The company that runs the Shoprite franchise in Nigeria, Retail Supermarkets Nigeria Limited, has denied rumors that it is about to leave the country.
In response to recent allegations of empty shelves and temporary closures at certain stores, the firm released a statement on Friday.
It clarified that the present development was a “reset” of its business model meant to stabilize operations and adjust to the current economic reality, rather than an exit strategy.
It claimed to be going through a turnaround program supported by fresh investors in order to adjust to the economic realities of Nigeria, such as fluctuating exchange rates, growing inflation, and liquidity issues.
RSNL claimed that its previous large-format retail operating model, which was highly dependent on imports and had high overhead costs, was no longer viable.
It stated that the reset would prioritize more affordable private-label alternatives, stronger local supply chains with more than 80% of products originating in Nigeria, and smaller, more efficient shop designs.
Better liquidity management and efficiency enhancements like energy optimization and cost savings across stores would also be part of the plan, it was added.
The statement quoted the Chief Strategy Officer at Retail Supermarkets Nigeria Limited, Bunmi Cynthia Adeleye, as saying, “Yes, it has been a tough period, but this is not a collapse; it is a reset. The old approach did not function for Nigeria.
“We are restructuring Shoprite to be more robust, more economical, more culturally relevant, and more localized with the support of new investors. We are returning stronger and more determined than ever to provide Nigerian consumers with the best possible service.
As part of its long-term growth strategy, the company emphasized that it is still dedicated to Nigeria and would keep serving its millions of clients and suppliers.
