Shoprite Nigeria Closes Stores Amid Operational Struggles 4 Years After Ketron Takeover

Four years after Nigerian businessman Tayo Amusan’s Ketron Investment Limited, a subsidiary of Persianas Group, took over Shoprite Nigeria, the retail giant continues to face operational challenges leading to store closures in major cities. Shoprite outlets in Ilorin, Kwara State, and Ibadan, Oyo State, have closed amid weak consumer spending, rising operational costs, and stiff competition. Other key outlets in Lagos and Abuja have been reported to suffer from understocking and dwindling customer traffic.

The closures signify broader economic pressures impacting large-scale retail in Nigeria, such as double-digit inflation, rising rents—like the ₦66 million monthly rent reported for the Kano Ado Bayero Mall store—foreign exchange shortages, and supply chain disruptions. These factors have eroded profitability and made the big-box store model less sustainable.

Despite these setbacks, Shoprite Nigeria management affirms they are not exiting the market. They are restructuring with a shift in business strategy, focusing more on smaller stores and strengthening local supply chains to adapt to Nigeria’s economic realities. The turnover of ownership from Shoprite International to local investors under Ketron in 2021 was initially seen as a boost to local retail expansion, but the operational realities have since forced a recalibration of ambitions.

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The impact extends beyond Shoprite’s operations, affecting thousands of employees and local suppliers reliant on the retailer’s procurement contracts. Competitors such as Hubmart and Market Square, alongside e-commerce platforms like Jumia, are trying to fill the gap, but the retail environment in Nigeria remains challenging due to high costs and weak consumer purchasing power.