Nigeria’s mall economy estimated at about N2.5 trillion has just taken a major hit following the final shut down of the leading brand in the sector, Shoprite, across the country after 20 years of active operation.
Going by analysts’ projections, about N1.4 trillion may have gone down with the epic collapse of the retail giant as hundreds of other ancillary businesses that depended on its operations have now become collateral damages.
Findings also reveal that the development has severely affected thousands of individuals who are direct employees and suppliers to the retail giant along with hundreds of thousands householders dependent on the Shoprite businesses.
ShopRite had previously served as a reliable bulk purchaser for food items, beverages, household goods and locally manufactured products.
The closure has also impacted other businesses operating within the same complexes. ShopRite served as an anchor tenant, drawing significant customer traffic that benefited smaller outlets such as boutiques, eateries, pharmacies and cinemas.
Inside sources attributed the collapse to a prolonged financial strain and persistent inventory shortages affecting its Nigerian franchise, Retail Supermarkets Nigeria Limited (RSNL).
Shoprite entered Nigeria in 2005 to transform Nigerians’ experience of grocery and general household shopping.
The continental retail giant quickly expanded to about 25 outlets across 13 states of Nigeria possibly due to rapid adoption by Nigerians.
However, in the aftermath of the COVID-19 pandemic, border closures, foreign exchange shortages, rising import tariffs and logistics costs combined to pressure the business.
In 2021, Shoprite Holdings Limited of South Africa exited direct ownership, selling Shoprite Nigeria to Ketron Investment Limited, a consortium led by Persianas Investment Limited, owners of The Palms Mall and other retail properties.
Shoprite Nigeria was to operate as a private entity under a franchise arrangement, with administrative and technical support from the South African parent.
At the time, assurances of continuity helped calm public anxiety, and under Nigerian ownership led by entrepreneur, Toby Amusan, confidence briefly returned.
Festive seasons saw renewed activity, with Shoprite vouchers commonly exchanged as gifts, and families once again flocking to the stores, especially during public holidays.
Gradual shutdown…
That optimism suddenly faded sometime in 2024 at few locations as shoppers began noticing persistently empty shelves across multiple outlets. Items as basic as tissue papers and food staples became scarce, with some stores stocking little beyond wine, detergents or toys.
By fourth quarter of 2025, several outlets in Lagos and other cities shut their doors entirely.
Multiple visits to Shoprite locations in Lagos show deserted premises where bustling supermarkets once anchored mall activity.
Not an exit, but a reset?
On the future of the Shoprite brand in Nigeria, RSNL said the company was not exiting Nigeria but undertaking a “comprehensive business model reset” to align with economic realities.
Chief Strategy Officer Bunmi Cynthia Adeleye, said the reset was aimed at sustainability amid macroeconomic headwinds. Yet, for many businesses already affected, the timeline for a comeback remains unclear. For now, questions linger over when or if Shoprite outlets will resume operations at scale.
Until then, the shutdown continues to weigh heavily on Nigeria’s mall economy, consumer confidence, and the interconnected web of small businesses that once thrived in its shadow.
For vendors who built their livelihoods around the daily hum of Shoprite shoppers, the silence has been costly, and the wait for revival uncertain.
Some insights it the nation-wide winding down operation had come early in 2024 from Kano.
How Kano outlet closed
Shoprite outlet in Ado Bayero Mall, in Kano was one of the early shut down executed by the company. It was closed in January 2024. The mall which is known for its beehive of activities, now records low foot falls with the shops in skeletal operations.
As at the time of filing in this report, the space occupied by Shoprite in the mall remains under lock with other stalls empty or unoccupied.
Hubertus Rick, the Chief Executive Officer, CEO, of Retail Supermarkets Nigeria Limited, operators of Shoprite brand in Nigeria, in a letter addressed to its employees announcing the shut down of the store, said the decision was after careful evaluation of the financial situation of the store and the current business climate.
In his words, Rick said, “I regret to inform you that our Store in Ado Bayero Mall, Kano, Kano State will be closing its doors on January 14, 2024. This decision was not made lightly, as we understand the impact it may have on our employees and the community.
‘‘However after careful evaluation of the financial situation of the store and the current business climate, we believe it is the best course of action for the long-term growth of our organization.
