The Digest:
South African retail giant Shoprite is rapidly fading from Nigeria’s market, with stores closing in Ibadan and Ilorin and severe stock shortages plaguing outlets in Lagos and Abuja. The decline reflects broader multinational exits amid Nigeria’s challenging economic climate. Rooted in the Storm.
Key Points
- Shoprite outlets in Ilorin and Ibadan are closed indefinitely due to operational struggles.
- Stores in Lagos (Ikeja City Mall) and Abuja (Jabi Lake Mall) face empty shelves and low foot traffic.
- The brand’s decline stems from inflation, forex volatility, high rents, and local competition.
- Shoprite’s former South African owners exited in 2020, selling to Nigerian investors.
- Staff express anxiety over job security as supply shortages persist for months.
- The retailer’s woes mirror exits by GlaxoSmithKline, P&G, Sanofi, and Bolt Food since 2023.
- Economists warn of more corporate departures if Nigeria’s business environment remains hostile.
Shoprite’s unraveling symbolizes the deepening crisis for multinationals in Nigeria, where economic headwinds threaten to erase decades of foreign investment and retail transformation.
Sources: Daily Trust
