Retail Giant Shoprite Provides Insight on Closing Stores Nationwide in Nigeria
Shoprite Nigeria LLC Announces Rebuilding Phase and Shift Towards Local Supply Chains
Retail Supermarkets Nigeria Limited (RSNL), the operator of Shoprite in Nigeria, has reaffirmed its commitment to remaining in the country and has announced a significant shift in its business model. The company is currently undergoing a 'business model reset' to adapt to Nigeria's current economic realities.
The rebuilding phase is supported by new investors, including Ketron Investment Limited, led by Nigerian businessman Tayo Amusan. This investor backing underpins efforts to shift from large store formats and imported goods to a business model aligned with Nigeria’s economic realities.
The specific states where Shoprite outlets are thinning have not been disclosed in the company's statement. However, the company is facing challenges in some states due to the thinning of outlets. To address these challenges, the Shoprite reset strategy is anchored on several key pillars, including local supply chains.
Currently, 80% of Shoprite's products are sourced within Nigeria. The changes are expected to stabilize operations and reposition the Shoprite brand for long-term growth. The company aims to return bigger and stronger to better serve its Nigerian customers.
The old business model of RSNL was heavily reliant on large store formats, imports, and high overheads, which are no longer viable in the current Nigerian economic climate. Shoprite is being rebuilt to be more local, culturally relevant, more affordable, and more resilient.
The reset strategy includes strengthening local supply chains and reducing reliance on imports. This approach is expected to make the business more affordable and resilient amid current economic challenges. The company's statement did not provide details about the specific states where outlets are thinning.
New investors and the company did not disclose any plans for new store openings or expansions in Nigeria at this time. Despite the challenges, Retail Supermarkets Nigeria Limited remains committed to its Nigerian operations and is working towards a more sustainable and resilient business model.
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