Giant retailer, Shoprite, appears to be in dire straits as it shut down its operations in Ibadan, Oyo State, and Ilorin, Kwara State.
It would be recalled that Shoprite’s South African owners pulled out roughly four years ago.
Daily Trust’s investigations show that the giant retailer’s once-bubbling outlets in Ilorin and Ibadan have been shut to the public.
The newspaper reports that in other locations where the retailer is still operating, the shelves are running dry of stock.
The publication further reported that the once vibrant outlet of the retailer at the Ikeja City Mall has lost its verve and now parades scanty aisles and sparsely filled racks.
A worker at the outlet explained that the new management was still renegotiating with suppliers, which had stalled restocking.
The source expressed the hope that things would return to normal after a deal is struck.
Other workers expressed fears that the negotiations had lasted for months, creating apprehension among staff members about the security of their jobs.
The situation is pretty much the same at the Jabi Lake Mall outlet of the brand.
Workers complained that they had not had fresh supplies in two months. They expressed fear that the end might be near.
Shoprite recorded swift success when it entered Nigeria in 2005, branching out rapidly into many cities.
However, the story has changed since a string of economic policies negatively impacted many families and businesses.
In the last few years, the cost of living has shot up, with inflation hitting the roof. Skyrocketing operating costs, including astronomical rents, forex issues, and stiff competition, have combined to deal a heavy blow to the brand.
In Kano, where it shut down recently, for instance, the rent alone at the Ado Bayero Mall, where the outlet was located, the rent was reportedly ₦66 million monthly. This was said to be outside the cost of electricity and labour.
Shoprite, however, insists all is well, adding that the shelves will be restocked by the end of September.
