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 bare 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 a departure 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 currency rates, growing inflation, and liquidity issues.
RSNL said that its previous large-format retail operating model, which was highly dependent on imports and had significant overhead expenses, was no longer viable.
It stated that the reset will prioritize more affordable private-label alternatives, stronger local supply chains with more than 80% of items originating in Nigeria, and smaller, more efficient shop designs.
Better liquidity management and efficiency enhancements, including energy optimization and cost reductions across stores, will also be part of the plan, it was said.
"Yes, it has been a difficult time, but this is not a collapse; it is a reset," said Bunmi Cynthia Adeleye, Chief Strategy Officer of Retail Supermarkets Nigeria Limited, according to the release. Nigeria did not benefit from the previous model.
"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 firm emphasized that it is still dedicated to Nigeria and would keep serving its millions of clients and suppliers.