From Chuckwudi Iwuchuckwu
ShopRite, once a symbol of modern retail culture in Nigeria, is now a shadow of its former self. What began as a thriving South African brand that reshaped shopping habits has, under Nigerian ownership, degenerated into a cautionary tale of mismanagement and decline.
The retailer first exited Nigeria after struggling to repatriate its earnings back to South Africa – the same challenge that forced out global players such as GlaxoSmithKline (GSK). Before leaving, ShopRite sold its Nigerian operations to a consortium led by a local businessman, with an agreement to retain the brand name and equity.
Since that transition, chaos has reigned. Unlike the South African owners, who paid suppliers within 90 days from working capital regardless of sales, the new management introduced a controversial “pay-as-you-sell” model. This policy left suppliers unpaid for months – in some cases, up to a year – if their products failed to sell quickly.
Suppliers, unable to absorb the shock of delayed payments, have withdrawn, resulting in bare shelves across ShopRite outlets. At the same time, the new owners slashed spending on facility maintenance. Once pristine stores now grapple with broken air conditioning, foul odours and dilapidated fittings, driving customers away in droves.
“The South Africans may have left, but at least they ran ShopRite like a business. What we have now is a disaster,” a supplier lamented.
The effect on ShopRite’s bottom line has been catastrophic. With dwindling supplies, neglected infrastructure, and falling foot traffic, many outlets have shut their doors, while those still open struggle to attract customers.
Today, ShopRite stands as a sobering reminder of what happens when short-sighted management meets Nigeria’s culture of “anyhowness”. Once a retail powerhouse, the chain has become a poster child for how not to run a business.
ShopRite is not just fading – it is dying. And its ruin, insiders say, is entirely self-inflicted.
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