By Omodele Adigun
Retail Supermarkets Nigeria Limited (RSN), the Operator of the Shoprite franchise in Nigeria, has denied media reports that it is leaving the country.
The company made the denial in a statement on Friday against the backdrop of reports of poor sales in the country.
There were reports that the company was planning to closing some of its retail outlets in parts of the country due to poor sales.
The company, however, confirmed that it is undergoing a turnaround programme backed by new investors to adapt to Nigeria’s economic realities which included exchange rate volatility, rising inflation and liquidity constraints.
It described the new progrmme as part of efforts to change its business model to stabilise operations and adapt to prevailing economic realities.
The company said it would henceforth focus on smaller, more efficient store formats, stronger local supply chains with over 80 percent of products sourced in Nigeria, and private-label affordability options against the old model of operating large-format stores with heavy reliance on imports and high overhead costs.
It said the new strategy would also include better liquidity management and efficiency improvements such as energy optimisation and cost savings across stores.
The statement quoted Bunmi Adeleye, its Chief Strategy Officer, as saying: “Yes, it has been a tough period, but this is not a collapse; it is a reset. The old model did not work for Nigeria.
“With new investors behind us, we are rebuilding Shoprite to be more local, culturally relevant, more affordable and resilient.
“We are coming back bigger and stronger to serve Nigerian customers better than ever before.”
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