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The company that runs the Shoprite franchise in Nigeria, Retail Supermarkets Nigeria Limited (RSNL), has reiterated its intention to stay in the nation in spite of recent worries over the decline of stores in some areas.
To adjust to Nigeria’s current economic realities, the company is going through a thorough “business model reset,” according to a statement issued on Friday.
The previous business strategy, which was carried over from the company’s takeover, was mostly dependent on imports, big store formats, and expensive overhead. The current economic conditions in Nigeria, which include volatile exchange rates, growing inflation, and limited liquidity, make this approach unworkable, the statement said.
With 80% of its products now sourced in Nigeria, the company stated that their reset strategy is based on bolstering local supply networks and decreasing dependency on imports.
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With more than 80% of products now sourced in Nigeria, the statement said, “this reset is built on several key pillars: local supply chains.”
It went on to say that the adjustments should stabilize business processes and reposition the brand for sustained development.
RSNL’s Chief Strategy Officer, Bunmi Adeleye, emphasized that the company was rebuilding with new investors’ help.
Although it has been a difficult time, this is a reset rather than a collapse. Nigeria did not respond well to the previous model. We are revamping Shoprite with the support of new investors to make it more robust, more affordable, more local, and culturally relevant.
“To serve Nigerian customers better than ever before, we are returning bigger and stronger,” she declared.
