Shocking! Real Reason Shoprite is Exiting Nigeria

Biggest grocery retailer Shoprite has announced its decision to reevaluate and exit it’s operation in Nigeria after 15 years of operation following the decline in sales due to the coronavirus pandemic.

According to the statistics, Shoprite Holdings reported a drop in it’s annual earnings and have started a formal process to sell off all or majority stakes in it’s supermarket in Nigeria.

“Following approaches from various potential investors, and in line with our re-evaluation of the group’s operating model, in Nigeria, the Board has decided to initiate a formal process to consider the potential sale of all, or a majority stake, in Retail Supermarkets Nigeria Limited, a subsidiary of Shoprite International Limited,” the company said in a statement.⁣
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“As such, Retail Supermarkets Nigeria Limited may be classified as a discontinued operation when Shoprite reports its results for the year. Any further updates will be provided to the market at the appropriate time.”⁣

Chief Executive Officer of Shoprite, Pieter Engelbrecht, says: “we remain committed to operating on the continent but are limiting future expansion whilst we review our options with regards to alternate operating models.⁣
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“Notwithstanding this, we have taken a number of immediate operational actions, all of which are ongoing and include rent reductions, store closures, productivity improvements and de-dollarising cost.⁣

In April, Nairametrics reported that Shoprite Holdings in Nigeria lost 8.1% of its sales in constant currency terms at the end of the second half (H2) of 2019 due to September’s Xenophobic attacks and reprisals back in Nigeria.⁣

Source: PulseNews