Shoprite Nigeria is set to open standalone stores in residential neighbourhoods as part of a recovery strategy following financial difficulties that forced the retailer to restructure its business.
Executive Director of Investments at MBO Capital Management Limited, Adekunle Adebiyi who is an investor in Shoprite Nigeria, disclosed the plan during an interview on Friday. He discussed the supermarket chain’s financial challenges and the steps being taken to stabilise and expand its operations.
According to Adebiyi, the company temporarily shut down its outlets to negotiate with suppliers and settle outstanding financial obligations. Three stores have since reopened.
“We took a very, very drastic decision to just shut everything down whilst we negotiated with suppliers. Now three stores are back open,” he said.
Adebiyi explained that the retailer intends to grow through smaller standalone outlets located in residential areas rather than depending mainly on large shopping malls.
“We’re going to be opening standalone neighbourhood stores, which was always the plan,” he said.
The strategy is expected to allow Shoprite Nigeria to focus its resources on supermarket operations instead of committing substantial capital to property development.
