Carrefour to enter Nigeria through partnership with HyperCity
Plan includes rollout of 20 stores by 2028, including discount formats
NIGERIA – Carrefour has confirmed plans to launch operations in Nigeria through a franchise agreement with Port Harcourt-based HyperCity, marking its latest move to expand across African markets.
The deal will make Nigeria Carrefour’s 15th country of operation on the continent as the retailer continues a wider regional push following recent partnership announcements in Ghana, Ethiopia, and Guinea.
However, the Nigerian retail environment has historically posed challenges for foreign supermarket operators, with companies such as Shoprite, Pick n Pay, Game, and Woolworths having scaled back or exited operations after struggling with high operating costs and limited access to foreign exchange.
In contrast, SPAR has maintained a presence in the country through its partnership with Artee Group, reflecting a model that relies on local franchise management rather than direct ownership.
HyperCity, which opened its first outlet in 2022, currently operates four large-format stores in Port Harcourt and is led by chief executive Sunny Chawla, a former executive at Artee Group with experience in Nigeria’s supermarket sector.
The partnership will see existing HyperCity outlets converted to the Carrefour brand while both companies aim to establish 20 locations nationwide by 2028, including the introduction of Carrefour’s Atacadão bulk discount concept.
Market structure and local competition
Nigeria’s grocery sector remains heavily informal despite its size, with total food and grocery retail sales reaching about US$13.2 billion representing a 30.4% increase in nominal terms amid inflationary pressure.
Even so, formal retail channels account for only a small share of transactions, as open-air markets, kiosks, and small neighbourhood stores account for 90%-97% of nationwide food sales.
This structure is shaped by income disparities and consumer reliance on flexible purchasing options, while supermarkets primarily serve urban middle- and higher-income households seeking packaged goods, imported products, and standardised shopping environments.
Expansion led by domestic chains
Growth in modern retail has largely been driven by domestic operators, with Bokku! Mart leads by store count in 2025 with 124 outlets, followed by Addide, Market Square, Justrite, and FoodCo.
Other operators, including Jendol, Roban Stores, and Prince Ebeano, continue expanding through neighbourhood-focused outlets, reflecting a shift toward locally adapted formats in a market where international entrants have faced repeated setbacks.
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