Shoprite shuts down operations in Nigeria

NIGERIA – Nigeria’s shopping mall sector valued at about US$1.56 billion (N2.5 trillion) has suffered a significant setback following the nationwide shutdown of Shoprite stores after two decades of operations in the country.

Analysts estimate that roughly US$875 million (N1.4 trillion) in retail-related activity may have been affected as hundreds of businesses linked to the supermarket chain lose a major source of commercial traffic.

The closure has also disrupted the livelihoods of thousands of employees and suppliers who depended on the company, along with many households whose income relied on activities tied to its outlets.

For years, the retailer acted as a major bulk buyer of food products, beverages, household items, and locally produced goods, creating an extensive supply network across the country.

Its presence in malls also drove consumer traffic that benefited surrounding stores such as clothing outlets, restaurants, pharmacies, and cinemas operating within the same complexes.

From rapid growth to empty aisles

Shoprite first entered Nigeria in 2005 and expanded quickly, eventually operating around 25 supermarkets across 13 states as shoppers embraced the modern retail model.

However, financial pressure intensified after the COVID-19 pandemic as border restrictions, shortages of foreign exchange, higher import tariffs, and rising logistics costs began to strain operations.

In 2021, the South African parent company transferred ownership of its Nigerian operations to Ketron Investment Limited, a consortium led by Persianas Investment Limited, which continued running the business under a franchise agreement.

At the time, the new ownership structure was presented as a continuation of operations, and customer traffic briefly improved during holiday periods when vouchers and family shopping trips drove sales.

By 2024, however, shoppers began reporting persistent shortages in stores where shelves often carried only limited goods such as wine, detergents, or toys.

By late 2025 several outlets in Lagos and other cities had stopped operating entirely, leaving once busy supermarket spaces deserted.

Retail Supermarkets Nigeria Limited said the move does not represent a permanent exit but a restructuring effort intended to adjust the business model to economic conditions.

Businesses and workers feel the impact

Early closures were already visible in January 2024 when the outlet at Ado Bayero Mall in Kano shut down after management cited financial challenges and changing market conditions.

Tenants within malls that previously relied on the store’s traffic reported a sharp drop in customer visits once the supermarket stopped operating.

A footwear retailer in Festac said weekly revenue dropped from about US$1,563 (N2.5 million) to around US$625 (N1.0 million) after the supermarket closed, making it difficult to meet operating costs.

In Akure, Ondo State, former store employees said the closure forced many workers to search for alternative sources of income, including small retail activities and mobile money services.

Suppliers who previously delivered large volumes of goods to the chain have also had to shift to smaller retailers, reducing their overall turnover.

Across several cities including Ibadan and Lagos, the empty supermarket spaces have led to lower foot traffic in malls while many shop owners continue operating with reduced sales as they wait to see whether the brand will return.

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