Corporate

Shoprite Stores Shut in Ibadan, Ilorin While Lagos, Abuja Outlets Struggle with Empty Shelves.

Reports from multiple news outlets confirm that Shoprite, once a dominant supermarket chain in Nigeria, has shut down several outlets in Ibadan and Ilorin. At the same time, other branches, especially in Lagos and Abuja, are now facing serious supply shortages. These developments come as part of a growing narrative about Shoprite’s difficulties since it changed hands from its original South African owners.

What’s Going On in Ibadan and Ilorin

In Ibadan, Shoprite outlets at Ring Road and Mokola are closed, and the closures are marked by public notices at the entrances. These notices cite “circumstances beyond immediate control” as the reason for the shutdowns. Management promised customers that operations will resume, but no firm date has been given.

In Ilorin, Shoprite stores are fully closed, with staff and customers confirming that doors have been shuttered. Responsibility for this stoppage is being linked to supply issues, rising costs, and negotiations between the supermarket’s management and its various suppliers.

Lagos and Abuja: Shelves Are Thinning

Outlets in Lagos and Abuja are still operating but under severe strain. A Daily Trust investigation found that many products are missing or in short supply. Grocery sections, frozen foods, wine and other staple items are often half stocked or entirely missing. At the Ikeja City Mall branch, shoppers reported minimal groceries available and noticeably reduced variety in product shelves. In Abuja, especially at Jabi Lake Mall, shoppers saw many empty racks and reduced foot traffic.

Why This Is Happening

Several factors are being cited in the reports. Inflation and foreign exchange volatility are pushing up operating costs for imports and supply chain. Rising rent and utility costs also make running large retail outlets more expensive. Shoprite’s management is said to be renegotiating with suppliers to secure products at sustainable prices. The change in ownership and supply contracts has added complexity to the process.

Experts warn that the business environment in Nigeria has become harsh for big retailers. Multinational firms in other sectors have exited Nigeria or scaled down operations citing business cost, currency instability, and regulatory pressures. Shoprite’s decline is being seen as part of this broader corporate exodus.

Reactions and Concerns

Employees at affected branches are worried about job security as shutdowns and supply interruptions continue. Customers are also anxious, especially those who depend on Shoprite for imported goods or specific brands that are hard to find elsewhere. Many are asking whether this is a temporary setback or the start of a permanent retreat from Nigeria.

Shoprite officials have reportedly promised that operations will continue where possible and that restocking efforts are underway. They cautiously say that negotiations are ongoing with suppliers and that the supply chain issues will be resolved. But there is no clear timeline yet.

What This Means for the Nigerian Retail Landscape

The scale of Shoprite’s struggles could have ripple effects. Local supermarkets may see increased business if customers shift away from Shoprite. But supply chain stresses may also affect them, especially for imported goods. Rising prices may be passed on to consumers. Job losses are possible in affected areas if branches remain closed. Furthermore, this episode reinforces concerns about foreign exchange risks, import dependence, business trust, and the viability of large multinational retail operations in Nigeria.