The unanticipated departure of Shoprite from Ghana’s retail landscape may seem like just another business headline or a normal day boardroom decision, which has little bearing on the consumer. If this is your thinking, it is unfortunately not the case.
It is emerging that this exit could have serious consequences for your wallet, your shopping options, and the future of fair market competition.
This was revealed in a brief on the subject copied to The High Street Journal by competition economist, and consumer protection advocate Appiah Kusi Adomako.
The West Africa Regional Director of CUTS International makes a strong case that in an era where supermarkets and shopping malls are fast becoming the go-to retail spaces for urban dwellers, the disappearance of a major player like Shoprite isn’t just about empty shelves; it’s about who fills them, and what that means for the rest of us.
He enumerates at least three reasons why you should care as a consumer;
Less Competition Could Mean Higher Prices
The big question, according to Appiah Adomako, isn’t just why Shoprite is leaving, but who is stepping in.
He reveals that if the new buyer turns out to be a dominant retailer, for instance, Melcom, which has already taken over former GAME store locations, this could sharply reduce competition in Ghana’s modern retail space.
He recalls that when GAME exited in 2022, Melcom replaced them in key malls across Accra, Kumasi, and Takoradi. Should Melcom take over Shoprite, he says that it is more than just expansion, it is market dominance
With fewer big competitors, the market could slide toward a monopoly-like structure, giving one retailer the power to raise prices with little pushback from rivals. And when prices rise at the mall, everyone pays more, from your rice and toiletries to electronics and household goods.
“If Melcom were to acquire Shoprite’s stores, its dominance in the retail space would grow even stronger, reducing competition,” he stressed.
Monopoly Power Could Hurt Innovation and Choice
A single dominant retailer doesn’t just mean higher prices, he says it can also mean less innovation, fewer promotions, and diminished consumer experience.
Without real competition, companies lose the incentive to improve. The much-anticipated promotions dwindle, product variety shrinks, and customer service declines.
If Melcom, or any other large chain, becomes too big to challenge, smaller retail players may be pushed further to the margins, unable to match the pricing and scale of a near-monopoly. And for the average consumer, that means fewer choices and lower service standards over time.
“Without competition, innovation slows down, prices tend to rise, and consumers are left with fewer options,” he noted.
Long-Term Threat to Consumer Welfare
While some may argue that Ghanaians can always fall back on mini-marts, provision shops, and open markets, the competition economist makes an important point that the future of retail is shifting toward malls and modern shopping environments.
He says dominance in this retail segment could have long-lasting effects on consumer welfare and may be difficult to dismantle.
Shoprite’s exit, he says, may be a turning point. If a dominant player captures both the market share and physical retail space left behind, the structure of Ghana’s retail industry could fundamentally change, and not necessarily in favor of the consumer.
He added that, “dominance in this segment could have long-lasting effects on consumer welfare and may be difficult to dismantle.”
What Should Be Done?
It is because of the above possible implications of the deal that Adomako is calling on the government to take a keen interest in the development. To him, the sale of Shoprite’s operations is not merely a private matter between buyer and seller. It has broader implications for competition, consumer welfare, and the future of Ghana’s retail sector.
He is therefore calling on the Ministry of Trade and Industry or the Attorney General’s office to step in and ensure the acquisition does not create a monopoly or harm suppliers and consumers.
