ShopRite Closures in Ibadan: Staff, Suppliers, Businesses Count Losses

The shutdown of two outlets of South African retail chain Shoprite in Ibadan, Oyo State, has triggered job losses, disrupted supply chains and reduced commercial activity in parts of the city.

Findings revealed that the stores located at Ring Road and opposite the Central Bank of Nigeria in Dugbe ceased operations late last year after months of operating on skeletal services.

The retail giant, which had operated in Nigeria for years as one of the country’s prominent foreign retail investors, gradually scaled down activities before eventually closing the Ibadan branches.

Operations Wound Down Before Closure

Prior to the shutdown, both outlets had reduced staff strength and limited services. Shelves were sparsely stocked, while customer traffic declined significantly.

Sources familiar with the development attributed the decision to a combination of economic headwinds, rising operating costs, insecurity concerns and alleged internal irregularities.

In a bid to stay afloat at the time, the stores reportedly introduced wholesale-style pricing, offering goods at discounted rates to attract customers amid rising inflation and declining purchasing power. The measures, however, failed to sustain operations.

The retail spaces, once major commercial hubs within their respective malls, now remain largely inactive, with business owners in surrounding areas reporting a noticeable drop in foot traffic.

Employees Affected

The closures resulted in the layoff of dozens of workers, including cashiers, supervisors, cleaners and security personnel.

A former supervisor at the Ring Road outlet, Mrs. Adebayo, said the signs of trouble became evident months before the final announcement.

“We were first placed on skeletal duties. Only a few of us worked per shift. Eventually, we were informed that the store would close permanently. Many of us depended solely on this job to support our families,” she said.

Another former employee at the Dugbe branch, Mr. Oladimeji, described the closure as abrupt.

“There were rumours of fraud investigations before the closure, but most of us were not involved in anything of that nature. The economic situation was already affecting sales. When the closure came, it was sudden and painful,” he said.

While some staff members reportedly received entitlements, others said severance packages were limited and insufficient to cushion the impact of job loss.

Suppliers Face Disruptions

Local suppliers and distributors have also felt the impact. Before its exit, Shoprite served as a major bulk buyer of food items, beverages, household goods and locally manufactured products.

A food supplier, who requested anonymity, said the closure disrupted established supply arrangements.

“ShopRite used to buy in large quantities and paid within agreed terms. Since their exit, we have had to look for smaller retailers, and it has affected our turnover,” the supplier said.

Some producers have reportedly scaled down operations or sought alternative markets following the loss of the retail chain as a major outlet.

Ripple Effect on Mall Businesses

As an anchor tenant, Shoprite attracted significant customer traffic that benefited smaller businesses, including boutiques, pharmacies, eateries and cinemas operating within the same complexes.

A shop owner at the Ring Road mall said business had slowed considerably.

“When ShopRite was functioning fully, customers would come to shop and then visit other stores. Since they left, foot traffic has reduced drastically,” the shop owner said.

Traders in Dugbe also reported declining sales, with some considering relocation due to reduced patronage.

Broader Economic Concerns

Analysts say the closure reflects broader economic pressures facing large-scale retailers in Nigeria, including exchange rate volatility, high operational costs, regulatory uncertainties and security challenges.

For residents of Ibadan, the shutdown represents not only the loss of a major retail outlet but also shrinking formal employment opportunities and reduced access to competitively priced goods.

The development has left a visible gap in the city’s retail landscape, with staff, suppliers and neighbouring businesses continuing to count the cost.