speaks: “We’re Not Leaving Nigeria” Despite public speculation about an imminent exit, management insists the chain is not shutting down operations in Nigeria. A staff member at the Ikeja branch explained that ongoing negotiations with suppliers are responsible for the empty shelves: “There’s a new management, and they’re trying to renegotiate prices with vendors. Once that’s done, we’ll restock.” An official source also told Daily Trust that an internal financial audit had just been completed and the company plans to resume full stocking by the end of September. “Shoprite is not a one-man business that can just close down overnight,” the source said. “We’re going to restock and come back stronger.” Still, staff across various locations have expressed concerns over the prolonged supply gaps, lack of internal communication, and the uncertain timeline for recovery. Retail Competition Heats Up Shoprite’s decline comes amid a surge in local competitors and online retail platforms taking larger shares of Nigeria’s urban market. New entrants and regional supermarket chains are expanding aggressively with leaner models, lower operating costs, and more responsive supply chains. In Kano, Shoprite’s exit created space for local retailers like Nine (N9ne) and Bedmate Furniture, which have since taken over the space previously occupied by the South African chain at Ado Bayero Mall. Not an Isolated Case: More Multinationals Exit Nigeria Shoprite is not alone. In the past two years, several multinational companies have left Nigeria: Experts Warn of More Exits to Come Economist Dr. Marcel Okeke warned that more businesses may follow suit if Nigeria’s business environment does not improve. “Nigeria’s economy is uncompetitive,” he said. “High costs, poor infrastructure, forex instability, and policy uncertainty make it difficult for businesses to thrive. Unless reforms are made, more exits are likely.” Outlook: Uncertain but Not Over For now, Shoprite’s management maintains that it is not exiting Nigeria, and operations will resume once supplier issues are resolved. But for thousands of staff and millions of loyal customers, the uncertainty lingers. With shelves empty and doors shut in several cities, the pressing question remains: Can Shoprite reclaim its place in Nigeria’s retail landscape — or is this the final chapter?
