BUSINESS STRATEGY

Shoprite’s Nigerian franchisee plans to change its business model

By our African Marketing Confederation News Team | 2025

Supermarket group denies any plans to exit the market, but intends adapting to an operating model better suited to tough local conditions.

Retail Supermarkets Nigeria Limited, the company that operates the Shoprite supermarket franchise in the West African country, has moved to reassure the local market that it has no plans to close, but instead intends to reset its operating current model to be more in line with local realities.

Photo: Kampus Productions from Pexels

According to news reports within Nigeria, there have been questions around empty shelves and temporary closures at some outlets.

“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,” The Punch newspaper quotes Bunmi Cynthia Adeleye, Chief Strategy Officer at Retail Supermarkets Nigeria Limited, as saying.

“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.”

Long-term growth plan

According to The Punch, the retailer stressed that it remains committed to Nigeria and would continue to serve its customers and suppliers as part of its long-term growth plan.

The news platform This Day Live says the business model inherited by Retail Supermarkets Nigeria Limited when it acquired the business from Shoprite has relied heavily on large store formats, imports and high overheads.

“But this model, according to the company, is no longer viable in the face of Nigeria’s current economic climate, which include[s] exchange rate volatility, rising inflation and constrained liquidity,” This Day Live reports.

“Other pillars include smaller but more efficient formats that serve both everyday shoppers and bulk buyers; affordability at the core through private labels and value pricing; smarter liquidity management through supplier guarantees, phased payments, and stock clearance; and efficiency improvements, including energy optimisation and cost-saving measures across its stores.”

Shoprite sold its Nigerian business interests in mid-2021 after almost 16 years in the country.

Close-up of two people shaking hands in a business context.

Africa declares a new standard for its communications profession

For too long, the PR landscape has had no shared standard for who practises in it or what responsibility they carry, founders say.

Woman in a plaid jacket waves at a smartphone on a tripod while filming in a bright kitchen with food on the table behind her

Researchers find a new way to enhance social media influencer messaging

By carefully selecting followers to engage with an influencer’s post, marketers can significantly increase the post’s spread.

Beige off-road pickup truck parked on a dirt trail with rocky hills and pine trees in the background

Watchdog instructs auto brand to remove or amend TV ad campaign

SA’s Advertising Regulatory Board finds Kia advertisement could be offensive to people with certain health disorders.

Person wearing blue over-ear headphones at a desk with multiple monitors showing digital graphics, focused on work.

The gap between AI’s efficiency promises and marketing reality

Global study finds AI is helping marketers produce more – but is not creating the time and creative space they expected.

Aerial view of a coastal city with tall skyscrapers, dense low-rise blocks, and a distant shoreline on the horizon.

Number of African megacities to increase from three to 17 by 2050

Urban Africa will double its footprint, adding the equivalent of more than 4,000 Manhattans or almost 400 Singapores, The Economist reports.

Portrait of a smiling older man with gray hair and rectangular glasses wearing a white shirt, facing the camera.

Nigeria’s Hyper City appoints CEO with strong Carrefour background

Luc Demez brings experience from Europe and African countries as the Carrefour brand looks to expand into Nigeria with a local partner.

Smiling woman in a lime green tank top pushes a shopping cart down a grocery store aisle.

Cracking the Africa Code: The functional path to market leadership

What makes brands successful in Africa? A summary of the award-winning paper presented at Esomar’s first conference in Africa.

Cartoon smartphone wearing a chef’s hat, displaying a recipe card with a plate of food and the word RECIPES on an orange background.

‘What’s for dinner tonight, mom?’ Woolies’ AI chef may have the answer

Woolworths supermarket chain embraces an AI-powered chef as it leverages two decades of recipes to answer an age-old family question.

White athletic sneakers resting on a basketball on a dirt path with autumn leaves in the background.

Demand for sportswear is sprinting ahead of the wider apparel market

Consumers are prioritising their wellness despite tighter wallets, meaning sportswear remains one of the most resilient areas of fashion.

A scene from the 2025 AMC Awards in Ghana

Deadline looms for African marketing and supply chain awards

Nominations for the 2026 African Marketing Confederation and African Supply Chain Confederation awards close on 31 July.

Researchers study why negative brand news fails to deter some customers

Consumers may stick with troubled brands because their emotional attachment overrides the perceived risk, study finds.

Jason Lottering