Shoprite Shuts Stores in Major Cities 4 Years After Tayo Amusan’s Takeover

Four years after Tayo Amusan’s Ketron Investment Limited took over Shoprite’s Nigerian operations, the retail giant is facing fresh setbacks with the closure of outlets in key cities. 

The move signals the deepening struggles of modern retail in a market where high costs, weak consumer demand, and shifting shopping habits are reshaping the business landscape.

Another blow to Nigeria’s biggest supermarket brand

Shoprite’s recent shutdowns have affected its stores in Ilorin, Kwara State, and Ibadan, Oyo State. For many shoppers, these outlets had been more than just supermarkets, they were gathering points for families and hubs for weekend shopping trips. 

But in recent months, reports of dwindling crowds and declining sales foreshadowed what was to come.

In Ibadan, both the Ring Road and Mokola branches were abruptly closed, with notices pasted on their doors citing challenges “beyond immediate control.” While the management initially assured customers that efforts were underway to resume operations, those promises never materialized.

The closures add to a list of setbacks for Shoprite in Nigeria. Just last year, the company pulled out of Wuse, Abuja, following what it described as a “thorough review” of the store’s financial outlook.

Why Shoprite is struggling in Nigeria

When Tayo Amusan’s Ketron acquired Retail Supermarkets Nigeria Limited (RSN) from its South African parent in 2021, the deal was framed as a win for local ownership. 

Amusan, through his Persianas Group, envisioned Shoprite as the cornerstone of a broader retail and real estate expansion strategy.

However, running large-format supermarkets in Nigeria has proven far more difficult than expected. The closures highlight three key challenges:

• Weak consumer spending: Inflation and currency depreciation have slashed purchasing power, forcing households to prioritize essentials and abandon bulk shopping trips once common at Shoprite.
  
• High operating costs: Rent, utilities, and logistics expenses have made it difficult for outlets in malls like Kano’s Ado Bayero Mall and Ibadan’s retail spaces to remain profitable.
  
• Competitive pressure: Smaller neighborhood stores and open markets, which offer more flexible pricing and lower overheads, have remained the preferred choice for many shoppers.
  

These hurdles are not new. Even before Ketron’s acquisition, Shoprite Nigeria had a strained balance sheet, with liabilities exceeding assets by mid-2020. The takeover was supposed to be a turning point, but the closures suggest the deeper structural problems remain unresolved.

What this means for Nigeria’s retail future

Shoprite’s retreat is a sobering reminder of the volatility of Nigeria’s consumer market. For investors, the closures illustrate how large-scale retail is still a high-risk venture in a country where infrastructure challenges, rising inflation, and unpredictable consumer behavior create a tough operating environment.

For shoppers, especially in cities like Ilorin and Ibadan, the loss of Shoprite outlets means fewer options for affordable bulk shopping and fewer modern retail spaces that provide a different experience from traditional markets.