By Ghazali Ibrahim
Shoprite Nigeria is planning to expand through smaller neighbourhood supermarkets as the retail chain steps up efforts to revive its operations following financial difficulties and the closure of some outlets.
Adekunle Adebiyi, Executive Director of Investments at MBO Capital Management Limited, an investor in Shoprite Nigeria, disclosed the plan during an interview on Nairametrics’ Drinks and Mics, according to reports published on October 24, 2026.
Adebiyi said three Shoprite stores had reopened after the company temporarily shut its operations to negotiate with suppliers and address outstanding financial obligations.
“We took a very, very drastic decision to just shut everything down whilst we negotiated with suppliers. Now three stores are back open,” he said.
He explained that the company intended to open standalone neighbourhood stores instead of relying mainly on large outlets located in shopping malls.
“We’re going to be opening standalone neighbourhood stores, which was always the plan,” Adebiyi said.
The proposed strategy is expected to reduce the cost of operating large retail outlets and allow the company to focus its investments on supermarket operations rather than property development.
Adebiyi identified foreign exchange volatility as one of the major challenges facing the business, explaining that about 17 of its 28 stores had rental agreements denominated in US dollars at the time of the acquisition.
The depreciation of the naira subsequently increased rental costs and placed additional pressure on the company’s finances.
He also cited inventory management problems and the cost of replacing the enterprise resource planning system previously used through its former parent company as factors that affected operations.
The system replacement reportedly required billions of naira in additional investment.
Shoprite Holdings, the South African retail group that introduced the supermarket chain to Nigeria, transferred its Nigerian operations to local investors in 2021 through a franchise arrangement.
The Nigerian business has since faced operational challenges, including rising costs, store closures and difficulties maintaining its operations.
In March 2026, Shoprite Nigeria said it was implementing a phased restructuring programme rather than exiting the country. The company also disclosed plans to reopen outlets at The Palms Shopping Mall and Circle Mall in Lagos.
However, the latest neighbourhood-store expansion plan comes without a confirmed opening schedule.
The company has yet to disclose the number of new outlets it intends to establish, their locations or when the proposed stores will begin operations.
The planned expansion represents another attempt by the retailer to rebuild its presence in Nigeria’s competitive supermarket market.
