Why Shoprite’s Nigerian expansion slows despite huge sales – Official

Shoprite Retail Outlet

South African retail outlet, Shoprite, has said that expansion in Nigeria will face hurdles in 2017 due to dearth of shopping centres.

Reuters reports that the new Chief Executive, Pieter Engelbrecht, who took the reins from stalwart Basson in January, noted that the retailer would only open two stores in the next fifteen months.

Although sales in Nigeria was 60 per cent higher than a year ago in the six months to the end of December, the firm has scaled back its store openings in Africa’s most populous nation.

“We expected that we would be able to open between 11 and 13 stores in the next 15 months, and now we are down to two,” Mr. Engelbrecht said, citing a dearth of new shopping centres.

But the Shoprite boss still sees long term growth on the continent and said Shoprite is best placed to be the grocer of choice for Africa’s 2.4 billion people by 2050.

“The speed at which it happens, that I don’t know,” he added.

In South Africa, still the largest of the retailer’s 15 African markets, sales grew 14 per cent to 71.3 billion rand ($5.5 billion).

In Nigeria, the retailer operates stores in Lagos, Abuja, Ogun, Kwara and other parts of Nigeria, with the largest being the store in Ibadan, the Oyo State capital.


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  • Domingos

    Imagine how these foreign countries insult Nigerians and rip us off. Even South Africa for that matter. Is it the retail stores business that a serious country should be welcoming at this age and allowing them flood your country with IMPORTED goods? BUT the DUMB officials Imam OLODO has hired are unable to understand the economics of invading a country with retail/grocery stores. It is actually a license to the owners to flood your country with goods from the parent country. Go to Shoprite and inspect the percentage of products sold in their outlets that are made in Nigeria. Perhaps 0%. Juxtapose with goods from South Africa and you will see that up to 85% of their products are from South Africa – Wines, Toothpaste, Tomato Paste, Curry Paste, Butter Paste, Cheese Paste, Beer and even Coco nut oil. To add salt to injury, the so called Federal Minister of Industry or whatever will gladly drive to Shoprite in a convoy and order strictly South African Wines for his party.It has no other name, it is called Mumudity. Nigerians should understand that governance is business. Americans know it and so they chose Trump. But Nigerians chose on the basis of religion and ethnicity. Yeye Fowls!

    • thusspokez

      Imagine how these foreign countries insult Nigerians and rip us off.

      Well, Nigerians deserve the insults if they can’t do anything for themselves.

      Famous Nigerian exports to the West include brooms, sand-mixed melon seeds, palm oil in beer bottle, fufu, to mention but a few.

      Go to Shoprite and inspect the percentage of products sold in their outlets that are made in Nigeria. Perhaps 0%. Juxtapose with goods from South Africa and you will see that up to 85% of their products are from South Africa – Wines, Toothpaste, Tomato Paste, Curry Paste, Butter Paste, Cheese Paste, Beer and even Coco nut oil.

      Indians, Pakistanis, Chinese all do it but not just in Nigeria but even in the West.

    • Karl Imom

      Tell them to GO back to south Africa!! What a heck are they doing in Nigeria when they kill Nigerians doing business in South Africa, and ransack their businesses? They should NOT just slow down but pack and go home and leave Nigerian market for Nigerians and friends of Nigeria.

    • kusanagi

      It sounds like an incentive to create your own shoprite. A Nigerian version whereby you only stock Nigerian made goods.

  • thusspokez

    South African retail outlet, Shoprite

    What do Nigerian looters do with the money they loot? Change it to US dollars and hide it under their mattress.

  • hummm

    Good and lets their expansion continues to dwindle. The store is so overated, and their goods are not even of high quality standard either. They sell a dollar store items for over the top prices and Nigerians think it is good enough for them. We need strictly made in Nigeria goods that we can buy at the supermarkets to help the economy. I already buy strictly items made in Nigeria like fabrics and food so why buy from rip offs like them.???Just saying!!

    • JJ

      U are right. Made in Nigeria goods is the way to go. I still dont understand why we are not exporting products like BATTERY CHARGER. i mean the one in liquefied form usually in a bottle. U find it at Bus stops at dusk, motor parks, road side etc. This is more effective than those pills and has no side effects. All Nigeria need to do is package the product properly.

    • Du Covenant

      While I agree with all you said, when will Nigerian businesses learn to improve on things to provide decent service to fellow Nigerian customers?. You look at the chaos we continue to have called ‘Markets’, look the at the ‘Mess’ we call shops in the 21st century?. Our so called businesses do not believe in investing in their businesses to please the customer is the reason why our citizens patronize anywhere there is some sense of sanity. The Nigerian customer is willing to pay and is desperate for good service but the Nigerian businesses don’t give hood about it, they instead have to be your boss even if you are the one paying. Everything in Nigeria is totally upside down and it is a pity that stores like ‘shoprite’, ‘Walmart’, ‘Tesco’, ‘ASDA’ etc do not flood the landscape and chase out those that have been fleecing their fellow citizens with faked and dangerous goods!.

  • LionHeart

    Why can’t we think of an indigenous shoprite like investment created by Nigerians? This is the reason why South Africans have no respect for us. Our wealthy politicians only know how to store money abroad and do not think of investing in Nigeria.