Nigeria’s mall economy, estimated at about ₦2.5 trillion, has suffered a major setback following the final shutdown of the supermarket chain Shoprite across the country after two decades of operations.
Industry analysts estimate that roughly ₦1.4 trillion in economic activity may have been affected as the retail giant’s closure ripples through the supply chains and businesses that depended on its presence.
The development has impacted thousands of direct employees, suppliers, and hundreds of thousands of households linked to the supermarket’s operations. For years, Shoprite served as a major bulk buyer of food items, beverages, household goods and locally manufactured products, providing a steady market for suppliers.
Its closure has also hit other businesses within the same mall complexes. As an anchor tenant, Shoprite attracted large crowds, boosting customer traffic for nearby boutiques, restaurants, pharmacies, cinemas and other small outlets.
From retail powerhouse to empty shelves
Shoprite entered the Nigerian market in 2005 and quickly reshaped the country’s grocery shopping culture. The retail brand expanded to about 25 outlets across 13 states as Nigerian consumers embraced the modern supermarket experience.
However, the business began facing mounting challenges following the COVID-19 pandemic. Border restrictions, foreign exchange shortages, higher import tariffs and increasing logistics costs placed heavy pressure on operations.
In 2021, South Africa’s Shoprite Holdings Limited sold its Nigerian operations to Ketron Investment Limited, a consortium linked to Persianas Investment Limited, owners of The Palms shopping mall chain.
The new owners continued to operate the brand under a franchise arrangement while receiving administrative and technical support from the South African parent company. Initial assurances helped calm public concern, and the stores briefly regained momentum during festive seasons when vouchers and promotional sales attracted shoppers.
Gradual shutdown begins
By 2024, however, customers in several locations began noticing persistent shortages on store shelves. Basic household items such as tissue paper and food staples became scarce, leaving many outlets stocked with only limited products like wine, detergents and toys.
By late 2025, multiple branches in Lagos and other cities had closed completely. Visits to several former outlets now show deserted premises where bustling supermarkets once drove mall activity.
‘Reset, not exit’
Despite the widespread closures, management of Retail Supermarkets Nigeria Limited (RSNL), which operates the brand locally, insists the move does not represent a permanent exit from Nigeria.
Chief Strategy Officer Bunmi Cynthia Adeleye said the company is undergoing a “comprehensive business model reset” aimed at ensuring long-term sustainability amid economic challenges.
However, many businesses affected by the shutdown say the timeline for any possible return remains uncertain.
Ripple effects across cities
The closure has produced significant economic consequences in several states.
In Kano, the branch located at Ado Bayero Mall shut down in January 2024 after management cited financial pressures and the prevailing business climate. Since then, activity within the mall has dropped significantly, with many shops operating only partially.
In Lagos, closures at locations such as Apapa and Lekki sharply reduced customer traffic for neighbouring retailers. Business owners report drastic declines in sales since the supermarket stopped operating.
Some vendors said they previously generated over ₦2.5 million in weekly sales but now struggle to reach ₦1 million.
Workers and small businesses struggle
Former employees across the country have been forced to seek alternative sources of income following the shutdown.
In Akure, Ondo State, a former store attendant said she had to start a small POS business to survive after losing her job. Others reported similar struggles as they search for new employment.
Suppliers have also been affected. Local distributors who relied on Shoprite for bulk purchases say they now face reduced demand and unsold stock.
Ibadan, Abuja malls feel the impact
In Ibadan, former outlets at Dugbe and Ring Road now stand largely inactive. Customer traffic within the surrounding malls has dropped, affecting neighbouring businesses that once benefited from the supermarket’s presence.
In Abuja, malls such as Silverbird and Novare Central have also recorded reduced foot traffic since the brand’s departure. Mall operators say efforts are underway to attract new anchor tenants to restore activity.
Some outlets are expected to be replaced by rival supermarket chains, raising cautious optimism among tenants that customer traffic may eventually return.
Uncertain future
For many vendors and workers whose livelihoods depended on the retail chain, the shutdown represents more than the loss of a supermarket—it signals a broader disruption to Nigeria’s retail ecosystem.
Until a new operator fully replaces the brand or the company returns under its planned restructuring, the closure continues to weigh heavily on consumer confidence and the thousands of small businesses that once thrived alongside it.
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