Retail Supermarkets Nigeria Limited (RSNL), operators of the Shoprite franchise in Nigeria, has denied reports suggesting that it is shutting down operations in the country.

In a statement, the company said it was undergoing a “comprehensive business model reset” to respond to Nigeria’s current economic realities.
“The former business model, inherited after the company’s acquisition, heavily relied on large store formats, imports, and high overheads. This model is no longer viable in the face of Nigeria’s current economic climate, which includes exchange rate volatility, rising inflation, and constrained liquidity,” the statement read.

The company explained that 80 per cent of its products are now sourced locally and that the new structure was designed to stabilise operations and reposition Shoprite for long-term growth.
“This reset is built on several key pillars: local supply chains, with over 80% of products now sourced in Nigeria,” it said.

Chief Strategy Officer of RSNL, Bunmi Adeleye, described the process as a rebuilding phase.
“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,” she said.

The clarification followed media reports of empty shelves in several outlets and the closure of stores in Ilorin and Ibadan. At the Ikeja City Mall in Lagos, customers encountered scanty displays, with large sections of groceries and wines missing.

Shoprite has faced significant challenges since its South African parent company exited Nigeria in 2021 and sold the business to local investors.

The retailer has battled rising operational costs, foreign exchange pressures, and stiff competition from local and online supermarkets.

Despite the challenges, RSNL said operations would normalise by the end of September after the conclusion of its annual financial audit. “By God’s grace at the end of September we will restock,” a management staff said, dismissing fears of a shutdown.

Since its entry into Nigeria in 2005, Shoprite has employed over 2,000 people directly and supported thousands more in local supply chains, particularly farmers. The company said the new strategy would preserve that role while repositioning its business in a difficult economic climate.