Kehinde

This is long, but it will open your eyes. What I'm about to share is what no one else will tell you. If you can digest this, it will sharpen your mind and change how you view business forever. I figured out why ShopRite collapsed in Nigeria. I am not here to lazily blame bad governance. Because no matter how tough the economy is, businesses survive as long as customers are buying. ShopRite is packing up today for one simple reason: Customers stopped coming. Patronage dropped, and it dropped badly, so sales dried up. If you are tempted to argue... Please stop. And ask me to shed more light. I found 3 reasons why sales dried up: 1. Location It is a fact that people have to drive miles to go to Shoprite. ShopRite’s business requires a massive land, which is not readily available in many residential areas. That's why they are located where you see them today. Meaning you have to really get prepared, make a trip, burn fuel, to visit. In the early days, this was not a problem. They were giants. Few competitors, no alternatives. So, people would gladly go all the way just to shop there. No... You can’t just breeze in and breeze out. . . Folow me, everything will make sense soon. 2. Competition (you must have read this part yesterday). Still read it, cos I added a few things. 5 to 10 years ago, Shoprite Nigeria stood firmly in an oligopolistic competition space. Meaning it's one of the few big players in the retail space. Shoprite, Spar, and co. were the visible giants. They had enough market power to influence and shape consumer behavior. Which is why people can go all the way to their locations. For many Nigerians, grocery shopping meant going to Shoprite. They dictated product variety, pricing models, and even mall culture. While they looked big, they were sitting in a country where fragmented competition (open markets, local supermarkets, neighborhood shops) dominated 80%+ of daily retail. Look around today... Drive 3 to 5 minutes in any city and you’ll find a big retail store. In some cases, two giants are literally facing each other, or standing next to each other. The retail space has exploded and fragmented even more. The market has been seriously fragmented. And now, customers are enjoying the same comfort Shoprite once bragged about, even with cheaper prices, closer access, and more personal recognition from these smaller players. 3. Lack of foresight Lack of foresight finished them. Do you know that there's no difference between a customer who has been patronizing ShopRite for over 10 years and someone who started patronizing them, just today? Do you know there's no difference between a customer who bought 10m worth of goods and one who just bought a bottle of Coca-Cola of NGN 500? No customer has a brag right in Shoprite. Everyone is treated equally. No emotional bond with their customers. And no move towards ensuring that their customers become loyal. Remember I said location is a problem? It will make more sense here. The competition didn't meet them suddenly. It was a gradual thing, which showed on their dashboard. But they ignored the warning signs. Patronage didn't drop so sharply… It was gradual. If you are connecting the dots, by now you should realize two things: - That their competitors (malls, big supermarkets, and neighbohhood stores) moved closer to customers by locating their businesses in the heart of residential areas of not more than 3 3-minute drive. -That location is indeed a problem. And remember… Nigeria as a whole has tilted toward a conservative economy. People are watching fuel, and every naira they spend. Nobody wants to drive miles to a store that does not even know their name. How can a giant establishment like ShopRite not have an app to enable people to shop from the comfort of their homes? How could a huge establishment like Shoprite not prioritize programs to make thier customers more valued? In 2025 ShopRite still does not have a serious app. No proper e-commerce system. No strong logistics to bring ShopRite to the home. In case you are thinking, How does this add up? Then I will clear you even further. By owning an app, they have successfully taken Shoprite to everyone's homes. COVID-19 gave them the perfect chance to reinvent. But they blew it. This app will help conquer the location problem I mentioned, with a strong logistics arm. Deep Sigh! So to me, they failed because they were blind. They refused to adapt. They refused to value customers. They refused to evolve when the market shifted. In business, size means nothing without foresight. If you ever build something, never forget this: Customers do not stay loyal to giants. They stay loyal to those who see them. And if you have been following my page, you will agree that I have always spoken about these things.