₦airaland Forum

Nigeria’s N2.5trn Mall Economy Takes Hit as Shoprite Completes Shut-Down

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.

“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.

‘‘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.

Source

Tinubu’s family, friends, staff, party governors and elected officials, campaign organizers, advisers and so on — are all doing very well.

But over 90% of Nigerians are poorer. Over 100 million Nigerians already facing multidimensional poverty.

The mall itself or ShopRite alone? Though not a good news

Emilokun Effects everywhere you go. Amoda Ogunlere, you're doing well. Continue.

Interesting times for businesses

Yet another dividends of the "bold reforms".

The Nigerian operators laundered money with it. Take it to the bank

Why? Nigeria's foreign reserves have risen more than ever under PBAT.
Meaning that Nigeria is economically buoyant under PBAT. ---- APC mouthpiece.

Anything the certificate forger and accounting first class heroin sniffer touches, dies naturally.

AMINDA:
Yet another dividends of the "bold reforms".

+
Absolutely. When you instantly pauperize tens of millions and strip them of buying power, what do you expect.

This regime collapses everything

The purchasing power is severely low.

Is there a management issue or Divestment or what ?
Because I see Foodco, Justrite and other malls opening every other day.

What exactly is the issue with ShopRite

The country is still striving well in the area of security and economy, according to Reno Omokry and the rest of anywhere Belle face politicians, and these companies are leaving the country

Tinubu's regime is doing fantastically well.

We will ensure he is reelected, Nigerians are richer, money from the new tax reforms will be in our pockets very soon.

We will have enough money to loot and fly our girlfriends to Dubai for shopping, sex and holidays while we give them foot massage in our private jets.

We will continue to ensure Nigerians remain rich to be able to fund our luxurious and extravagant lifestyle.

~ AKA concerned Nigerian.
Nigerians please keep sleeping!

APC brought more hardship and poverty... the only thing the evil party has achieved.

This is quite sad and very unfortunate.
The government of the APC since inception in 2015 till date has done more harm than good to the Nigerian nation and its economy.
As terrible as they're in virtually all ramifications of performance ratings, the pointers indicates nothing but a total state capture towards the 2027 general elections.
And the hypnotization of majority of the impoverished populace who seem to have totally surrendered their future and dignity for nothing but a plate of porridge is quite unbelievable going by the way they still sing the praises of their tormentors.
Stockholm Syndrome is quite real in Nigeria 🇳🇬.

LibertyRep:
Is there a management issue or Divestment or what ?
Because I see Foodco, Justrite and other malls opening every other day.

What exactly is the issue with ShopRite

I think the local operators who took over the franchise lacked capacity to manage it

Omo the thing still dy surprise me o. I never knew ShopRite is dead gone until I went to the one at Asaba, na empty shelves I meet (tho the rented stores are still active as of then, don't know about now)

SouthSouth1914:
The Nigerian operators laundered money with it. Take it to the bank

If this were truly the case they would not allow the business collapse

Finally, hope we all remember that Shop rite shops and other retail stores outlets have been closing down gradually since time of GEJ.... Only got worsens during Buhari and finally collapsed during BAT...... Some foreign companies too packed up and left during GEJ, many during Buhari and lots during BAT...... Nigeria government needs to do better than continuously looking for Direct Foreign Investments abroad, wasting resources in Billions of dollars.... What have you done to secure the already DFI in your country?

givedemwotowoto:
Nigeria’s N2.5trn Mall Economy Takes Hit as Shoprite Completes Shut-Down



Source

All thanks to APC failed leadership

I can't believe this but then, we have Jendol, Jara, Justrite, GB, etc. So no Shoprite, no problem...

Bokku, jandol and shop rite taking the market to the common man, especially Bokku.

Shop rite just wanted to remain in Alausa where only the rich and middle class can go, since APC government took over, the number of rich and middle class people reduce and most of them couldn't afford to go to Alausa again.

Jandol and shop rite price was fair and then came Bokku,now we don't really need shop rite again.
I can count the number of times have been to shop rite, probably not up to 4 times.

givedemwotowoto:
Tinubu’s family, friends, staff, party governors and elected officials, campaign organizers, advisers and so on — are all doing very well.

But over 90% of Nigerians are poorer. Over 100 million Nigerians already facing multidimensional poverty.

Keep quite,what has tinubu got to do with this.......shop rite failed to evolve and adjust to current realities.......smaller retail chains are growing rapidly where shop rite has failed and there are more retail outlets bludgeoning value in the retail space......everything tinubu depicts you as an ignorant,unintelligent fellow who doesn't even understand basics.

DeepSight:
+
Absolutely. When you instantly pauperize tens of millions and strip them of buying power, what do you expect.

This is a post from the coven of opposition agents who seek nothing but to attack tinubu no matter how ridiculous they sound........why is spar which has existed before shop rite growing, we have so many Nigerian retail chains doing very well,us it foreign customers or ghosts that are growing them?

We know where this is coming from and it's an infantile attempt to try to bring down tinubu......PBAT till 31!!

It's Tayọ Amusan, not Tobi Amusan.

In my opinion, I don't think ShopRite broke even at all with the rate of expansion back then. Nigerians only went to these stores on Sundays to buy a few snacks but snap plenty pictures.

The Tinubulation put the final nail in their coffin with low consumer purchasing power and exponential operating costs.

Little surprise.

JasonNOTStatham:
The mall itself or ShopRite alone? Though not a good news

no be Shoprite dey rent most of the mall space. Na Shoprite dey drag people to the mall...A State like Rivers state doesnt need Shoprite anymore. Have several big supermarkets scattered across port Harcout.

Kobicove:
If this were truly the case they would not allow the business collapse

dey play. U don't know that people that launder money don't care about the outcome. Ur politicians as a case of study.

Bigger retail outlets like SPAR go de happy now o lol ...infact they should buy all those ShopRite stores

LibertyRep:
Is there a management issue or Divestment or what ?
Because I see Foodco, Justrite and other malls opening every other day.

What exactly is the issue with ShopRite

Don't mind these propagandist....shop rite simply failed to evolve and adjust to current realities......smaller retail chains are growing exponentially due to one major reason which is accessibility, tge nearest shop rite to where i live would be about 5km,thats a lot of intense driving within the city but I have jendol,just rite,and so many others along my route, why then do I have to go to shop rite just because I want to get groceries.