Nigeria’s retail landscape is undergoing a major shake-up as South African retail giant Shoprite shuts down its outlets in Lagos and Ilorin, deepening concerns about the country’s struggling consumer market.

A Lagos Eye News correspondent who visited the outlets observed near-empty shelves. In Ilorin, only sachet salt and table water were available, while the Lagos outlet stocked just drinks, snacks, and bottled water.

This closure follows Shoprite’s earlier exit from Novare Central Mall in Abuja in June 2024 and from Ado Bayero Mall in Kano in December 2023, both citing economic decline and an unfriendly business environment.

Industry analysts point to high operating costs, unstable foreign exchange, import duties, dollar-denominated rents, and weak consumer purchasing power as major factors. Despite sourcing over 80% of its products locally and employing more than 2,000 Nigerians, Shoprite struggled to remain profitable.

The brand’s Nigerian journey began in 2005 with one store in Lagos, eventually expanding to 25 stores across 11 cities by 2020. Its strategy of anchoring malls and offering affordable goods worked initially, but rising inflation, supply chain bottlenecks, and a shrinking middle class eroded its advantage.

While Shoprite’s departure signals another foreign investor’s retreat from Nigeria, it also creates opportunities for indigenous retailers and SMEs. Local supermarkets and open markets may capture Shoprite’s displaced customers, especially in Lagos, Ilorin, and other parts of the country.

Nigerian food producers and other indigenous companies can fill the gap, offering cheaper alternatives without the burden of dollar-based rents.

Entrepreneurial startups in e-commerce and retail logistics could gain traction as consumers look for new, accessible outlets.

With the right government support through reduced taxes, lower import duties, and infrastructure investment—local businesses could thrive and scale up to meet demand.

On the flip side, Shoprite’s closure puts over 2,000 jobs at risk across its Nigerian operations. This includes not only store staff but also cleaners, security personnel, suppliers, and logistics companies tied to its supply chain. Service contracts linked to its stores are being terminated, raising fears of rising unemployment in already vulnerable states. Without a clear transition plan, many displaced workers may struggle to find equivalent jobs in a slowing economy.

Some Lagos residents remain optimistic. “The closure of Shoprite is not a barrier to buying the cheapest products. Indigenous outlets are still here, and we are enjoying them,” said Olatunji Akin, a shopper in Lagos.

Others see it as a wake-up call for policymakers. “Tinubu should use Shoprite’s exit to support local businesses. With our population, local entrepreneurs can do well if the government reduces taxes and duties. Just like the Dangote Refinery, we need more local companies in food, clothing, and retail,” said Gbenga Olorunda.

Shoprite’s retreat from Nigeria mirrors its broader exit from several African markets, including Ghana, Malawi, Kenya, and Uganda, as it consolidates operations back home in South Africa.

For Nigeria, the closures highlight a dual reality. The country remains a tough environment for foreign investment, but also a land of opportunity for resilient local businesses willing to adapt to its unique challenges.