Shoprite Sends Message to Nigerians Amid Shutdown Rumours
- Retail chain Shoprite has dismissed rumours that it has shut down operations in Nigeria
- The supermarket chain explained that it only closed some outlets across the country
- The company has confirmed plans to open two new stores in Lagos as part of a restructuring strategy
Legit.ng journalist Dave Ibemere has experience in business journalism, with in-depth knowledge of the Nigerian economy, the stock market, and broader market trends.
Retail chain Shoprite has denied reports suggesting it has exited the Nigerian market, stating that it remains fully operational and is expanding with new stores in Lagos.
The clarification comes after speculation that the supermarket chain had shut down operations following reports that some of its outlets had closed in recent months.
Source: Getty Images
Shoprite denies plans to leave Nigeria
Bunmi Adeleye, Chief Strategy Officer of Retail Supermarkets Nigeria Limited, the company that manages the Shoprite brand in Nigeria, said the retailer is currently executing a turnaround plan aimed at reinforcing its operations in the country.
She explained that the restructuring initiative began in August 2025 after the firm received the necessary approval to launch the programme, ThisDay reports.
According to Adeleye, the process follows a structured timeline with key milestones set for the first 90 days, six months and 12 months.
She said the company has already completed the first 90-day phase and achieved the six-month milestone in February, and is now progressing toward the next stage of the programme.
As part of the ongoing restructuring, the retailer plans to open two new outlets later in March at Circle Mall in Jakande and The Palms Shopping Mall in Oniru, Punch reports.
Adeleye noted that the new stores form part of a phased expansion strategy aimed at refining store formats, boosting operational efficiency and strengthening the brand’s footprint in Nigeria.
She said:
“We have milestone timelines for the turnaround programme that we are working with. We set targets for the first 90 days, six months and 12 months. We are just concluding the six-month milestone and are now moving toward the 12-month milestone."
Source: Getty Images
Shoprite explains shutdown rumours
Shoprite said speculation about a possible shutdown may have arisen following the closure of some of its outlets in recent months, stressing that the exits were part of operational restructuring rather than a plan to leave the Nigerian market.
The company explained that some of its operational difficulties are linked to running stores in large shopping malls, where rent negotiations became more complicated after Nigerian investors increased their participation in mall ownership.
In several cases, lease agreements were priced in United States dollars, which significantly raised operating expenses and made certain locations financially unviable.
At one outlet, the retailer revealed that rent consumed more than half of the store’s revenue, leaving the company with no option but to exit the location after talks with the landlord failed.
After the closures, some of the retail spaces were left vacant, while others were subsequently leased to new tenants at lower rental rates.
Shoprite reviewing store formats in Nigeria
As part of its restructuring strategy, the company is also reviewing its store formats and exploring smaller neighbourhood outlets.
According to Adeleye, the move is aimed at reducing operational expenses such as rent, electricity and diesel while adapting to changing consumer shopping habits.
Despite the speculation surrounding its operations, the company said it continues to operate about 23 stores across 14 states in Nigeria.
Shoprite outlet shut by Lagos tax authority
Earlier, Legit.ng reported that the Lagos State Internal Revenue Service (LIRS) has sealed the Shoprite outlet at Ikeja City Mall over what it described as the company’s failure to comply with its tax obligations.
According to a notice displayed at the entrance of the store, LIRS took the action in line with provisions of the law, The Cable reported
In the notice, the LIRS stated that the alleged breach is punishable under Section 94 of the Personal Income Tax Act, 2011 (as amended).
Source: Legit.ng
