We’re not shutting down, says ShopRite
Retail Supermarkets Nigeria Limited (RSNL), the operator of the Shoprite franchise in Nigeria, has reaffirmed its commitment to continue doing business in the country.
Daily Trust reported how the retail outlet is nearly becoming empty, drawing close to the brink of exit.
The firm, backed by new investors, in a statement, clarified the current business operations, saying it is undertaking a comprehensive business model reset to align with Nigeria’s economic realities.
“The former business model, inherited after the company’s acquisition, heavily relied on large store formats, imports, and high overheads.
“This model is no longer viable in the face of Nigeria’s current economic climate, which includes exchange rate volatility, rising inflation, and constrained liquidity,” the statement reads.
It stressed that the new business model was designed to become less dependent on imported products, saying that 80 per cent of its products are sourced in the country.
It added that the new model would stabilise operations and reposition the business for long-term growth.
“This reset is built on several key pillars: local supply chains, with over 80% of products now sourced in Nigeria,” the statement reads.
The firm’s Chief Strategy Officer, Bunmi Adeleye, described the present process of the business as a rebuilding phase, stressing that the business outlook is targeted to become more local.
“Yes, it has been a tough period, but this is not a collapse; it is a reset. The old model did not work for Nigeria. With new investors behind us, we are rebuilding Shoprite to be more local, culturally relevant, more affordable, and more resilient. We are coming back bigger and stronger to serve Nigerian customers better than ever before,” she said.
