Why is Shoprite Closing Down? Full Gist Behind Empty Shelves

Shoprite, Africa’s retail giant, is shuttering stores across Nigeria, leaving empty shelves and anxious communities in cities like Ilorin, Ibadan, Lagos, and Abuja. The South African-based chain, under Shoprite Holdings, first signaled its Nigerian exit in August 2020, citing unsustainable losses, and has since accelerated its retreat from Nigeria and other African markets like Ghana and Malawi. Social media platforms are filled with images of bare aisles and debates pinning the closures on Nigeria’s economic woes versus corporate missteps. While Shoprite thrives in South Africa with over 2,000 stores, its international pullback reveals a strategic pivot amid mounting challenges.

The 2020 announcement to exit Nigeria came after years of struggles, culminating in the 2024 sale of Shoprite’s majority stake in Retail Supermarkets Nigeria Limited (RSNL) to local partners. Nigeria’s economic headwinds—naira devaluation, rampant inflation, and negative household consumption growth since 2022—crushed profitability. High costs for imported goods and self-generated power, coupled with competition from local chains like Spar and informal markets, overwhelmed Shoprite’s model.

Shoprite’s retreat extends beyond Nigeria. In August 2025, the company announced the sale of five Malawi stores to Karson Investment Trust (pending October approval) and seven Ghana stores plus a warehouse, deemed “non-viable.” This follows earlier exits from Uganda and Kenya, part of a decade-long shift to focus on South Africa, where 80% of revenue is generated. Shoprite’s 2025 year-end results, released September 2, reported over 20% earnings growth, fueled by South African strength and new ventures like pet stores. However, currency shortages, political instability, and regulatory hurdles, like Malawi’s approval delays, have made international operations untenable.

The human toll is significant, particularly in Nigeria, where workers face joblessness in an already strained economy. Some media posts capture the despair: “Families sinking deeper into poverty amid Tinubu’s taxes.” Some attribute closures to Nigeria’s governance, others to Shoprite’s failure to adapt to local dynamics. Meanwhile, Shoprite’s South African operations flourish, with new store formats and hiring drives, like stock replenisher roles closing September 22. This contrast highlights a deliberate strategy: pruning unprofitable markets to bolster the core, a move that began with the 2020 Nigeria exit plan but only now fully materializes.

The Shoprite saga reflects global retail challenges in volatile markets. Confusion with the unrelated U.S.-based ShopRite, which closed five New York stores in 2024 but opened others, adds to the narrative’s complexity. In Nigeria, empty shelves symbolize broader economic struggles, fueling netizens’ debates over policy versus corporate errors.

As Shoprite exits, local competitors may rise, but immediate impacts—job losses and reduced access to affordable goods—hit hard. The 2020 decision set the stage, but Nigeria’s economic realities and Shoprite’s strategic refocus have now sealed the fate of its African ambitions outside South Africa.