“We understand that this news may be difficult to digest, and we want to assure you that we are here to support you during this transitional period.
Your well-being is our top priority, and we will do everything we can to assist you in finding new opportunities within our company. We encourage you to apply for any vacant positions in our existing stores across the country through the Human Resources department.
“Additionally, we will be opening new stores in the coming months, and you are welcome to apply for employment there as well.
“As we navigate this transition, we will ensure that the process is as seamless as possible for everyone involved. In the upcoming days and weeks, we will provide you with more information regarding severance packages and other important details.”
However, residents familiar with the development, said the closure of ShopRite could not be unconnected to unfavorable competition between the store and indigenous stores that sprang up meters away from the Ado Bayero mall.
Lagos completes shut down process:
The shutting down processes started in Lagos around middle of last year with Apapa location which began scaling down the stocks recording skeletal shelf as far back as May 2025.
A fashion shop operator inside Apapa Mall where Apapa Shoprite is located, who spoke to Vanguard, said sales dropped sharply after the supermarket shut down around August 2025. “There are days we don’t sell anything, and that never used to happen,” she said, adding, “People came to Shoprite for groceries and then walked around to buy other things. Now, only a few returning customers still come to patronize us.
“Let’s hope that a new supermarket takes over the vicinity. Our mall manager said we should expect one of the new popular supermarkets to take over the space; this should help return activity to the mall.”
Same experience was recorded at Lekki outlet about the same time, though some of the business owners in this outlet were positive that their sales would pick up in no time with the new occupant being expected.
However, businesses at the left wing of the mall complained of low patronage. A shop owner selling hand held devices protector said, “This Shoprite outlet shut down early December 2025, even though their shelves had become empty just before the final wind down.
Even with the new occupant, sales only shifted to the right wing while the left wing continues to suffer. Many customers just walk in straight to the new supermarket, totally ignoring our wing. We hope that sales will return to this vicinity.”
At Shoprite Festac Mall, the vicinity which houses a popular 5-star hotel, was still buzzing at the time our reporter visited. There were still side attractions to make people visit the mall – the club, the hotel, and an sporting arena.
However, other businesses inside the mall are feeling the hit. A sports shoe seller told our reporter that the closure of Shoprite outlet in the mall has deeply affected their sales. According to him, some shops are not even making any sale and have reduced physical presence.
“There are shops here that open once or twice a week as they keep testing the sales flow, but suddenly most of those shops closed.
‘‘For instance, a few weeks ago, I called one of the shop owners close to ours that stopped opening, and she said she is depressed because of no sales. Since the end of last year and this year, she couldn’t sell anything.
“As for us, when Shoprite was here, we could make more than N2.5 million in a week, but now we barely make N1.0 million, and that’s a huge difference.
‘‘It’s even tougher when you have to pay light bills and other maintenance bills, yet you’re not making enough sales to cover up. Many times, we have had to keep reminding our customers that we still exist within the Shoprite vicinity. ‘‘We haven’t recorded any new customers since the closure of Shoprite; it has been returnees. During the time Shoprite was open, we saw many people trooping in to check our shoes; even if they weren’t going to buy, they would say, ‘Oh, I will return soon to buy this and that.’
‘‘Honestly, it hasn’t been easy, and we hope that businesses can pick up again.”
Akure stakeholders lament:
Reports from Akure, Ondo State, reflect the growing hardship facing workers, suppliers and adjoining businesses after the Shoprite Akure, located along Igbatoro Road, shut its doors.
A visit to the once-busy retail outlet on Thursday revealed a gloomy scene as the facility was under lock and key, while its transparent glass doors exposed empty shelves and deserted aisles, a sharp contrast to the bustling shopping hub it once represented.
For former employees, the shutdown has translated into sudden job loss and forced career shifts.
Fatima Ogundari, a former sales attendant at the store, said the closure left many workers stranded without alternatives.
“Since the mall closed down, I had no choice but to start a POS business just to survive. It was not what I planned for myself, but we were not given any clear information on when or if Shoprite will reopen. Many of us are still hoping, but hope does not feed families.”
She lamented that several of her colleagues were still searching for new means of livelihood.
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