By Olatunbosun Obafemi
ShopRite, Africa’s largest retail chain, is facing mounting operational challenges in Nigeria, forcing the closure of several outlets and raising concerns over the future of modern retail in the country.
Across key cities including Ibadan, Ilorin, Abuja, and Kano, ShopRite stores have either been shut down or left with near-empty shelves, leaving workers, suppliers, and customers unsettled. Investigations by Daily Trust and Pulse revealed that many branches are scaling back operations drastically, while others have been closed permanently.
The closures highlight the strain of Nigeria’s worsening economic climate on foreign and domestic retailers alike. In January 2024, ShopRite shut its Kano branch at Ado Bayero Mall, citing “sub-optimal performance” and an unfriendly business environment. A few months later, its Abuja outlet at Wuse Central Mall was also closed after management declared the store financially unsustainable. By mid-2025, reports emerged that stores in Ibadan and Ilorin had been temporarily shut, while those in Lagos and Abuja operated with bare shelves.
Industry experts point to a combination of factors driving the crisis. Spiralling inflation, a volatile foreign exchange market, and dwindling consumer purchasing power have eroded sales. “The truth is Nigerians are buying less, and imported goods are priced beyond what most families can afford,” said an Ibadan-based retail analyst.
Operational costs have also soared. ShopRite outlets located inside prime shopping malls face high rents, while unstable electricity supply has forced heavy reliance on diesel generators, further squeezing profit margins. Import duties and logistical bottlenecks have compounded the problem, making it difficult to stock shelves consistently.
The current crisis has its roots in ShopRite’s 2021 transition, when the South African parent company exited Nigeria and handed over operations to Retail Supermarkets Nigeria Limited (RSNL), a locally owned firm. Since then, the new owners have been under pressure to adapt to Nigeria’s tough business climate, balancing supply chain disruptions with declining foot traffic.
Speaking during an earlier closure in Abuja, ShopRite management explained: “The decision followed a careful evaluation of financials and the prevailing business environment. We remain committed to serving Nigerians but will focus only on locations that are commercially viable.”
For staff members, the shutdowns have been devastating. A former employee at the Kano branch described the closure as a shock: “We just got notice that the store would not reopen. Many of us lost our jobs overnight.” Customers, too, have expressed frustration. In Ibadan, a resident who frequented the store lamented: “ShopRite used to be the only place you could find everything under one roof. Now we’re left with local supermarkets that are either too small or more expensive.”
Despite the setbacks, ShopRite’s management insists it has not abandoned the Nigerian market. Plans are reportedly underway to open new outlets in areas considered more sustainable, while consolidating operations in struggling branches.
The closures, however, underscore the broader struggles of Nigeria’s formal retail sector. From South African giant Mr Price to international brands like Woolworths, many foreign retailers have either scaled back or exited entirely, citing similar operational hurdles.
As Nigeria battles inflation, high energy costs, and a weakening naira, ShopRite’s troubles serve as a warning that without urgent reforms, the country risks losing more investors in the formal retail space—leaving consumers with fewer choices and higher prices.
