Shoprite Nigeria has reassured its customers that it is not shutting down operations in the country. The retailer, which operates under Retail Supermarkets Nigeria Limited, stated that it is committed to continuing its business in Nigeria. This clarification comes after speculation about the company’s future in the country.

The company, now backed by new investors, is undergoing a comprehensive reset of its business model to align with the current economic realities in Nigeria. The previous model, which relied heavily on large store formats, imports, and high overheads, is no longer viable due to exchange rate volatility, rising inflation, and constrained liquidity.

The new business model aims to reduce dependence on imported products, with over 80% of its products now sourced locally. This strategic move is expected to stabilize operations and position the business for long-term growth. By focusing on local supply chains, Shoprite Nigeria hopes to mitigate the impacts of economic uncertainty and build a more sustainable business.

According to Bunmi Adeleye, the company’s Chief Strategy Officer, the current process is a rebuilding phase, with a focus on becoming more local in its business outlook. This shift towards local sourcing is expected to benefit both the company and the local economy.

Shoprite Nigeria’s commitment to continuing operations in the country is a positive development, given the current economic climate. The company’s decision to adapt its business model to the local market is a strategic move that could help it navigate the challenges posed by Nigeria’s economic realities. As the company moves forward with its new business model, it will be important to monitor its progress and assess the impact on its operations and the local economy.