When Nigerian businessman Tayo Amusan led Ketron Investment Limited’s acquisition of Shoprite Nigeria in 2021, the move was hailed as a commendable step, finally bringing Africa’s biggest supermarket chain under local control.
Four years later, the promise has dimmed. Shoprite is now shutting down outlets across key cities, struggling to survive in a market it once dominated.
Closures in Ilorin and Ibadan
In recent weeks, shoppers in Ilorin and Ibadan were greeted with padlocked entrances and closure notices. Management pinned the shutdowns on circumstances “beyond immediate control.”
A similar fate befell the retailer’s Wuse outlet in Abuja last year, after what it called “a thorough evaluation of the store’s financial situation and the current business climate.”
The economic weight behind the decision
The reasons run deep. Rising inflation, weakened consumer spending, high operating costs, and stiff competition have eroded profitability. In Kano’s Ado Bayero Mall, Nigeria’s first large-scale shopping centre, Shoprite’s branch struggled under the weight of rent and day-to-day expenses.
The financial cracks were visible long before Amusan’s takeover. As far back as mid-2020, Shoprite Nigeria carried $140 million in liabilities against $125 million in assets, leaving its balance sheet underwater. The COVID-era downturn only accelerated the slide, as household incomes shrank and shoppers cut back.
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Amusan’s bigger vision
Amusan, who also runs the Persianas Group, had pitched the acquisition as part of a wider expansion into retail, hospitality, and real estate. The plan promised to re-energise Shoprite Nigeria, making it leaner, more locally attuned, and better placed to withstand international competition.
But recent development shows that scaling modern retail in Nigeria is still a herculean challenge, no matter who owns the brand.
