Oct 24, 2026

Shoprite to Reopen with Smaller Neighbourhood Outlets After Costly Shutdown

By Afolabi Olaiya Idowu in news

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Lagos, Nigeria—October 24, 2026—Shoprite Nigeria is set to reopen with standalone neighbourhood stores as part of a major restructuring aimed at reducing costs and reviving its operations after months of financial challenges.

Adekunle Adebiyi, Executive Director of Investments at MBO Capital Management Limited, an investor in the retailer, disclosed the plans during an interview on Nairametrics’ Drinks and Mics programme.

Temporary Shutdown and Recovery Steps

Adebiyi explained that the company took a drastic decision to shut down operations temporarily to negotiate with suppliers and settle outstanding financial obligations. Three stores have since reopened.

“We’re going to be opening standalone neighborhood stores, which was always the plan,” he said. The shift away from large shopping malls will allow the retailer to focus purely on supermarket operations without heavy capital tied up in property development.

Supermarkets typically lease commercial spaces and invest mainly in equipment such as shelves and refrigeration systems rather than owning buildings.

However, Adebiyi noted that this model created financing difficulties in Nigeria, where banks prefer tangible assets as collateral. MBO Capital faced similar hurdles during the 2021 acquisition of Shoprite’s Nigerian operations.

Challenges Behind the Restructuring

Foreign exchange volatility played a major role in the difficulties. About 17 of the 28 stores had dollar-denominated rental agreements at the time of acquisition.

The subsequent depreciation of the naira significantly increased rental costs, which in some locations far exceeded the ideal 8–10 percent of revenue.

Other pressures included rising operating expenses, inventory management issues and the costly replacement of the former parent company’s enterprise resource planning system.

Shoprite Holdings of South Africa sold its Nigerian operations in 2021 to a consortium led by MBO Capital and Persianas Investment through Ketron Investment Limited. The franchise is operated by Retail Supermarkets Nigeria Limited.

The company has previously closed outlets in Abuja and Kano and has been exploring smaller formats to cut rent, electricity and diesel costs while planning reopens at The Palms and Circle Mall in Lagos.

The neighborhood store strategy is expected to bring Shoprite closer to customers, lower overheads, and create a more sustainable model suited to Nigeria’s current economic realities.