ShopRite Denies Shutdown Rumours, Confirms New Palms, Circle Mall Stores this Month

Retail chain ShopRite has dismissed rumours that it has shut down operations in Nigeria, confirming plans to open two new stores in Lagos at The Palms Shopping Mall and Circle Mall this March.

In an exclusive conversation with Nairametrics, Bunmi Adeleye, Chief Strategy Officer at Retail Supermarkets Nigeria Limited, the new owners of the ShopRite franchise, said the company is undergoing a restructuring program aimed at strengthening operations rather than exiting the Nigerian market.

The statement followed speculation that the supermarket chain had ceased operations in the country after reports that some of its stores were closed.

According to the company, the planned openings form part of a phased turnaround strategy to optimise store formats and improve operational efficiency.

What they are saying 

Bunmi Adeleye explained that the two new outlets will open in March 2026 as part of a structured turnaround plan that began in August 2025.

• “We have milestone timelines for the turnaround program that we are working with. We set targets for the first 90 days, six months, and 12 months. We are just concluding the six-month milestone and are now moving toward the 12-month milestone.” 
• “The program started in August 2025, when we received approval to begin. We have completed the first 90 days, reached the six-month milestone by February, and are now on the next phase.” 
• “We would be opening later this month of March. The locations of these two new stores are Circle Mall at Jakande and The Palms in Oniru.” 

She also disclosed that the company recently hired a Chief Commercial Officer, adding that the retail chain currently operates about 63 stores across 14 states in Nigeria.

More insights

Adeleye said speculation about a potential shutdown may have been fueled by disgruntled employees or competitors, although no specific instances were identified.

• The company noted that some challenges arose from operating in large shopping malls where rent negotiations became difficult after Nigerian investors became more involved in mall ownership.
• In some cases, rents were denominated in dollars, increasing operating costs significantly and making certain locations unsustainable.
• At one store, rent reportedly accounted for more than half of the outlet’s revenue, prompting the company to exit the location after negotiations failed.

Following those exits, some retail spaces remained vacant, while others were later leased at significantly lower rates.

As part of its restructuring plan, ShopRite is also reviewing store formats and considering smaller neighborhood outlets to reduce expenses related to rent, electricity, and diesel, while aligning with evolving consumer shopping habits.

What you should know

There have been speculations that ShopRite has shut down its Nigerian outlets, largely stemming from reports that some of its stores were seen closed. However, the company says it is restructuring rather than shutting down.

ShopRite first entered Nigeria on December 16, 2005, under its former South African owner, Shoprite Holdings Limited (SHL), with a store at The Palms Shopping Mall in Lagos.

• SHL later exited the Nigerian market, citing challenging operating conditions. Retail Supermarkets Nigeria Limited (RSNL) acquired the franchise and now operates the chain across the country.
• RSNL has continued efforts to restructure ShopRite in Nigeria, including exploring smaller store formats, increasing local sourcing, and reducing reliance on imports.

Despite challenges such as currency fluctuations, inflation, and high operating costs, ShopRite says the phased turnaround program is ongoing, and the new store openings in March 2026 at Circle Mall in Jakande and The Palms in Oniru confirm that it continues to operate across Nigeria.