Nigeria’s Shoprite shuts all stores after 20 years despite local takeover

Nearly five years after Nigerian mogul Tayo Amusan led a consortium to acquire the local franchise of Shoprite, the supermarket chain has shut its stores across the country, bringing an end to two decades of operations that once reshaped modern grocery shopping in Nigeria.

The closure follows years of financial pressure on Retail Supermarkets Nigeria Limited (RSNL), the operator of the brand in the country. Amusan’s Ketron Investment Limited, a subsidiary of Persianas Group, acquired the business in 2021 after South Africa’s Shoprite Holdings decided to sell its Nigerian unit to focus on its core markets. At the time, the deal was seen as a move that would place one of Nigeria’s largest retail brands firmly under local management.

Shoprite reset falters amid Nigeria pressures

RSNL had earlier described its efforts as a “reset” designed to adjust to the realities of Nigeria’s economy, including currency swings, high inflation and limited access to foreign exchange. Executives acknowledged that the retailer’s traditional model — large stores dependent on imported goods and heavy operating costs — had become increasingly difficult to sustain.

Instead, the company had planned to move toward smaller outlets, expand local sourcing and reduce reliance on imports. Management said more than 80 percent of products sold in its stores would come from Nigerian suppliers while private-label products would help keep prices lower for shoppers. At the time, RSNL’s Chief Strategy Officer Bunmi Cynthia Adeleye sought to reassure the public that the brand was undergoing restructuring rather than shutting down.

“Yes, it has been a tough period, but this is not a collapse; it is a reset,” Adeleye said. “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.” The latest closures suggest the challenges proved harder to overcome. People familiar with the situation say the business struggled with prolonged financial strain, periodic shortages of inventory and rising operating costs that affected stores across several cities.

Shoprite exit hits suppliers, mall tenants

For years, Shoprite had been a steady buyer of food, beverages and household goods from both international and Nigerian suppliers. The shutdown has also affected businesses located inside the same shopping centers. In many malls, Shoprite served as the anchor tenant, drawing customer traffic that helped support smaller businesses such as boutiques, pharmacies, restaurants and cinemas.

Shoprite first entered Nigeria in 2005, introducing a modern supermarket format that quickly gained popularity among middle-class shoppers. Over time, the retailer expanded to about 25 stores across 13 states, becoming a familiar presence in cities including Lagos, Abuja and Ibadan. But conditions began to shift after the COVID-19 pandemic, as border restrictions, foreign-exchange shortages, higher import tariffs and logistics costs squeezed margins for retailers that depended on global supply chains.

Shoprite closure highlights Nigeria retail strain

Financial records from June 2020 already pointed to strain. At the time, the Nigerian operation reported $125 million in assets against $140 million in liabilities, reflecting the pressure facing the business even before the ownership change. Amusan’s acquisition through Ketron Investment was part of an effort by Persianas Group to expand across retail, hospitality and real estate. The group already owns several shopping centers, including The Palms Mall in Lagos.

The shutdown of Shoprite’s stores now underscores the difficulty of running large-scale supermarket chains in Nigeria, where consumer spending remains under pressure and operating costs continue to climb. For Nigerian shoppers the locked doors mark the end of a brand that once symbolized a new era of modern retail in the country. The outcome also reflects the wider challenge facing retailers trying to balance rising costs, supply disruptions and cautious consumer spending in Africa’s most populous nation.