South Africa’s grocery retailer ShopRite is leaving Africa’s biggest market, Nigeria, 15 years after it opened shop in the West African country.
The announcement by ShopRite came months after another South African brand, Mr. Price, exited the market.
International supermarkets (excluding Nigeria) contributed 11.6% to group sales and reported a 1.4% decline in sales from 2018. South African operations contributed 78% of overall sales and saw an 8.7% rise for the year.
The company said it has been approached by potential investors willing to take over its Nigerian operations. It said it considering an outright sale of its operation or selling a majority stake in its Nigerian subsidiary.
“As such, Retail Supermarkets Nigeria Limited may be classified as a discontinued operation,” ShopRite said in a recent statement.
ShopRite denies exit rumour, says business remains in Nigeria
ShopRite Nigeria has debunked the story making the rounds that it intends to close shop in Nigeria.
The Country Director for Chastex Consult, Ini Archibong, in a telephone conversation, stated that “Shoprite is not leaving Nigeria.”
“We have only just opened to Nigerian investors which we have also been talking to just before now. We are not leaving, who leaves over a $30billion investment and close shop? It doesn’t sound right.
“We only just given this opportunity to Nigeria investors to come in and also help drive our expansion plan in Nigeria. So we are not leaving.
“I have tried to say this as too many people as I can. There should be no panic at all and all of that. There is no truth in that report.”
Recall that reports have been circulating that the retail outlet has started a formal process to consider the potential sale of all or a majority of stake in its supermarkets in Nigeria.
The report said the retailer had struggled in the Nigerian market after some South African owned retailer shops exited the Nigerian market.
The report also said international markets excluding Nigeria contributed 11.6 percent to the group sales and reported 1.4 percent decline in sales from 2018.
The report further stated that Shoprite’s results for the year do not reflect any of their operations in Nigeria as it will be classified as a discontinued operation.
South African operations contributed 78 percent of the overall sales and saw an 8.7 percent raise for the years.
The report went further to say that as a result of the lockdown, customers’ visits declined 7.4 percent but the average basket spends increased by 18.4 percent.