Shoprite Plans Smaller Supermarkets to Revive Nigerian Operations

Shoprite is implementing a recovery strategy in Nigeria by opening smaller neighborhood supermarkets after financial difficulties forced the retailer to temporarily shut down operations. Adekunle Adebiyi, Executive Director of Investments at MBO Capital Management Limited, disclosed that three outlets have resumed operations following negotiations with suppliers to address outstanding financial commitments.

The new strategy aims to reduce operating expenses and focus on supermarket operations rather than large shopping malls. Adebiyi noted challenges such as foreign exchange volatility, which affected rental agreements, and difficulties in securing bank loans due to insufficient physical assets.

He also mentioned inventory management issues and the need for significant investment to replace the enterprise resource planning system previously provided by the former parent company. Shoprite Nigeria's recovery follows a change in ownership in June 2021 when a consortium led by Persianas Investment Limited acquired the business from South Africa's Shoprite Holdings.