Shoprite Nigeria is planning to reopen with standalone neighbourhood stores as part of efforts to reduce operating costs and revive its business following financial difficulties.
Gatekeepers News reports that Adekunle Adebiyi, executive director of investments at MBO Capital Management Limited, disclosed this during an interview on Nairametrics’ Drinks and Mics programme.
Adebiyi said three Shoprite stores had reopened after the company temporarily shut down operations to negotiate with suppliers and address outstanding financial obligations.
“We took a very, very drastic decision to just shut everything down whilst we negotiated with suppliers. Now three stores are back open,” he said.
He explained that the company would focus on smaller standalone supermarkets in residential neighbourhoods rather than relying mainly on large shopping malls.
Adebiyi said the approach would allow the retailer to concentrate on supermarket operations without committing substantial capital to property development.
He also identified foreign exchange volatility as a major factor behind the company’s financial difficulties, noting that about 17 of its 28 stores had rent agreements denominated in dollars at the time of the acquisition.
According to him, the depreciation of the naira increased rental costs and placed additional pressure on the company’s finances. He added that some outlets faced rental expenses significantly above the 8 to 10 per cent of revenue that rent would typically represent for a supermarket.
The MBO Capital executive also cited inventory management problems and the loss of access to the enterprise resource planning system used by Shoprite’s former parent company as challenges that affected operations. Replacing the system, he said, required billions of naira in additional investment.
Shoprite’s Nigerian operations were acquired by local investors in 2021 after South African retailer Shoprite Holdings decided to exit direct ownership of the business. The franchise is now operated by Retail Supermarkets Nigeria Limited.
In March 2026, the company said it was restructuring its operations rather than leaving Nigeria, with plans to reopen outlets at The Palms Shopping Mall in Oniru and Circle Mall in Jakande, Lagos.
However, the company has yet to disclose the number of standalone neighbourhood stores it plans to open, their locations or the timeline for the expansion.
