Shoprite announces plans to open neighbourhood stores, shifts away from shopping malls

Shoprite Nigeria has announced plans to open smaller, standalone neighbourhood stores as part of efforts to revive its operations and reduce dependence on large shopping malls.

According to Nairametrics, Adekunle Adebiyi, Executive Director of Investments at MBO Capital Management Limited, disclosed the strategy during an interview on the platform’s Drinks and Mics programme.

Adebiyi revealed that three Shoprite outlets had reopened following temporary closures aimed at resolving financial obligations and negotiating with suppliers.

“We took a very, very drastic decision to just shut everything down whilst we negotiated with suppliers. Now three stores are back open,” he said.

“We’re going to be opening standalone neighbourhood stores, which was always the plan,” he added.

He attributed the retailer’s financial difficulties to foreign exchange volatility, expensive dollar-denominated rents and operational challenges.

About 17 of Shoprite’s 28 stores previously had dollar-based rental agreements, increasing costs following naira depreciation.

The company has yet to announce locations or opening dates for the proposed outlets.