AS Nigerians continue to raise questions over empty shops that dotted Shoprite branches across the country, Retail Supermarkets Nigeria Limited (RSNL), the operator of Shoprite franchise, said the company was undergoing an ‘economic reset’ while countering reports of a planned exit from Nigeria.
The company, in a statement on Friday, September 19, countered its purported exit from Nigeria as reported by some media outlets.
“The current development was not an exit move but part of a ‘reset’ of its business model aimed at stabilising operations and adapting to prevailing economic realities,” the company said, adding that “a turnaround programme backed by new investors to adapt to Nigeria’s economic realities is currently ongoing, including exchange rate volatility, rising inflation and liquidity constraints.
According to RSNL, its old model of operating large-format stores with heavy reliance on imports and high overhead costs was no longer sustainable.
The reset, it said, would focus on smaller, more efficient store formats, stronger local supply chains with over 80 per cent of products sourced in Nigeria, and private-label affordability options.
The outfit said the strategy would also include better liquidity management and efficiency improvements, such as energy optimisation and cost savings across stores.
The statement quoted the Chief Strategy Officer at RSNL, Bunmi Cynthia Adeleye, as saying, “Yes, it has been a tough period, but this is not a collapse; it is a reset. The old model did not work for Nigeria.
“With new investors behind us, we are rebuilding Shoprite to be more local, culturally relevant, more affordable, and more resilient. We are coming back bigger and stronger to serve Nigerian customers better than ever before.”
The company stressed that it remained committed to Nigeria and would continue to serve its millions of customers and suppliers as part of its long-term growth plan.
Sixteen years after opening its first outlet in Nigeria, Shoprite Holdings Limited, reputed to be Africa’s largest food retailer, finally packed up and sold its Nigerian operations to local investors, The ICIR reported.
The company sold its stake to Ketron Investment Ltd, a Nigerian company owned by a group of local investors led by Tayo Amusa of Persianas Investment Ltd, a property firm.
Amusan, in reaction to the acquisition in 2021, said the development ushered in a new era that called for expansion for greater impact.
“We are thrilled to complete the acquisition of Shoprite, ensuring the continued operations of one of the biggest retail success stories in Nigeria,” he said.
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.