Notwithstanding recent worries about the shrinking number of stores in certain states, Nigeria’s Shoprite franchise operator, Retail Supermarkets Nigeria Limited (RSNL), has confirmed its intention to stay in the nation.
The company clarified in a statement issued on Friday that it is going through a thorough “business model reset” in order to adjust to the present economic conditions in Nigeria.
Large store formats, imports, and expensive overheads were key components of the previous business model, which was carried over when the company was acquired. Given Nigeria’s current economic situation, which includes volatile exchange rates, growing inflation, and limited liquidity, this approach is no longer feasible, the statement said.
According to the corporation, 80% of its products are currently sourced in Nigeria, and their reset strategy is based on bolstering local supply networks and lowering dependency on imports.
“Local supply chains, with over 80% of products now sourced in Nigeria, are one of the key pillars upon which this reset is built,” the statement read.
It went on to say that the modifications are anticipated to stabilize business processes and realign the brand for sustained expansion.
Bunmi Adeleye, RSNL’s chief strategy officer, emphasized that the business was rebuilding with the help of new investors.
“Yes, it has been a difficult time, but this is a reset, not a collapse. Nigeria did not benefit from the previous model. We are renovating Shoprite to be more resilient, more inexpensive, more culturally relevant, and more localized with the support of new investors.
She declared, “To better serve Nigerian customers than ever before, we are returning bigger and stronger.”
