Nigeria’s N2.5trn mall economy takes hit as Shoprite completes shut-down

2026-03-07 - 05:57

•From retail giant to empty shelves, how it happened •Not an exit, but a reset? – owners speak •Workers, households, small businesses reel as collateral damages increases By Cynthia Alo 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. Vanguard’s 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. From retail giant to empty shelves 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. “Some of us worked there for years and built our lives around that job. Losing it suddenly has been very painful,” Ogundari added. A sales representative at Tiata Divine Boutique, who requested anonymity, said the closure had disrupted supply chains and reduced turnover for many local distributors. “Shoprite used to buy in bulk from suppliers, and that helped many businesses grow. Now, suppliers are stuck with unsold products and fewer places to distribute them. It has slowed down their businesses seriously,” the representative said. Other businesses operating within the same mall complex said customer traffic had dropped sharply since Shoprite closed. Mrs. Yusuf Oluwanifemi, owner of Houzz of Niffy Spa, described the development as devastating to her enterprise. “Before Shoprite closed, I attended to more than 20 customers daily. Now, I hardly see up to three customers in a day,” she said. According to her, the decline in patronage forced her to downsize her workforce. “I reduced my sales representatives from five to two, and even with that, paying salaries has become very difficult because business is very slow,” Oluwanifemi explained. Similarly, Mr. Adekunle Segun, proprietor of M&P Phones and Accessories, said the shutdown had compelled him to seek customers outside the mall environment. “We now depend mostly on customers from outside. I advertise my products on social media so I can still make sales,” he said. “If not for online advertising, I would have shut down completely.” Several other shop owners who spoke with our correspondent said they had chosen to keep their businesses running despite the downturn, clinging to the hope that Shoprite would eventually resume operations. “We are just maintaining our shops and praying that Shoprite will reopen,” one tenant said. “Once Shoprite comes back, customers will return.” Concerns mount among workers, suppliers in Ibadan The closure of ShopRite outlets at Dugbe, Ring Road areas of Ibadan has raised concerns among customers, staff and suppliers of the supermarket. When Vanguard visited the ShopRite at Dugbe and the outlet opposite the Oyo State High Court, Ring Road, the places which used to be a beehive of activities have now been turned to playing grounds for young men and women. Before the closure, both outlets had scaled down staff strength and operated limited services. Shelves were sparsely stocked and customer traffic had dwindled significantly. At the time they were still open, the stores had adopted a wholesale pricing model, offering goods to members of the public at reduced rates in a bid to remain competitive and retain customers amid rising inflation and declining purchasing power. Despite these efforts, the stores could not sustain full operations. Today, the once-bustling retail spaces stand largely inactive, with noticeable decline in footfall within the affected malls and surrounding commercial The closure has had significant implications for employees. Dozens of workers, including cashiers, supervisors, cleaners and security personnel, were laid off. A former supervisor at the Ring Road branch, who identified herself as Mrs Adebayo, told Vanguard: “We were first placed on skeletal duties. Only a few of us worked per shift. Eventually, we were informed that the store would close permanently. Many of us depended solely on this job to support our families.” Another former staff member at the Dugbe outlet, Mr. Oladimeji, said: “There were rumours of fraud investigations before the closure, but most of us were not involved in anything of that nature. The economic situation was already affecting sales. When the closure came, it was sudden and painful.” Some members of staff reportedly received basic entitlements, but others claimed that severance arrangements were modest and did not fully cushion the impact of sudden unemployment. Local suppliers and distributors have also been adversely affected. A local food supplier, who requested anonymity, explained: “ShopRite used to buy in large quantities and paid within agreed terms. Since their exit, we have had to look for smaller retailers, and it has affected our turnover.” The loss of a major retail anchor has disrupted supply chains and forced some producers to scale down operations or seek alternative markets. The closure has also impacted other businesses operating within the same complexes. A shop owner at the Ring Road mall stated: “When ShopRite was functioning fully, customers would come to shop and then visit other stores. Since they left, foot traffic has reduced drastically.” Similarly, traders in Dugbe reported a slowdown in commercial activity. Businesses that depended on spillover patronage have experienced declining sales, with some considering relocation. At Dugbe, the proximity of the imposing Cocoa House building to the supermarket may not allow people far away to know that the supermarket is deserted. Vehicles are still parked in its premises but the owners of the vehicles only use the parking spaces and go elsewhere for their shopping. Some petty traders now cluster around the glassy ShopRite building to display their wares. A young lady, Desola, who refused to mention her surname, said she was a staff at the supermarket before it was closed down. “I’m yet to hear any reports since we were asked to stop coming to office. I have to quickly diversify to other things to make ends meet”. Also, one of the suppliers of honey to the supermarket who preferred to be anonymous said, “things have been so tough for me and my family. Though, they are not owing me at all for all the supplies I have made, the little income I used to make from them has stopped and this has made me broke”. At the Ring Road outlet, a passerby may think the supermarket is still in operation because there are people moving up and down but they are not the customers. Some people have rented shops within the premises of the supermarket. Different wares like clothes, groceries and even second hand vehicles are on display in the premises. The entrance to the supermarket is firmly locked. Only few items are seen from outside with security men keeping vigilance. Other staff members, who spoke on condition of anonymity, expressed anxiety over possible job losses, noting that management has yet to provide clear communication on their future employment status. One employee said many workers fear sudden layoffs if operations wind down without a transition plan. Suppliers who depend heavily