RETAIL Supermarkets Nigeria Limited, operator of the Shoprite franchise in the country, has dismissed recent reports suggesting it was leaving Nigeria.
The company, in a statement on Friday, September 19, while reacting to reports of empty shelves and temporary closures at some outlets, explained that the current development was not an exit move, but rather part of a “reset” of its business model aimed at stabilising operations and adapting to prevailing economic realities.
It said it was undergoing a turnaround programme backed by new investors to adapt to Nigeria’s economic realities, including exchange rate volatility, rising inflation and liquidity constraints, noting that its old model of operating large-format stores with heavy reliance on imports and high overhead costs was no longer sustainable.
According to the company, the reset would focus on smaller, more efficient store formats, stronger local supply chains with over 80 per cent of products sourced in Nigeria and private-label affordability options, adding that the strategy would also include better liquidity management and efficiency improvements such as energy optimisation and cost savings across stores.
The statement quoted the Chief Strategy Officer (CSO) at RSNL, Bunmi Cynthia Adeleye, as saying: “Yes, it has been a tough period, but this is not a collapse; it is a reset. The old model did not work for Nigeria.
“With new investors behind us, we are rebuilding Shoprite to be more local, culturally relevant, more affordable and more resilient.
“We are coming back bigger and stronger to serve Nigerian customers better than ever before.”
RSNL stressed that it remained committed to Nigeria and would continue to serve its millions of customers and suppliers as part of its long-term growth plan.
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