on ShopRite for product distribution also worry about potential losses. Some local producers noted that the retail chain served as a major sales outlet, and its exit could disrupt business operations, forcing them to search for alternative distribution channels. For Ibadan residents, the closures represented more than the loss of a retail outlet. They signify shrinking informal employment opportunities and reduced access to competitively priced goods. In Ibadan, ShopRite’s closure has created a ripple effect, affecting livelihoods of the ex-staffers, the supplier networks and adjoining businesses. Mall management officials have yet to issue an official statement regarding the situation or possible replacement tenants. ShopRite’s Abuja exit bites hard Empty car parks, shops, and thinning crowds are redefining daily commerce in parts of Abuja where ShopRite had operated outlets, with businesses reporting sharp revenue declines and customer movements. At Silverbird Mall, management sources confirmed that ShopRite stopped operating in the complex since September 2025. The source, who pleaded anonymity, said the supermarket occupied one of the mall’s largest spaces, adding that the departure created an immediate void. According to the mall management, business has not collapsed but the absence of a major anchor tenant has altered customer flow patterns within the complex. The source added that efforts are ongoing to stabilise activity and attract replacement tenants of similar scale. “Generally our property business has been fine but you know Shoprite’s exit has left a void. However, we hope to get another business of their size to fill up the space soon,” the source said. At Nigeria Digital Chambers of Commerce, NDCC, also located within Silverbird Mall, the impact was more visible in daily turnover and visitor numbers. A staff member who didn’t want to be mentioned, said the presence of ShopRite previously acted as a natural traffic driver for digital and entertainment business. The source explained that shoppers often discovered NDCC’s gaming, virtual reality and event services while visiting the supermarket, but added that since the exit, NDCC now spends more on online promotion to compensate for the lost physical traffic. In the morning hours, the usually busy car park at ShopRite, Apo Village, wore a deserted look with vehicles conspicuously absent, a sharp contrast to the once vibrant morning rush that defined the shopping complex. The supermarket itself was under lock and key. “They are no longer here,” a cleaner at the premises told Vanguard plainly, noting that ShopRite packed out since January 2026. A security guard, however, hinted at a possible turnaround. According to him, a new supermarket owned by a Nigerian is expected to take over the space before the end of the month. At Novare Central, the mall formerly housing ShopRite at Wuse Zone 5, Vanguard observed that the ShopRite billboard was no longer visible, with only a few vehicles parked within the premises. Further checks indicated that goods formerly belonging to ShopRite had been evacuated to pave the way for the new operator. A real estate business vendor at the mall said ShopRite exited the branch for a year, describing the period after the exit as one of the toughest for tenants. According to the tenant, several shops closed, some downsized in staffing or repurposed their spaces as sales dropped sharply. “It affected sales drastically. Some tenants converted stores into event halls to survive, while others exited entirely due to weak patronage. The source noted that expectations have begun to improve following the announcement that a new supermarket, SPAR, would take over the former ShopRite space on Friday, February 20th. The operator said the mere news of a replacement tenant had encouraged businesses to return and reopen previously locked shops. The real estate vendor expressed cautious optimism that foot traffic would rebound once the new operator fully resumed operations. “It has really affected sales,” a security guard at the Wuse mall added, noting that the absence of ShopRite slowed commercial activities in the complex. He, however, disclosed that the Wuse outlet under SPAR would be reopened for commissioning. A staff member of Annabel’s Fine Jewellery, a new tenant at the Novare Central mall, also expressed optimism that the jewellery would boom, as past developments following ShopRite’s exit no longer defined the business situation at the mall. Elsewhere at the Lugbe outlet along Airport Road, the story wasn’t different, as the vicinity was relatively quiet, with few cars and sparse foot traffic. The supermarket remained under lock and key. A security man told Vanguard that the store had been shut since June last year and taken over by SPAR. “The only thing standing is their billboard. Nothing is inside the mall,” he said, alleging that ShopRite was owing electricity bills to the Abuja Electricity Distribution Company (AEDC). Another gateman alleged that ShopRite had outstanding rent obligations to the mall management and unpaid salaries and electricity bills spanning several months before its exit. He added that at the Wuse branch, all goods had been removed to enable SPAR’s takeover. For business owners operating within the affected malls, the exit represents more than just a change of brand; it signals a shift in foot traffic and revenue dynamics. How ShopRite Kaduna closed When our correspondent visited the ShopRite outlet on Independence Way by Muhammadu Buhari Way, Kaduna on Thursday, the usually busy supermarket was shut with no customers or staff in sight, and only a few security personnel were observed at the premises. The closure of this branch appears to be part of a broader downscaling of operations by the ShopRite supermarket chain in Nigeria rather than a sudden, isolated incident. Warri still opens but in distress Report indicates that Shoprite still opens in Warri but showing signs of distress. The shop located around the popular Effurun roundabout, Uvwie Local Government Area, Delta State, where a major road reconstruction project is underway, is like a shadow of its former self. You can count vehicles parked in the premises since the place started winding up last year. The ancillary stores in the sprawling building are what is keeping the place relatively busy. There are eateries, electronics, phones, furniture, pharmacy stores within the mall. Interestingly, some supermarkets suddenly sprang up close to the ShopRite building. It is not clear if the owners took advantage of the crisis around the chain store. However, operators of some of the stores in the building complained of poor sales. “People come here mainly because of the ShopRite supermarket. They offer a wide range of items we don’t sell in the stores inside the complex. With what has happened to the ShopRite it has also affected business for almost all the stores in the premises,” a vendor said.